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Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), recently reported the sale of 9,589 shares of the company’s Class A common stock. The transactions, executed over three days from January 15 to January 17, 2025, were carried out under a pre-established Rule 10b5-1 trading plan. The sales were conducted at prices ranging from $9.64 to $9.73 per share, amounting to a total value of approximately $92,855.
Following these transactions, Kauffman, through Aldel LLC, retains ownership of 4,375,960 shares indirectly. Additionally, he holds 53,474 shares directly. The sales were part of a planned strategy, as indicated by the trading plan adopted in August 2024.
In other recent news, Hagerty Inc. experienced robust growth in its third-quarter 2024 earnings call, witnessing a 20% surge in total revenue to $323 million and adding a record 275,000 new members. The company's operating income reached $60 million with an adjusted EBITDA of $105 million, despite enduring $25 million in losses from Hurricane Helene. Hagerty's anticipated total revenue for 2024 stands at approximately $1.18 billion, with a projected net income between $65 million and $74 million.
However, Raymond (NS:RYMD) James analysts recently downgraded Hagerty's stock from Market Perform to Underperform, citing valuation concerns. The company, currently valued at $910 million, trades at approximately 34 times the analysts' estimated earnings per share (EPS) for 2025, significantly higher than the industry averages. This valuation gap was a key factor in the decision to downgrade the stock.
In other company developments, Hagerty plans to launch its Enthusiast Plus business in early 2025. These recent events underscore Hagerty's commitment to enhancing member experience amid industry challenges, with analysts and investors closely watching the company's strategic initiatives and growth expectations in light of the current market valuation.
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