Hagerty, Inc. (NYSE:HGTY) director Robert I. Kauffman has recently sold a total of $136,213 worth of company stock, according to the latest SEC filings. The transactions occurred over a series of three days, with prices ranging from $10.98 to $11.13 per share.
On July 30, Kauffman sold 3,866 shares at an average price of $11.01, followed by a sale of 3,001 shares on July 31 at an average price of $11.13. The final sale took place on August 1, where 5,487 shares were sold at an average price of $10.98. These sales were conducted under a Rule 10b5-1 trading plan, which Kauffman had adopted on August 11, 2023.
Following these transactions, the SEC filing disclosed that Kauffman still indirectly owns 5,394,008 shares through Aldel LLC, where he serves as the manager with voting and investment discretion. The filings also indicated that Kauffman disclaims beneficial ownership of these securities, except to the extent of his pecuniary interest.
The sales were executed in multiple trades, and the reported prices represent the weighted average purchase price. Kauffman has agreed to provide full information regarding the number of shares sold and the prices at which the transactions were effected upon request to the SEC staff, the issuer, or a security holder of the issuer.
Hagerty, Inc., headquartered in Traverse City, Michigan, operates within the insurance agents, brokers, and services industry. The transactions by a company insider such as Kauffman often draw attention from investors seeking insights into executive sentiment toward their company's stock.
In other recent news, Hagerty, Inc., a specialty vehicle insurance provider, has reported a robust Q1 performance in 2024, with notable growth in both commission and marketplace revenue. The company's net income rose by $23 million, and adjusted EBITDA increased by $21 million, leading to a forecasted revenue growth of 15-17% and a net income between $61 million to $70 million for 2024. On the personnel front, Hagerty appointed Sean McMullan, an Amazon (NASDAQ:AMZN) veteran, as the Senior Vice President of Digital Marketplace and Valuation, and added insurance expert Anthony J. Kuczinski to its Board of Directors.
The company also successfully completed its warrant exchange offer, with an overwhelming majority of the outstanding Public Warrants, Private Placement Warrants, and PIPE Warrants tendered and not withdrawn before the offer concluded. This surpassed the 50% consent threshold required to amend the warrant agreements, resulting in an exchange of the remaining warrants for shares of Class A Common Stock. These recent developments indicate a strong trajectory for Hagerty's future expansion and profitability.
InvestingPro Insights
Hagerty, Inc. (NYSE:HGTY) has been exhibiting signs of robust financial performance and market sentiment, as reflected in recent data and analysis. An InvestingPro Tip suggests that the company's net income is expected to grow this year, which could be a contributing factor to director Robert I. Kauffman's decision to sell shares. Furthermore, analysts remain optimistic about the company, predicting it will be profitable this year, which aligns with the company's profitable performance over the last twelve months.
On the valuation front, the company is trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio for the last twelve months as of Q1 2024 standing at 57.32. This could indicate that the stock is undervalued compared to its growth potential. Despite this, the company is trading at a high Price / Book multiple of 40.16, suggesting a premium on its assets. Additionally, the company's stock has seen a strong return over the last three months, with a price total return of 24.41%.
InvestingPro Data underscores the company's solid financial footing. Hagerty's revenue growth for the last twelve months as of Q1 2024 was 25.7%, highlighting its ability to expand its top-line figures. The gross profit margin stood at 57.06%, indicating a strong ability to control costs relative to revenue. Moreover, the company's EBITDA growth was an impressive 1427.13% for the same period, showcasing significant operational efficiency gains.
For investors seeking additional insights, there are more InvestingPro Tips available that could provide further guidance on Hagerty's stock performance and potential investment opportunities. The company's recent financial health and stock performance may offer valuable context for understanding the insider transactions carried out by Kauffman.
Visit InvestingPro for a comprehensive list of additional tips that could help in making more informed investment decisions regarding Hagerty, Inc.
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