In recent trading activity, Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), sold a significant portion of his holdings in the company. Over a span of three days, Kauffman executed a series of transactions that resulted in the sale of company stock amounting to over $100,000.
The sales occurred between May 8 and May 10, with prices for the shares ranging from $9.04 to $9.29. The transactions were executed in multiple trades, and the prices reported are weighted averages, which Kauffman has agreed to provide detailed information about upon request.
On May 8, Kauffman sold 3,103 shares at an average price of $9.25 per share. The following day, he sold 2,894 shares at an average price of $9.29. The final sale on May 10 consisted of 5,185 shares at an average price of $9.04 per share. The total value of the shares sold across these transactions amounted to approximately $102,460.
The shares sold were held indirectly by Kauffman through Aldel LLC, for which he serves as the manager and has voting and investment discretion. Kauffman has declared that he disclaims beneficial ownership of these securities except to the extent of his pecuniary interest.
The sale was conducted in accordance with a Rule 10b5-1 trading plan, which Kauffman had previously adopted on August 11, 2023. Such plans allow company insiders to sell shares over a predetermined period of time to avoid accusations of trading on insider information.
Following these sales, Kauffman's remaining ownership in Hagerty, Inc. stands at 3,400,160 shares. Investors and market watchers typically pay close attention to insider trading activity for hints about a company's prospects, although such transactions do not always indicate a change in company fundamentals.
Hagerty, Inc., based in Traverse City, Michigan, specializes in insurance and automotive lifestyle services, catering to the needs of car enthusiasts and collectors.
InvestingPro Insights
Amidst the insider trading activity at Hagerty, Inc. (NYSE:HGTY), investors may find a broader financial perspective helpful for evaluating the company's current market position. Two notable InvestingPro Tips suggest a nuanced outlook for Hagerty. Firstly, analysts have a positive outlook on the company's earnings, with three analysts having revised their earnings upwards for the upcoming period. Secondly, despite a high Price/Earnings (P/E) ratio, Hagerty is trading at a low P/E ratio relative to near-term earnings growth, indicating potential for growth that may not be reflected in the current share price.
Key InvestingPro Data metrics also provide essential context: Hagerty's market capitalization stands at $3.13 billion, and while the company's P/E ratio is high at 99.74, it adjusts to a more moderate 43.76 when considering the last twelve months as of Q1 2024. This adjustment is pertinent given the company's substantial revenue growth of 25.7% during the same period. Moreover, the company's Price/Book ratio is at 32.07, which could be considered steep, potentially reflecting market expectations of future growth or a premium on the company's assets.
For investors seeking more comprehensive analysis and additional InvestingPro Tips, they can explore further at https://www.investing.com/pro/HGTY. With 8 more tips available on InvestingPro, subscribers can gain deeper insights into Hagerty's financial health and future prospects. To enrich their investment research experience, users can apply the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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