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In recent activity at Hagerty, Inc. (NYSE:HGTY), a $859 million market cap company, Robert I. Kauffman, a director of the company, has sold shares amounting to $112,218. According to a Form 4 filing with the Securities and Exchange Commission, the transactions took place on January 7 and 8, 2025. Kauffman sold a total of 11,868 shares of Class A Common Stock. The sales were executed at prices ranging from $9.40 to $9.50 per share, with InvestingPro analysis indicating the stock is currently in oversold territory. These transactions were conducted under a Rule 10b5-1 trading plan that Kauffman had adopted on August 9, 2024. Following these sales, Kauffman, through Aldel LLC, now holds 4,405,500 shares indirectly and 53,474 shares directly. According to InvestingPro's Fair Value analysis, the stock appears undervalued despite its recent -15% six-month performance. Get access to 8 more key insights and a comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Hagerty Inc. reported substantial growth in its third-quarter 2024 earnings call, with a 20% increase in total revenue, reaching $323 million. The company also added a record 275,000 new members, contributing to a 16% growth in written premium for the year. Despite facing hurricane losses, Hagerty posted an operating income of $60 million and adjusted EBITDA of $105 million. The company anticipates total revenue for 2024 to be approximately $1.18 billion, with a projected net income between $65 million and $74 million.
On the other hand, Raymond (NS:RYMD) James analysts recently downgraded Hagerty stock from Market Perform to Underperform, citing concerns over the company's valuation. The analysts noted that Hagerty is currently trading at approximately 34 times their estimated earnings per share for 2025, which is significantly higher than the average of its industry peers. The analysts believe that the premium valuation reflects optimistic growth prospects but also presents a concern that prompted the rating change.
These recent developments highlight Hagerty's commitment to enhancing member experience amid industry challenges. The company's financial performance and future plans reflect its resilience and adaptability in a dynamic market environment. Additionally, the company plans to launch its Enthusiast Plus business in early 2025, which further underscores its strategic initiatives.
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