In a recent transaction, Harris Laurie, a director at Hagerty, Inc. (NYSE:HGTY), sold 4,119 shares of the company's Class A Common Stock. The shares were sold on June 13, 2024, for a total value of $41,766, at a weighted average price of $10.14 per share. The transaction was automatically executed under a Rule 10b5-1 trading plan, which was previously adopted by Laurie on March 14, 2024.
The sale was not a discretionary transaction and was specifically conducted to cover tax withholding obligations that arose from the vesting of Laurie's restricted stock units. According to the filing, the shares sold were the exact number needed to satisfy Laurie's tax requirements.
Investors interested in the specifics of the sale should note that the shares were sold at varying prices ranging from $9.88 to $10.32. The reported weighted average price consolidates these multiple trades. Following this transaction, Laurie's direct ownership in Hagerty, Inc. stands at 20,455 shares.
Hagerty, Inc., headquartered in Traverse City, Michigan, operates within the insurance agents, brokers, and services industry. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol HGTY. This recent filing provides transparency into the trading activities of the company's directors and is a routine disclosure required by securities regulations.
In other recent news, Hagerty, a key player in collectible vehicle insurance, has reported impressive Q1 results for 2024, with a significant boost in both commission and marketplace revenues. The company's commission revenue saw a 19% increase, fueled by gains in written premiums and robust underwriting results. In addition, marketplace revenue witnessed a 58% surge, which can be attributed to an increase in listings and higher auction sales.
Hagerty also reported an improvement in operating margins by 1,200 basis points, a $23 million increase in net income, and a $21 million growth in adjusted EBITDA. The company's 2024 outlook remains optimistic, projecting a top-line revenue growth of 15-17% and a net income forecast of $61 million to $70 million.
Recent developments also include the company's anticipation of a 13-14% growth in written premiums and an aim for 11-12% adjusted EBITDA margins in 2024. A noteworthy mention is the scheduled investor event on May 31, where the company plans to discuss its long-term growth strategies. These recent developments illustrate Hagerty's robust financial position and strategic growth plans.
InvestingPro Insights
Hagerty, Inc. (NYSE:HGTY) seems to be capturing the attention of investors and analysts alike, with several positive indicators emerging from its recent performance. As of the last twelve months leading up to Q1 2024, the company boasts a robust revenue growth of 25.7%, signaling a strong upward trajectory in its financials. This is further evidenced by a gross profit margin of 57.06%, highlighting the company's efficiency in managing its cost of goods sold relative to its sales.
Moreover, Hagerty's stock has demonstrated a resilient return over the past six months, with a 21.22% increase, and it continues to maintain its momentum year-to-date, with a 25.26% total return. This could be an indication of the market's confidence in the company's growth prospects.
InvestingPro Tips provide additional insights into Hagerty's potential. Analysts predict that the company will be profitable this year, which is a notable turnaround given that the current P/E ratio is not applicable. Furthermore, there have been upward revisions of earnings by three analysts for the upcoming period, suggesting that there may be positive developments on the horizon for the company. For those looking to delve deeper into Hagerty's financials and future outlook, additional tips can be found on the InvestingPro platform, which includes a total of 9 tips for HGTY.
For investors and traders seeking a more comprehensive analysis, they can take advantage of the exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With a fair value estimate by InvestingPro at $13.54, significantly above the previous close price of $9.77, there may be potential for upside that interested parties may want to consider.
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