Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), reported selling shares of the company earlier this month. According to a recent SEC filing, Kauffman sold a total of 7,313 shares over three consecutive days, from October 14 to October 16. The shares were sold at prices ranging from $10.72 to $10.78, amounting to a total transaction value of $78,651.
Following these transactions, Kauffman holds 5,080,626 shares indirectly through Aldel LLC, where he serves as a manager with voting and investment discretion. The sales were executed under a pre-arranged Rule 10b5-1 trading plan, which Kauffman adopted in August 2023.
In other recent news, Hagerty has been making significant strides in the insurance sector. The company recently successfully completed the acquisition of Consolidated National Insurance Company, a strategic move that expands its portfolio in the insurance industry. The cash transaction worth approximately $18.4 million is seen as part of Hagerty's broader strategy to enhance its service offerings and competitive edge within the industry.
In addition to this acquisition, Hagerty has been reporting robust financial performance, surpassing market expectations for the sixth consecutive quarter in Q2 of 2024. The company's written premiums saw a significant increase of 18% in the first half of the year, contributing to a strong overall performance. Analysts attribute this growth to strategic hires and a concentrated effort to enhance member experiences.
Looking forward, Hagerty has revised its full-year outlook upward, now anticipating revenue between $1.16 billion and $1.18 billion. The company's net income is projected to be between $76 million and $84 million, with adjusted EBITDA forecasts expected to range from $130 million to $140 million. Despite potential challenges such as the volatile interest rate environment, Hagerty remains focused on capitalizing on growth opportunities in the vibrant collector car market.
InvestingPro Insights
While Robert I. Kauffman's recent share sales might raise eyebrows, a closer look at Hagerty, Inc.'s (NYSE:HGTY) financials reveals a more nuanced picture. According to InvestingPro data, Hagerty boasts a market capitalization of $3.66 billion and has demonstrated strong revenue growth, with a 23.75% increase over the last twelve months as of Q2 2024. This robust growth trajectory aligns with an InvestingPro Tip suggesting that net income is expected to grow this year.
Despite trading at a high Price/Book multiple of 38.76, Hagerty's PEG ratio of 0.2 indicates that the stock may be undervalued relative to its growth prospects. This is further supported by another InvestingPro Tip, which notes that the company is trading at a low P/E ratio relative to near-term earnings growth.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide valuable insights into Hagerty's financial health and market position. These additional tips could help contextualize Kauffman's share sales within the broader picture of the company's performance and outlook.
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