Hagerty Inc Class A (HGTY) AI Stock Analysis

• Market Cap: $4.43B
• Dividend Yield: N/A
• Average Volume (3M): 128.97K
• Price to Earnings (P/E): 46.3
• Beta (1Y): 0.61
• 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: 165,824
• 30 Day Avg. Volume: 128,967
• 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: 1.11
• Enterprise Value/Revenue: 3.61
• Enterprise Value/Gross Profit: 5.29
• Enterprise Value/Ebitda: 32.67
• 1Y Price Target: $13.88
• Price Target Upside: 5.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.36
• Revenue Forecast (FY): $1.38B

• Rating: 73 Outperform
• Price Target: $14.50 ▲(9.77% Upside)

Hagerty Inc Class A's strong financial performance and positive earnings call sentiment are the primary drivers of its score. The technical analysis supports a bullish outlook, although valuation concerns due to a high P/E ratio and no dividend yield temper the overall score. The absence of notable corporate events does not impact the assessment.

Positive Factors

Revenue Growth

The 18% revenue growth reflects strong market demand and effective business strategies, indicating a robust long-term growth trajectory.

Strategic Partnerships

Partnerships with major insurers like Liberty Mutual enhance distribution channels, potentially increasing market share and customer base.

Profitability Improvement

Improved operating margins demonstrate enhanced operational efficiency, supporting sustainable profitability and competitive positioning.

Negative Factors

Higher Expenses

Rising expenses can pressure margins and profitability, requiring careful cost management to maintain financial health.

Cash Flow Concerns

Declining free cash flow may limit investment capacity and debt servicing ability, impacting long-term financial flexibility.

Attach Rate Issues

Lower attach rates could hinder customer acquisition and retention efforts, affecting revenue growth from strategic partnerships.

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	540.88M	313.48M	499.55M
EBITDA	150.26M	132.59M	90.58M	0.00	-32.46M	27.65M
Net Income	43.30M	17.02M	20.23M	4.08M	-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	154.86M	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	234.98M	175.54M	59.25M	-323.78M	117.20M
Cash Flow
Free Cash Flow	154.70M	155.68M	107.30M	10.95M	-1.09M	46.32M
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: Positive
• Last Price: 13.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGTY, the sentiment is Positive. The current price of 13.21 is above the 20-day moving average (MA) of 11.51, above the 50-day MA of 11.91, and above the 200-day MA of 10.32, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 72.01 is Negative, neither overbought nor oversold. The STOCH value of 95.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$3.43B	20.60	22.24%	―	54.41%	52.71%
MCY	78 Outperform	$4.76B	10.84	21.47%	1.67%	6.18%	-21.28%
SIGI	74 Outperform	$4.75B	12.10	12.22%	1.99%	10.98%	74.87%
HGTY	73 Outperform	$4.43B	46.30	16.42%	―	17.47%	54.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KMPR	58 Neutral	$2.17B	9.66	9.03%	2.90%	4.51%	-8.29%
LMND	53 Neutral	$5.61B	―	-31.34%	―	30.53%	21.82%

Hagerty Inc Class A Corporate Events

Hagerty Inc. Reports Strong Q3 2025 Performance

Hagerty, Inc. is a leading automotive enthusiast brand and specialty vehicle insurance provider, known for its commitment to preserving car culture and offering a range of services including car valuation, auctions, and events for car enthusiasts. In its third quarter of 2025, Hagerty reported a significant increase in financial performance, with total revenue rising by 18% year-over-year to $380 million and net income surging by 143% to $46.2 million. The company also saw a 106% increase in adjusted EBITDA, reaching $49.7 million, and announced a new partnership with Liberty Mutual, enhancing its strategic positioning in the market. Key highlights from the report include a 58% increase in marketplace revenue and a 16% rise in written premiums, underscoring the company’s robust growth trajectory. Hagerty’s management has raised its full-year 2025 outlook, anticipating total revenue growth of 14-15% and net income growth of 58-65%, reflecting confidence in sustained growth and margin expansion through strategic investments and partnerships.

Hagerty Inc’s Earnings Call: Strong Growth Amid Challenges

The recent earnings call for Hagerty Inc Class A painted a picture of robust growth and profitability, tempered by some challenges. The company demonstrated strong revenue growth and profitability, driven by strategic partnerships and marketplace expansion. However, concerns were raised regarding increased expenses and lower attach rates for new partnerships, alongside the impact of business seasonality on profitability forecasts.

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.

Hagerty Inc Class A Announces Secondary Offering Pricing

On August 7, 2025, Hagerty, Inc. announced the pricing of its upsized secondary offering of 9,700,000 shares of Class A Common Stock at $9.34 per share, with the offering closing on August 11, 2025. The selling stockholders, Hagerty Holding Corp. and Aldel LLC, will not pass proceeds to Hagerty, as they will use the net proceeds to redeem shares for the benefit of Kim Hagerty’s estate. The offering, managed by Keefe, Bruyette & Woods and J.P. Morgan, highlights Hagerty’s strategic financial maneuvers but does not directly impact its operational cash flow.

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.