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Robert Kauffman, a director at Hagerty , Inc. (NYSE:HGTY), has recently sold shares of the company, according to a filing with the Securities and Exchange Commission. The transactions, executed under a pre-arranged trading plan, involved the sale of a total of 8,446 shares of Class A common stock over three days, from February 20 to February 24, 2025. The $3.43 billion market cap company has shown strong performance, with revenue growing 21% over the last twelve months. According to InvestingPro analysis, the stock appears undervalued despite trading at $10.09 per share.
The shares were sold at prices ranging from $9.97 to $10.07 per share, amounting to a total value of $84,612. Following these transactions, Kauffman, through Aldel LLC, holds 4,280,673 shares in Hagerty. InvestingPro has identified several positive indicators for the company, including expected net income growth this year. Subscribers can access detailed insider trading analysis and 6 additional ProTips for deeper insights.
These sales were executed under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stock, helping to avoid concerns about insider trading. The company maintains a healthy gross profit margin of 56% and has demonstrated consistent profitability over the last twelve months.
In other recent news, Raymond (NSE:RYMD) James analysts downgraded Hagerty Inc. from Market Perform to Underperform due to concerns over its valuation. The analysts noted that Hagerty is trading at approximately 34 times the estimated earnings per share for 2025, significantly higher than the industry average for both Personal Auto and Insurance Brokerage & Technology peers. This valuation discrepancy was a primary reason for the downgrade, despite expectations for robust top-line growth in 2025 driven by strategic partnerships and an expanding membership base. Hagerty’s enterprise value to EBITDA ratio for 2025 is also estimated at around 18 times, exceeding the peer average of roughly 14 times. This premium valuation reflects optimistic growth prospects, but also raises concerns about the stock’s pricing relative to market comparables. The downgrade from Raymond James highlights a cautious stance on Hagerty’s current valuation, suggesting it may be ahead of its peers. Investors will be closely monitoring Hagerty’s strategic initiatives to see if growth expectations align with its current market valuation.
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