Hagerty Inc Class A (HGTY) AI Stock Analysis

• Market Cap: $4.33B
• Dividend Yield: N/A
• Average Volume (3M): 114.25K
• Price to Earnings (P/E): 44.8
• Beta (1Y): 0.62
• Revenue Growth: 17.47%
• EPS Growth: 54.19%
• Country: US
• Employees: 1,733
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.13
• Shares Outstanding: 100,511,894
• 10 Day Avg. Volume: 121,833
• 30 Day Avg. Volume: 114,248
• PEG Ratio: -0.67
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 5.43
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: 6.25
• 1Y Price Target: $13.50
• Price Target Upside: 6.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $14.50 ▲(14.53% Upside)

The score is driven primarily by solid financial performance (strong margins and cash generation) and supportive technicals (price above major moving averages with positive MACD). This is tempered by a high valuation (P/E 46.09). The latest earnings call adds support via raised outlook and strong profitability, though expense growth and attach-rate/seasonality risks remain.

Positive Factors

Strategic Partnerships

These partnerships enhance Hagerty's distribution network, potentially increasing customer reach and solidifying market position in the specialty insurance sector.

Revenue Growth

Strong revenue growth indicates effective market expansion and product adoption, supporting long-term financial health and operational scalability.

Profitability Improvements

Improved profitability through margin expansion suggests efficient cost management and operational effectiveness, enhancing long-term financial sustainability.

Negative Factors

Higher Expenses

Rising expenses can pressure profit margins and cash flow, potentially limiting investment in growth initiatives if not managed effectively.

Lower Attach Rates

Lower attach rates may hinder revenue growth from partnerships, affecting the company's ability to fully capitalize on new customer acquisition channels.

Equity Ratio Concerns

A low equity ratio indicates potential vulnerability to financial instability if leverage increases, which could impact long-term resilience and investment capacity.

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, YouTube channel; HDC that offers subscription based products and services, including HDC Magazine, automotive enthusiast events, proprietary vehicle valuation tools, emergency roadside services, and special vehicle-related discounts; HVT, a valuation tool used by the customer to access current and historic pricing data of collector car, truck, SUV, and motorcycle models; and Hagerty Events, an eclectic mix of small and large events. In addition, it offers DriveShare, a peer-to-peer rental platform for collector and cool vehicles; Motorsport Reg, a motorsport membership, licensing, and event online management system that automates event listings, registration, and payment processing for various motorsport events; and Hagerty Garage + Social, a platform that provides clubhouses and car storage facilities. The company is headquartered in Traverse City, Michigan.

How the Company Makes Money

Hagerty generates revenue through several key streams. The primary source is the insurance premiums collected from policyholders who insure their classic and collectible vehicles. This includes both standard and specialized coverage options tailored to the unique needs of collectors. Additionally, Hagerty earns revenue from its valuation services, which help clients determine the worth of their vehicles for insurance and sale purposes. The company also benefits from partnerships with automotive-related businesses and events, further enhancing its brand visibility and customer engagement. Furthermore, Hagerty's online platform and publications create additional revenue opportunities through advertising and affiliate marketing, solidifying its position within the automotive enthusiast community.

Hagerty Inc Class A Financial Statement Overview

Summary

Hagerty Inc Class A demonstrates solid financial health with strong profitability, efficient cash generation, and a balanced leverage position. While revenue growth has slowed, profitability metrics remain strong. The balance sheet is stable, though a higher equity ratio would enhance financial resilience. Cash flow performance is robust, supporting the company's operational and strategic initiatives.

Income Statement

Hagerty Inc Class A shows a strong gross profit margin of 80.52% TTM, indicating efficient cost management. The net profit margin improved to 5.79% TTM, reflecting enhanced profitability. Revenue growth is steady at 4.32% TTM, though it has slowed compared to previous years. EBIT and EBITDA margins are healthy at 9.00% and 12.23% TTM, respectively, showing operational efficiency. Overall, the income statement reflects solid profitability and growth, albeit with a slight deceleration in revenue growth.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.13 TTM, indicating a balanced leverage position. Return on equity is robust at 47.89% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 13.77% TTM, suggesting a relatively low proportion of equity in the asset base, which could pose a risk if leverage increases. Overall, the balance sheet is stable but could benefit from a stronger equity position.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 17.62% TTM, highlighting improved cash generation. The free cash flow to net income ratio is high at 86.26% TTM, indicating efficient conversion of income into cash. However, the operating cash flow to net income ratio is not available, which limits a full assessment. Overall, cash flow is strong, with significant free cash flow growth supporting financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.19B	1.01B	829.49M	576.54M	499.55M
Gross Profit	927.46M	591.18M	539.29M	455.94M	313.48M	499.55M
EBITDA	150.26M	132.59M	90.58M	44.98M	-32.46M	27.65M
Net Income	43.30M	17.02M	20.23M	32.08M	-46.36M	10.17M
Balance Sheet
Total Assets	2.15B	1.71B	1.59B	1.31B	1.04B	610.71M
Cash, Cash Equivalents and Short-Term Investments	332.65M	178.74M	108.33M	95.17M	275.33M	38.11M
Total Debt	113.63M	148.15M	181.14M	196.61M	135.50M	69.00M
Total Liabilities	1.44B	1.19B	1.09B	945.15M	771.07M	493.39M
Stockholders Equity	296.37M	150.32M	175.54M	59.25M	-323.78M	117.20M
Cash Flow
Free Cash Flow	154.70M	155.68M	107.30M	10.95M	-1.09M	46.31M
Operating Cash Flow	177.27M	177.02M	133.71M	55.33M	42.28M	84.57M
Investing Cash Flow	-178.88M	-618.56M	-52.65M	-91.52M	-68.99M	-47.39M
Financing Cash Flow	10.61M	-46.92M	103.16M	-28.08M	332.07M	39.95M

Hagerty Inc Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGTY, the sentiment is Neutral. The current price of 12.66 is below the 20-day moving average (MA) of 13.15, below the 50-day MA of 12.99, and above the 200-day MA of 11.06, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 21.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HGTY.

Hagerty Inc Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLMR	83 Outperform	$3.45B	20.34	22.24%	―	54.41%	52.71%
SIGI	77 Outperform	$4.97B	12.67	12.22%	1.85%	10.98%	74.87%
HGTY	69 Neutral	$4.33B	44.76	16.42%	―	17.47%	54.19%
MCY	69 Neutral	$4.98B	11.33	21.47%	1.34%	6.18%	-21.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LMND	57 Neutral	$6.06B	-33.75	-31.34%	―	30.53%	21.82%
KMPR	52 Neutral	$2.26B	10.09	9.03%	3.15%	4.51%	-8.29%

Hagerty Inc Class A Corporate Events

Hagerty Reshapes Markel Partnership With New Essentia Agreements

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 collaboration. The parties extended their master relationship through December 31, 2028, preserved Hagerty’s option (via OpCo) to acquire Essentia Insurance Company between January 1, 2026 and January 1, 2028, and removed several restrictive and exclusivity covenants in both their master relationship and OpCo’s LLC agreement, potentially giving Hagerty and Markel greater strategic and business flexibility. At the same time, Hagerty Insurance Agency and Hagerty Reinsurance entered a new General Agency Agreement and a Quota Share Reinsurance Agreement with Essentia, effective January 1, 2026, under which Hagerty Re will assume 100% of the risk on specified Essentia policies while HIA gains expanded authority to produce, bind, service, and manage those policies, consolidating underwriting risk and administrative control within Hagerty’s structure.

The most recent analyst rating on (HGTY) stock is a Buy with a $13.50 price target. To see the full list of analyst forecasts on Hagerty Inc Class A stock, see the HGTY Stock Forecast page.

Hagerty Inc Reports Strong November 2025 Performance

In November 2025, Hagerty Inc Class A announced a successful year-to-date performance with a combined ratio under 90% and a revenue growth of 18%, translating to a net income growth of 73%. The company highlighted its strategic initiatives, including the launch of the Guardian Safe Storage Concierge program and significant partnerships with State Farm and Safeco, which are expected to drive future growth and solidify its leadership in the collectible vehicle insurance market.

The most recent analyst rating on (HGTY) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Hagerty Inc Class A stock, see the HGTY Stock Forecast page.