In a recent series of transactions, Robert I. Kauffman, a director at Hagerty, Inc. (NYSE:HGTY), an insurance services firm, sold a total of $88,875 worth of company stock. The sales took place over three consecutive days, with the share price for each transaction fixed at $9.0.
On March 12, 2024, Kauffman sold 2,529 shares, followed by a sale of 5,729 shares on March 13, and finally, 1,617 shares on March 14. These sales were conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of material non-public information.
The transactions were made indirectly through Aldel LLC, where Kauffman serves as the manager with voting and investment discretion over the securities held by the firm. Despite his position, Kauffman disclaims beneficial ownership of the reported securities except to the extent of his pecuniary interest.
Following these transactions, Kauffman indirectly retains a substantial holding of 3,454,440 shares in Hagerty, Inc. through Aldel LLC. The sales reported are a part of routine disclosures made by company insiders, providing transparency into their trading activities in the company's stock.
InvestingPro Insights
Amid the recent insider trading activity at Hagerty, Inc., investors are closely monitoring the company's performance metrics and market sentiments. Real-time data from InvestingPro offers a snapshot of the company's financial health and market position.
According to InvestingPro Data, Hagerty has a market capitalization of approximately $240.15 million USD, indicating its size in the insurance services sector. The company's Price-to-Earnings (P/E) Ratio stands at 4.52, which is adjusted to 4.99 when considering the last twelve months as of Q4 2023. This suggests that Hagerty's shares are trading at a lower earnings multiple compared to the industry average, potentially signaling an undervalued stock. Additionally, the company has experienced a significant revenue growth of 11.03% over the last twelve months, reflecting a positive trend in its business operations.
InvestingPro Tips for Hagerty highlight several key points for potential investors. The company is expected to see net income growth this year, which may be an attractive point for those looking for companies with an upward earnings trajectory. Furthermore, Hagerty has demonstrated a strong return over the last month, with a 35.81% price total return, which could be indicative of robust investor confidence and momentum in the stock's performance.
However, it's important to note that Hagerty is quickly burning through cash and suffers from weak gross profit margins, as per InvestingPro Tips. These factors could present challenges for the company in the short term and may require strategic management attention. Additionally, the company does not pay a dividend to shareholders, which might be a consideration for income-focused investors.
For those interested in a deeper analysis, there are 11 additional InvestingPro Tips available for Hagerty, which could offer further insights into the company's financial and market performance. Investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, providing access to a wealth of investment tools and data to inform their decisions.
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