Hagerty director Kauffman sells shares worth about $148k Via Investing.com

Director of Hagerty, Inc. (NYSE:HGTY) Robert I. Kauffman sold a total of 14,253 shares of the company’s Class A Common Stock in a series of transactions, according to the most recent SEC filing. The sale, which took place between September 26 and September 30, totaled approximately $148,000.

The transaction was made under the Rule 10b5-1 trading plan, which Kauffman had taken on August 11, 2023. The plan allows insiders to set up a predetermined schedule to sell stocks at a time when they do not have non-public assets. information, which provides a defense against insider trading claims.

The sale took place in a variety of amounts, with estimated average prices per share ranging from $10.22 to $10.52. On September 26, Kauffman sold 4,466 shares at an estimated price of $10.52. The next day, 3,913 shares were sold at an average price of $10.46. Finally, on September 30, 5,874 shares were sold at an average price of $10.22.

After this transaction, Kauffman’s indirect ownership, through Aldel LLC, stood at 5,134,664 shares of Hagerty. It is important to note that although Kauffman is the manager of Aldel LLC and can vote and invest on the securities, he disclaims beneficial ownership except for a measure of his capital gains.

Investors often pay close attention to insider trading as they can provide insight into management’s views on the company’s current valuation and future prospects. However, it is important to consider that selling activity may not always reflect a negative outlook, as insiders may sell shares for various financial reasons.

“In other recent news, Hagerty, Inc., an insurance provider, has taken an important step in its growth. The company recently completed the acquisition of Consolidated National Insurance Company for approximately $18.4 million, further expanding its portfolio in the insurance sector. This strategic move is expected to strengthen Hagerty’s offering and market presence in the industry.

On the financial side, Hagerty has consistently outperformed market expectations, marking its sixth consecutive quarter of strong performance in Q2 2024. The company’s written premiums grew by an impressive 18% in the first half of the year, driven by strategic hires and premiums. enhanced focus on member experience.

Because of these developments, Hagerty revised its full-year outlook upward. The company now expects revenue between $1.16 billion and $1.18 billion, while revenue is estimated to be between $76 million and $84 million. Adjusted EBITDA forecasts range from $130 million to $140 million, reflecting the company’s positive trajectory in the collector car market. Despite the volatile interest rate, Hagerty remains optimistic about its financial performance, supported by its clear strategy and strong market conditions.”

InvestingPro Insights

To provide more context to Robert I. Kauffman’s recent stock sales, let’s examine some key financial metrics and data from InvestingPro for Hagerty, Inc. (NYSE:HGTY).

According to InvestingPro data, Hagerty’s market capitalization stands at $3.55 billion. The company showed a strong growth in revenue, with an increase of 23.75% in the last twelve months from Q2 2023, reaching $ 1.11 billion. This growth trend is also supported by a 19.9% ​​quarterly revenue increase in Q2 2023.

InvestingPro’s tip indicates that Hagerty trades at a low P/E ratio relative to its near-term earnings growth, suggesting potential valuation. This is especially interesting given the recent selloff of Kauffman’s stock, as it may mean that the director’s sales do not necessarily reflect the company’s growth potential.

Another relevant InvestingPro Tip notes that analysts are predicting that the company will be profitable this year. This is consistent with revenue growth and may explain why, aside from internal sales, there is optimism about Hagerty’s financial performance.

It’s worth noting that Hagerty’s stock is down 12.73% in the past month, coinciding with Kauffman’s sales. However, the year-to-date total price remains positive at 33.59%, indicating strong overall performance in 2023.

For investors looking for a comprehensive analysis, InvestingPro offers additional tips and insights, with 8 other tips available on Hagerty’s platform.

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