Hagerty, Inc. (NYSE:HGTY) director Robert I. Kauffman has sold a total of 14,253 shares of the company's Class A Common Stock in a series of transactions, according to a recent SEC filing. The sales, which occurred between September 26 and September 30, amounted to nearly $148,000.
The transactions were executed under a Rule 10b5-1 trading plan, which Kauffman had adopted on August 11, 2023. This plan allows insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, providing a defense against accusations of insider trading.
The sales took place at varying prices, with the weighted average prices per share ranging from $10.22 to $10.52. On September 26, Kauffman sold 4,466 shares at an average price of $10.52. The following day, 3,913 shares were sold at an average price of $10.46. Finally, on September 30, 5,874 shares were sold at an average price of $10.22.
Following these transactions, Kauffman's indirectly held ownership, through Aldel LLC, stands at a substantial 5,134,664 shares of Hagerty. It is important to note that while Kauffman is the manager of Aldel LLC and possesses voting and investment discretion over the securities, he disclaims beneficial ownership except to the extent of his pecuniary interest.
Investors often keep a close eye on insider transactions as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. However, it is essential to consider that selling activity may not always necessarily reflect a negative outlook, as insiders might sell shares for various personal financial reasons.
"In other recent news, Hagerty, Inc., the insurance provider, has made significant strides in its growth strategy. The company recently completed an acquisition of Consolidated National Insurance Company for approximately $18.4 million, further expanding its portfolio in the insurance sector. This strategic move is expected to bolster Hagerty's offerings and market presence in the industry.
On the financial front, Hagerty has consistently surpassed market expectations, marking its sixth consecutive quarter of robust performance in Q2 of 2024. The company's written premiums saw an impressive increase of 18% in the first half of the year, attributed to strategic hires and an enhanced focus on member experiences.
In light of these developments, Hagerty has revised its full-year outlook upward. The company now anticipates revenue between $1.16 billion and $1.18 billion, with net income projected to be between $76 million and $84 million. Adjusted EBITDA forecasts range from $130 million to $140 million, signaling a positive trajectory for the company in the vibrant collector car market. Despite a volatile interest rate environment, Hagerty remains optimistic about its financial performance, backed by its clear strategy and strong market position."
InvestingPro Insights
To provide additional context to Robert I. Kauffman's recent stock sales, let's examine some key financial metrics and insights from InvestingPro for Hagerty, Inc. (NYSE:HGTY).
According to InvestingPro data, Hagerty's market capitalization stands at $3.55 billion. The company has shown strong revenue growth, with a 23.75% increase over the last twelve months as of Q2 2023, reaching $1.11 billion. This growth trend is further supported by a 19.9% quarterly revenue increase in Q2 2023.
An InvestingPro Tip indicates that Hagerty is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation. This is particularly interesting given Kauffman's recent stock sales, as it might imply that the director's transactions are not necessarily indicative of the company's growth prospects.
Another relevant InvestingPro Tip notes that analysts predict the company will be profitable this year. This aligns with the observed revenue growth and could explain why, despite the insider selling, there's optimism about Hagerty's financial performance.
It's worth noting that Hagerty's stock has experienced a 12.73% decline over the past month, which coincides with the timing of Kauffman's sales. However, the year-to-date price total return remains positive at 33.59%, indicating overall strong performance in 2023.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights, with 8 more tips available for Hagerty on the platform.
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