Robert Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), has recently sold a significant portion of his holdings in the company. The sale comes as Hagerty's stock has shown strong momentum, with a year-to-date return of 51% and current trading price of $11.87, approaching its 52-week high of $12.35. According to a filing with the Securities and Exchange Commission, Kauffman sold a total of 93,242 shares of Class A Common Stock over three transactions between November 27 and December 2. The sales were executed at prices ranging from $11.71 to $11.95 per share, amounting to a total value of approximately $1.1 million. InvestingPro analysis suggests the company, currently valued at $4.02 billion, may be trading below its Fair Value, with several positive indicators available to subscribers.
These transactions were conducted under a Rule 10b5-1 trading plan, which Kauffman adopted on August 9, 2024. This plan allows insiders to set up a predetermined schedule for selling stocks, helping them avoid potential accusations of insider trading.
Post-transaction, Kauffman continues to hold 4,567,344 shares indirectly through Aldel LLC, where he has voting and investment discretion. Additionally, he directly owns 53,474 shares of Hagerty's Class A Common Stock.
In other recent news, Hagerty reported a significant increase in total revenue during its third quarter 2024 earnings call. Despite industry challenges, including a $25 million loss from Hurricane Helene, Hagerty saw a 20% rise in total revenue, reaching $323 million. The company also added a record 275,000 new members, contributing to a 16% year-to-date written premium growth. Hagerty's operating income stood at $60 million, with an adjusted EBITDA of $105 million.
The company's projected net income for 2024 is estimated between $65 million and $74 million, inclusive of the impact of recent hurricanes. Hagerty also anticipates its total revenue for 2024 to be approximately $1.18 billion. The company is preparing for the launch of its Enthusiast Plus business in early 2025.
These recent developments highlight Hagerty's robust growth amid industry challenges. The company's unique business model is positioned to capitalize on significant growth potential in the collectible car market, where Hagerty holds a 5% market share. Despite the losses due to hurricanes, Hagerty remains optimistic about its growth trajectory and continues to focus on delivering value to its expanding member base.
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