Hagerty director Kauffman sells over $377k in company stock

Hagerty, Inc. (NYSE:HGTY) director Robert I. Kauffman has sold a total of 34,350 shares of the company's stock in a series of transactions, according to recent SEC filings. The sales, executed between July 12 and July 16, amounted to over $377,580, with share prices ranging from $10.86 to $11.14.

The transactions began on July 12, when Kauffman sold 11,835 shares at an average price of $11.14 per share. This was followed by the sale of 14,853 shares on July 15, at an average price of $10.86 per share. The final sale took place on July 16, with 7,662 shares sold at an average price of $11.02 per share. The prices reported represent the weighted average purchase price, as the transactions were executed in multiple trades within the stated ranges.

Following these transactions, Kauffman still holds a substantial amount of Hagerty stock. The SEC filings indicate that after the sales, Kauffman's indirectly held shares, by Aldel LLC, amount to 5,464,143 shares of Hagerty's Class A Common Stock. Kauffman, as the manager of Aldel LLC, has voting and investment discretion over these securities. However, he disclaims beneficial ownership of the reported securities, except to the extent of his pecuniary interest therein.

The SEC filings also revealed that the sales were conducted in accordance with a Rule 10b5-1 trading plan, which Kauffman had adopted on August 11, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a legal defense against potential accusations of trading on insider information.

Investors and the market often closely monitor insider transactions as they can provide insights into an insider's view of the company's future prospects. The filings are a matter of public record and provide transparency into the trading activities of company executives and other insiders.

In other recent news, Hagerty, Inc., known for specialty vehicle insurance, has seen significant developments. The company reported a strong Q1 performance in 2024, with a notable increase in both commission and marketplace revenue. Net income rose by $23 million, and adjusted EBITDA grew by $21 million. The company's forecast for 2024 includes a revenue growth of 15-17% and a net income between $61 million to $70 million.

In addition to financial growth, Hagerty also completed a successful warrant exchange offer, with a majority of Public, Private Placement, and PIPE Warrants tendered and exchanged for shares of Class A Common Stock. The company also welcomed insurance veteran Tony Kuczinski, former CEO of Munich Reinsurance US Holdings, to its Board of Directors.

In line with its strategic initiatives, Hagerty is preparing to launch a new product, Enthusiast Plus. These recent developments underscore Hagerty's commitment to growth and its position in the market.

InvestingPro Insights

As Hagerty, Inc. (NYSE:HGTY) navigates the market, recent data from InvestingPro provides a deeper dive into the company's financial health and stock performance. With a market cap of $3.71 billion and a revenue growth over the last twelve months as of Q1 2024 at an impressive 25.7%, Hagerty shows a robust top-line expansion. This growth is further underscored by a gross profit margin of 57.06%, indicating strong operational efficiency and control over costs.

InvestingPro Tips highlight that Hagerty is trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio as of Q1 2024 at 57.2, suggesting that the stock may be undervalued considering its growth prospects. Additionally, the company is expected to maintain its profitability, as analysts predict it will be profitable this year, complementing a strong return over the last three months.

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