Director Robert I. Kauffman of Hagerty, Inc. (NYSE:HGTY), a company specializing in insurance for classic and enthusiast vehicles, has recently sold a portion of his holdings in the company. On April 1st, Kauffman sold 3,068 shares at a weighted average price of $9.10 per share. The following day, he sold 3,645 shares at an average of $9.01, and on April 3rd, he sold another 1,033 shares at $9.00 per share. The total value of the shares sold across these dates amounted to over $70,000.
These sales were executed under a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to sell stock at predetermined times to avoid accusations of trading on non-public information. The transactions took place through a series of trades, with prices ranging from $9.00 to $9.15.
In addition to the sales, the SEC filing also reported that Kauffman acquired 9,836 shares of Hagerty Class A Common Stock underlying Restricted Stock Units (RSUs) as part of the company's 2021 Equity Incentive Plan. These RSUs are set to vest on April 1, 2025, contingent upon Kauffman's continued service with the company.
The shares sold by Kauffman were held indirectly through Aldel LLC, for which he serves as the manager and has voting and investment discretion. Despite this, Kauffman has disclaimed beneficial ownership of these securities except to the extent of his pecuniary interest.
Following these transactions, Kauffman's ownership in Hagerty stands significantly changed, reflecting both the newly acquired RSUs and the shares sold. Investors and market watchers often keep a close eye on insider transactions as they can provide insights into a company's financial health and future prospects.
InvestingPro Insights
Amid the recent insider transactions at Hagerty, Inc. (NYSE:HGTY), a deeper look into the company's financials through InvestingPro data reveals a nuanced picture. With a market capitalization of $3.02 billion and a notable revenue growth of 27.0% in the last twelve months as of Q4 2023, Hagerty shows a robust expansion in its financial performance. The company's gross profit margin stands at a healthy 56.25%, indicating a strong ability to control costs relative to revenue.
Investors considering Hagerty's stock should note its current P/E ratio of 93.09, which suggests a high valuation relative to current earnings. However, the adjusted P/E ratio for the same period is significantly lower at 33.15, pointing towards a more favorable valuation when considering near-term earnings growth. This is further supported by the PEG ratio of 0.21, indicating potential undervaluation based on expected earnings growth rates.
An InvestingPro Tip highlights that analysts have revised their earnings upwards for the upcoming period, which could signal confidence in the company's future performance. Additionally, another InvestingPro Tip suggests that the net income of Hagerty is expected to grow this year, aligning with the positive revenue trends observed.
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