Director of Hagerty, Inc. sold (NYSE:HGTY) Robert I. Kaufman sold a total of 14,253 shares of the company’s Class A common stock in a series of transactions, according to a recent filing with the Securities and Exchange Commission. The sales, which took place between September 26 and 30, amounted to approximately $148,000.
The transactions were executed under a Rule 10b5-1 trading plan, which Kaufman adopted on August 11, 2023. This plan allows insiders to prepare a pre-determined schedule for selling shares at a time when they do not have non-public materials. Information, providing defense against insider trading charges.
The sales occurred at varying prices, with weighted average prices per share ranging from $10.22 to $10.52. On September 26, Kaufman sold 4,466 shares at an average 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.
Following these transactions, Kaufman indirectly owns, through Aldel LLC, 5,134,664 senior shares in Hagerty. It is important to note that while Kaufman is a director of Aldel LLC and has voting and investment rights in the securities, he denies beneficial ownership except to the extent of his financial interest.
Investors often watch insider transactions closely as they can provide insights into executives’ views on a company’s current valuation and future prospects. However, it is necessary to keep in mind that selling activity may not necessarily reflect a negative outlook, as insiders may be selling shares for various personal financial reasons.
“In other recent news, Hagerty, Inc., an insurance company, has made significant strides in its growth strategy. The company recently completed the acquisition of Consolidated National Insurance Company for approximately $18.4 million, expanding its portfolio in the insurance sector. This strategic move is expected to enhance Hagerty’s offerings and market presence in the industry.
On the financial front, Hagerty has consistently exceeded market expectations, recording its sixth consecutive quarter of strong performance in Q2 2024. The company’s written premiums saw an impressive 18% increase in the first half of the year, attributed to strategic hires and enhanced focus on Member experiences.
In light of these developments, Hagerty has revised its full-year forecasts upward. The company now expects revenue to range between $1.16 billion and $1.18 billion, with net income expected to range between $76 million and $84 million. Adjusted EBITDA forecasts range from $130 million to $140 million, indicating a positive trajectory for the company in the vibrant collector car market. Despite the volatile interest rate environment, Hagerty remains optimistic about its financial performance, supported by its clear strategy and strong market position.
InvestingPro Insights
To provide additional context on Robert I. Kaufman’s recent stock sales, let’s examine some key financial metrics and insights from InvestingPro for Hagerty, Inc. (NYSE:HGTY).
According to InvestingPro data, Hagerty’s market cap is $3.55 billion. The company has shown strong revenue growth, with a 23.75% increase over the past 12 months as of Q2 2023, reaching $1.11 billion. This growth trend is further supported by a 19.9% quarterly revenue increase in Q2 2023.
InvestingPro’s advice suggests that Hagerty is trading at a low P/E ratio compared to its near-term earnings growth, suggesting a potential decline in its value. This is particularly interesting given Kaufman’s recent stock sales, because it may imply that the manager’s transactions are not necessarily indicative of the company’s growth prospects.
Another related InvestingPro tip notes that analysts expect the company to be profitable this year. This is consistent with notable revenue growth and could explain why there is optimism about Hagerty’s financial performance, despite the insider sale.
It is worth noting that Hagerty stock saw a 12.73% decline over the past month, which coincides with the timing of Kaufman’s sales. However, the YTD total price return remains positive at 33.59%, indicating an overall strong performance in 2023.
For investors looking for a more comprehensive analysis, InvestingPro offers additional tips and insights, with 8 additional Hagerty tips available on the platform.
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