In a recent move, Robert I. Kaufman, Director of Hagerty, Inc. (NYSE:HGTY), an insurance brokerage firm, sold a notable number of shares in the company. Over the course of three days, Kaufman disposed of a total of 26,780 shares, resulting in proceeds of more than $260,000.
The transactions, which took place between June 3 and 5, saw shares sold at prices ranging from $9.71 to $9.93. On the first day, Kaufman sold 9,630 shares at an average price of $9.71. The next day, an additional 9,872 shares were sold for an average of $9.82 per share. The last day saw 7,278 shares sold at an average price of $9.93.
These sales were made under a Rule 10b5-1 trading plan, which Kaufman previously adopted on August 11, 2023. This plan allows company insiders to conduct pre-planned transactions at a time when they do not have material non-public information. To avoid possible accusations of insider trading.
Following the transaction, Kaufman's indirect ownership through Aldel LLC, where he has voting and investment power, is 3,336,880 shares of Class A common stock. It is important to note that Kaufman has denied beneficial ownership of these securities, except to the extent of his financial interest.
Investors and market watchers often pay close attention to insider trading patterns as they can provide insight into how company executives view a stock's value and future prospects. However, it is also common for executives to sell stock for personal financial planning reasons unrelated to their future outlook for the company.
Hagerty, Inc., known for specializing in insurance for classic cars and other vehicles, continues to operate from its headquarters in Traverse City, Michigan. The Company did not provide any public comments regarding these recent transactions by Director Kaufman.
In other recent news, Hagerty reported strong performance for the first quarter of 2024. The company saw significant growth in both commission revenue, which rose 19%, and marketplace revenue, which rose 58%. This growth is due to increased written premiums, more listings, and higher auction sales. The company also reported improved operating margins, an increase in net income of $23 million, and growth in adjusted EBITDA of $21 million.
Hagerty's positive outlook for 2024 includes expectations for continued revenue growth of 15-17% and a net income forecast of $61 million to $70 million. The company's financial position is strengthened through strategic partnerships and upcoming product launches, including Enthusiast Plus scheduled for launch in 2025 and 2026.
In addition to these developments, Hagerty detailed its debt structure, revealing $29 million of back-end leverage against collectible auto loans. An investor event is also scheduled for May 31, where the company plans to outline its long-term growth strategies. These are among the latest developments for Hagerty as it continues to show strong growth and expansion in its market.
InvestingPro Insights
Amid insider trading activity at Hagerty, Inc. (NYSE:HGTY), the company's financial outlook presents an interesting picture for investors. according to InvestingPro According to the data, Hagerty's market cap is a solid $3.32 billion. The company has demonstrated strong revenue growth of 25.7% over the past 12 months as of Q1 2024, reflecting its growing market presence in the classic car insurance space. Additionally, Hagerty's price is trading near its 52-week high, at 99.9% of peak value, indicating continued investor confidence in the company's shares.
From an earnings perspective, Haggerty shows potential for growth, he highlighted Pro investment tips. Analysts have revised their earnings upward for the coming period, indicating optimism about the company's profitability. Furthermore, the company is expected to grow its net income this year, which may justify a higher price/book multiple of 35.97, as investors expect future earnings to justify the current valuation.
For those seeking a deeper dive into Hagerty's performance and future potential, InvestingPro Provides additional tips. There are 6 others Pro investment tips available, which can provide valuable insights for making informed decisions. Interested investors can access these more detailed tips and metrics by visiting the website InvestingPro At: https://www.investing.com/pro/HGTY. Moreover, users can avail the exclusive offer by using the coupon code ProNews24 Get an extra 10% off Pro and Pro+ subscriptions annually or every two years.
It's also worth noting that Hagerty does not pay dividends to shareholders, which may be a consideration for those investors looking for regular sources of income from their investments. As the company continues to navigate the competitive specialty insurance landscape, these financial metrics and insider trading activities will be closely monitored by market participants.
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