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In a series of transactions, Robert I. Kauffman, a director of Hagerty, Inc. (NYSE:HGTY), an insurance agency specializing in classic and enthusiast vehicles, has sold a significant portion of his holdings in the company. Over a span of three days, Kauffman offloaded a total of 22,003 shares, resulting in proceeds exceeding $335,000.
These sales took place between July 9 and July 11, 2024, with prices for the shares ranging from $11.11 to $11.34. On July 9, Kauffman sold 8,572 shares at an average price of $11.11, followed by a sale of 13,324 shares on July 10 at an average price of $11.14. The final transaction on July 11 consisted of 8,107 shares sold at an average of $11.34 per share.
The transactions were carried out under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Kauffman had adopted on August 11, 2023. Such plans allow company insiders to sell shares over a predetermined schedule to avoid accusations of trading on non-public, material information.
Following the sales, Kauffman's indirectly held stake in the company, through Aldel LLC, has been adjusted to 5,498,493 shares. It is important to note that although Kauffman is the manager of Aldel LLC and has voting and investment discretion over the securities, he disclaims beneficial ownership except to the extent of his pecuniary interest.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into an insider’s view of the company’s value. The reported sales by a company director like Kauffman are typically considered a routine part of personal financial management but are still closely monitored for any potential signals they may send about a company's future prospects.
In other recent news, Hagerty, Inc. has reported a strong Q1 performance in 2024, with significant growth in both commission and marketplace revenue. The company's net income increased by $23 million, and adjusted EBITDA grew by $21 million. The robust performance has led to a positive outlook for 2024, forecasting a revenue growth of 15-17% and a net income between $61 million to $70 million. In addition to financial growth, Hagerty recently completed a successful warrant exchange offer, with an overwhelming majority of the outstanding Public Warrants, Private Placement Warrants, and PIPE Warrants being validly tendered and not withdrawn before the offer concluded. Hagerty has also welcomed insurance veteran Anthony J. Kuczinski to its Board of Directors. Kuczinski, with a 34-year tenure at Munich Reinsurance US Holdings, is expected to bring his vast experience to Hagerty's future growth. Lastly, the company is preparing for the launch of a new product, Enthusiast Plus, as part of its strategic initiatives.
InvestingPro Insights
Amidst the news of director Robert I. Kauffman's recent share sales in Hagerty, Inc. (NYSE:HGTY), current and potential investors may find the following insights from InvestingPro valuable for a deeper understanding of the company's financial landscape. According to InvestingPro data, Hagerty has a market capitalization of approximately $3.79 billion and is trading with a Price/Earnings (P/E) ratio of 116.17. While this P/E ratio might seem high, it's important to consider that it reflects a significant reduction to 58.9 when adjusted for the last twelve months as of Q1 2024, indicating an expected growth in net income.
Moreover, the company's Price to Book (P/B) ratio stands at a substantial 41.33, which could suggest that the market is valuing the company's assets quite highly. In terms of performance, Hagerty has experienced a robust revenue growth of 25.7% over the last twelve months as of Q1 2024. Additionally, the company has seen a substantial three-month price total return of 31.76%, which aligns with a notable 41.77% return over the last six months.
InvestingPro Tips highlight that analysts are optimistic about Hagerty's future, with three analysts having revised their earnings projections upwards for the upcoming period. Furthermore, the company is trading at a low P/E ratio relative to near-term earnings growth, which could be an attractive point for investors looking for growth opportunities. It's also worth noting that Hagerty does not pay a dividend, which may be relevant for investors seeking income through dividends.
For those interested in further analysis and tips, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available for Hagerty, which can be accessed through InvestingPro's platform. To get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, use the coupon code PRONEWS24.
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