Hagerty Inc Class A (HGTY)
NYSE:HGTY
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Hagerty Inc Class A
(NYSE:HGTY)
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Rating:73Outperform
Price Target:
$11.50
▲(10.68% Upside)
Action:UpgradedDate:03/28/26
The score is driven primarily by improved financial fundamentals (stronger profitability, strong free cash flow, and a significantly strengthened balance sheet). Offsetting this, technical signals remain weak with the stock below key moving averages and negative MACD, while valuation is only middling given the ~25.9 P/E and no dividend; corporate events are a supportive positive due to increased underwriting control and expected margin tailwinds.
Positive Factors
Balance sheet health
Leverage eliminated in 2025 and a meaningful equity build materially lower financial risk and increase capital flexibility. A debt-free balance sheet supports underwriting capacity, M&A optionality, and capacity to absorb reserve volatility, improving long-term resilience.
Negative Factors
Profitability volatility
Historic swings from losses to improved 2025 profitability indicate earnings sensitivity to underwriting cycles and scaling execution. Until multiple profitable years are delivered, margin durability and the company's ability to withstand underwriting shocks remain uncertain for the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet health
Leverage eliminated in 2025 and a meaningful equity build materially lower financial risk and increase capital flexibility. A debt-free balance sheet supports underwriting capacity, M&A optionality, and capacity to absorb reserve volatility, improving long-term resilience.
Read all positive factors
Hagerty Inc Class A (HGTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.56B
Dividend YieldN/A
Average Volume (3M)114.25K
Price to Earnings (P/E)25.9
Beta (1Y)0.65
Revenue Growth17.47%
EPS Growth54.19%
CountryUS
Employees1,733
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.08
Shares Outstanding101,066,536
10 Day Avg. Volume121,833
30 Day Avg. Volume114,248
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)4.12
Price to Sales (P/S)0.87
P/FCF Ratio6.52
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue2.45
Enterprise Value/Gross Profit3.06
Enterprise Value/Ebitda19.77
Forecast
1Y Price Target
$14.00Price Target Upside34.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.18
Revenue Forecast (FY)$1.28B
Hagerty Inc Class A Business Overview & Revenue Model
Company Description
Hagerty, Inc. provides insurance agency services worldwide. It offers automobile and boat insurance products; and reinsurance products. The company also provides Hagerty Media, which publishes contents through the HDC Magazine, video content, YouT...
How the Company Makes Money
Hagerty primarily generates revenue through its insurance operations and related services aimed at collector-vehicle owners. Key revenue streams include: (1) Insurance revenue: Hagerty earns revenue through its role in offering specialty auto insu...
Hagerty Inc Class A Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The earnings call showcased strong revenue growth and profitability with successful strategic partnerships and marketplace expansion. However, increased expenses and lower attach rates for new partnerships are concerns. The seasonality of the business also impacts profitability forecasts.Positive Updates
Record Revenue Growth
Total revenue increased by 18% to $380 million, driven by new business count gains, a 16% increase in written premium, and 18% growth in commission and fee revenue.
Negative Updates
Higher Expenses
General and administrative expenses increased by 17% due to higher software licensing costs and professional fees.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Revenue Growth
Total revenue increased by 18% to $380 million, driven by new business count gains, a 16% increase in written premium, and 18% growth in commission and fee revenue.
Read all positive updates
Company Guidance
During Hagerty's Third Quarter 2025 Earnings Call, the company provided robust guidance, highlighting an 18% increase in total revenue for the first nine months of the year. This growth was driven by a 13% rise in written premium and a 14% increase in commission revenue, largely due to ramped-up State Farm policy conversions. Hagerty also reported a significant 54% growth in membership, marketplace, and other revenue, fueled by the launch of their European auction business. On the profitability front, operating margins increased by 350 basis points, net income surged by 73% to $121 million, and adjusted EBITDA grew by 46% to $153 million. The company aims to double its policies in force to 3 million by 2030, leveraging its strong brand and high Net Promoter Score of 82. Hagerty's strategic priorities include expanding specialty insurance offerings, enhancing member experiences, and growing their international marketplace business. Additionally, the company announced a new partnership with Liberty Mutual and Safeco, marking a significant strategic development.Hagerty Inc Class A Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.46B | 1.19B | 1.01B | 829.49M | 576.54M |
| Gross Profit | 1.17B | 892.90M | 791.10M | 455.94M | 313.48M |
| EBITDA | 176.71M | 132.59M | 90.58M | 44.98M | -32.46M |
| Net Income | 49.02M | 17.02M | 20.23M | 32.08M | -46.36M |
Balance Sheet | |||||
| Total Assets | 2.07B | 1.67B | 1.56B | 1.29B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 299.00M | 232.84M | 724.28M | 539.19M | 603.97M |
| Total Debt | 232.57M | 198.04M | 238.10M | 277.38M | 126.43M |
| Total Liabilities | 1.32B | 1.08B | 1.06B | 920.51M | 752.58M |
| Stockholders Equity | 307.93M | 234.99M | 175.54M | 59.25M | -323.78M |
Cash Flow | |||||
| Free Cash Flow | 194.45M | 155.68M | 118.55M | 10.95M | -1.09M |
| Operating Cash Flow | 218.99M | 177.02M | 144.95M | 55.33M | 42.28M |
| Investing Cash Flow | -185.20M | -618.56M | -51.87M | -91.52M | -68.99M |
| Financing Cash Flow | 29.93M | -46.92M | 91.14M | -28.08M | 332.07M |
Hagerty Inc Class A Technical Analysis
Negative
10.39
Price Trends
11.49
Negative
12.24
Negative
11.63
Negative
Market Momentum
-0.27
Negative
41.48
Neutral
64.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGTY, the sentiment is Negative. The current price of 10.39 is above the 20-day moving average (MA) of 10.37, below the 50-day MA of 11.49, and below the 200-day MA of 11.63, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 64.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HGTY.
Hagerty Inc Class A Risk Analysis
Hagerty Inc Class A disclosed 73 risk factors in its most recent earnings report. Hagerty Inc Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hagerty Inc Class A Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.49B | 10.96 | 13.59% | 1.85% | 10.98% | 74.87% | |
77 Outperform | $3.12B | 18.22 | 22.79% | ― | 54.41% | 52.71% | |
74 Outperform | $4.76B | 9.63 | 25.65% | 1.34% | 6.18% | -21.28% | |
73 Outperform | $3.56B | 25.88 | 22.94% | ― | 17.47% | 54.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $4.64B | -30.89 | -31.19% | ― | 30.53% | 21.82% | |
56 Neutral | $1.76B | -74.49 | 9.03% | 3.15% | 4.51% | -8.29% |
* Financial Sector Average
HGTY
Hagerty Inc Class A
10.39
1.35
14.93%
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86.02
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PLMR
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LMND
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Hagerty Inc Class A Corporate Events
Business Operations and StrategyFinancial Disclosures
Hagerty Highlights Strong 2025 Growth and Profit Expansion
Positive
Feb 26, 2026
Hagerty Inc. operates in the specialty automotive insurance and enthusiast services market, focusing on classic, collectible and enthusiast vehicles for a global base of car lovers. The company combines insurance products with an omni-channel dist...
Business Operations and Strategy
Hagerty Reshapes Markel Partnership With New Essentia Agreements
Positive
Jan 2, 2026
On December 31, 2025, Hagerty, Inc. and key affiliates, together with strategic partner Markel Group, completed a previously announced fronting arrangement by amending and entering a series of core agreements that reshape their long-term collabora...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.