Hagerty, Inc. (NYSE:HGTY) director Robert I. Kauffman has sold a total of $394,078 worth of company stock, according to recent SEC filings. The transactions occurred over a series of trades with varying prices between $11.75 and $11.87 per share.
The filings indicate that on August 30, 2024, Kauffman sold 14,507 shares at a weighted average price of $11.84 per share. Following this transaction, he executed another sale on September 3, disposing of 10,067 shares at an average price of $11.75. The last recorded sale took place on September 4, where Kauffman sold 8,764 shares at an average price of $11.87.
Post these transactions, Kauffman still holds a substantial number of shares in Hagerty, indirectly through Aldel LLC, as per the SEC filings. The sales were conducted under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading.
Investors often monitor insider sales as they provide insights into executives' perspectives on their company's current valuation and future prospects. However, it is important to note that insider sales can be motivated by various factors unrelated to the company's performance, such as diversifying personal investment portfolios or other personal financial planning reasons.
Hagerty, headquartered in Traverse City, Michigan, specializes in insurance for classic cars and other related services. The company, formerly known as Aldel Financial Inc., has a strong presence in the automotive insurance industry.
In other recent news, Hagerty reported robust growth for Q2 2024, exceeding market expectations for the sixth consecutive quarter. The insurance and valuation company for collector cars saw an 18% increase in written premiums in the first half of the year. Strategic hires and a focus on improving member experiences have contributed to the company's revenue growth. Hagerty has also revised its full-year outlook, expecting revenue between $1.16 billion and $1.18 billion, net income between $76 million and $84 million, and adjusted EBITDA ranging from $130 million to $140 million.
The company's business model and strategic initiatives are projected to sustain compounding growth in revenue. Risks include a volatile interest rate environment that may affect projected income levels. However, Hagerty's shift in investment strategy to investment-grade bonds is anticipated to reduce risk and improve returns. These are among the recent developments for the company, which continues to capitalize on its growth opportunities in the vibrant collector car market.
InvestingPro Insights
As Hagerty, Inc. (NYSE:HGTY) experiences insider stock sales, the broader market may be seeking understanding and context from various financial metrics. According to InvestingPro data, Hagerty has a market capitalization of approximately $4.02 billion. The company has been showing a robust revenue growth of nearly 23.75% over the last twelve months as of Q2 2024, indicating a strong expansion in its financials. This is further complemented by a significant gross profit margin of 57.7%, showcasing the company's ability to maintain profitability in its operations.
InvestingPro Tips highlight that Hagerty is expected to see a net income growth this year, which could be a reassuring signal for investors concerned about the recent insider sales. Additionally, two analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's performance. This optimism is also reflected in the company's price performance, with a 35.58% price uptick over the last six months and a year-to-date price total return of 51.92%.
While the company's P/E ratio stands at a high 113.19, indicating a premium valuation, the adjusted P/E ratio for the last twelve months as of Q2 2024 is more moderate at 46.9. This suggests that when considering the company's near-term earnings growth, the valuation may be more reasonable. It's also worth noting that Hagerty does not pay a dividend to shareholders, which may influence investment decisions for those seeking income-generating assets.
Investors can explore additional InvestingPro Tips for Hagerty, Inc. to gain more insights into the company's financial health and market position. There are more tips available at https://www.investing.com/pro/HGTY, which could further inform investment strategies and decisions.
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