Hagerty Inc Class A (HGTY) AI Stock Analysis

• Market Cap: $4.26B
• Dividend Yield: N/A
• Average Volume (3M): 230.97K
• Price to Earnings (P/E): 60.7
• Beta (1Y): 0.65
• Revenue Growth: 17.25%
• EPS Growth: -11.72%
• Country: US
• Employees: 1,733
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.13
• Shares Outstanding: 90,942,220
• 10 Day Avg. Volume: 174,526
• 30 Day Avg. Volume: 230,970
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 10.02
• 1Y Price Target: $12.13
• Price Target Upside: -2.96% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $12.50 ▲(0.00% Upside)

Hagerty Inc Class A's overall stock score is driven by strong earnings performance and positive technical indicators. The company's financial health is solid, though cash flow management needs improvement. The high P/E ratio suggests the stock is expensive, which may deter value investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, enhancing long-term financial stability.

European Expansion

Successful European expansion diversifies revenue streams and strengthens Hagerty's position in the global classic car market.

New Fronting Arrangement

The new arrangement with Markel enhances profitability and operational control, supporting long-term financial performance.

Negative Factors

Cash Flow Concerns

Declining free cash flow may limit future investments and debt servicing, posing risks to financial flexibility and growth.

Below Expected Premium Growth

Underperformance in premium growth could indicate challenges in market penetration, impacting future revenue potential.

Increased Technology Costs

Rising technology costs may pressure short-term profitability, though they could enhance long-term operational efficiency.

Hagerty Inc Class A Business Overview & Revenue Model

Company Description

Hagerty Inc. (HGTY) is a leading provider of insurance and valuation services primarily focused on classic cars and other collectible vehicles. The company operates in the specialty insurance sector, offering coverage for vintage automobiles, motorcycles, and boats, as well as providing automotive valuation and advisory services. Hagerty is well-known for its deep expertise in the classic car market and its strong community engagement through events, publications, and an active online presence that caters to automotive enthusiasts.

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 consistent revenue growth and improved profitability margins. The balance sheet reflects reduced leverage and enhanced return on equity, contributing to financial stability. However, the decline in free cash flow growth and moderate cash flow ratios highlight areas for improvement in cash management.

Income Statement

Hagerty Inc Class A has shown consistent revenue growth, with a TTM revenue growth rate of 4.58%. The company maintains a strong gross profit margin of 80.52% and a healthy net profit margin of 5.79% in the TTM period. EBIT and EBITDA margins have improved over the years, indicating better operational efficiency. However, the net profit margin, while improved, remains modest, suggesting room for further profitability enhancement.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.24 in the TTM period, reflecting reduced leverage and better financial stability. Return on equity has surged to 47.89%, indicating strong profitability relative to shareholder equity. The equity ratio is moderate, suggesting a balanced capital structure. However, past high leverage levels pose a potential risk if not managed carefully.

Cash Flow

Hagerty Inc Class A's cash flow performance shows mixed results. The operating cash flow to net income ratio is 0.13, indicating moderate cash generation relative to net income. Free cash flow has decreased by 6.34% in the TTM period, which could be a concern for future investments and debt servicing. The free cash flow to net income ratio remains strong at 86.26%, suggesting efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.20B	1.01B	829.49M	576.54M	499.55M
Gross Profit	1.06B	978.58M	574.20M	540.88M	404.64M	271.02M
EBITDA	160.35M	132.59M	69.04M	0.00	-32.46M	27.65M
Net Income	75.89M	17.02M	20.23M	4.08M	-61.35M	10.17M
Balance Sheet
Total Assets	2.04B	1.71B	1.59B	1.31B	1.04B	610.71M
Cash, Cash Equivalents and Short-Term Investments	259.63M	232.84M	108.33M	95.17M	275.33M	38.11M
Total Debt	194.29M	154.86M	181.14M	196.61M	135.50M	69.00M
Total Liabilities	1.46B	1.19B	1.09B	945.15M	771.07M	493.39M
Stockholders Equity	172.28M	150.32M	175.54M	59.25M	-323.78M	117.20M
Cash Flow
Free Cash Flow	131.53M	155.68M	107.30M	10.95M	-1.09M	46.32M
Operating Cash Flow	152.48M	177.02M	133.71M	55.33M	42.28M	84.57M
Investing Cash Flow	-170.47M	-618.56M	-52.65M	-91.52M	-68.99M	-47.39M
Financing Cash Flow	33.34M	-46.92M	103.16M	-28.08M	332.07M	39.95M

Hagerty Inc Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 12.5 is above the 20-day moving average (MA) of 11.39, above the 50-day MA of 10.76, and above the 200-day MA of 10.02, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 69.78 is Neutral, neither overbought nor oversold. The STOCH value of 90.60 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	$3.18B	20.91	22.45%	―	52.60%	50.69%
MCY	79 Outperform	$4.38B	11.06	21.56%	1.61%	14.93%	22.19%
SIGI	75 Outperform	$4.75B	12.77	12.19%	1.95%	12.27%	66.53%
HGTY	74 Outperform	$4.26B	60.71	12.70%	―	17.25%	-11.72%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
KMPR	58 Neutral	$3.32B	9.98	12.21%	2.37%	2.75%	572.22%
LMND	55 Neutral	$3.63B	―	-35.10%	―	22.91%	4.95%

Hagerty Inc Class A Corporate Events

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.

Hagerty Inc Announces Secondary Public Offering

On August 6, 2025, Hagerty, Inc. announced a secondary public offering of 8,700,000 shares of its Class A Common Stock, facilitated by Aldel LLC and Hagerty Holding Corp. While Hagerty will not receive proceeds from this sale, the offering is intended to benefit the estate of Kim Hagerty through a redemption of shares. The announcement underscores Hagerty’s strategic financial maneuvers and may influence its market positioning and stakeholder interests.

Hagerty Inc Reports Strong Q2 2025 Financial Growth

On August 4, 2025, Hagerty Inc announced its tenth consecutive quarter of profitable growth, with a significant revenue increase of 18% to $688 million and a net income rise of 46% to $74 million in the first half of 2025. The company highlighted its expansion in the auction business through Broad Arrow Auctions, which has become the second-largest auction house in the premium segment globally. Notable events include successful auctions in Europe and an upcoming auction in the United States, showcasing Hagerty’s strategic growth and market leadership in the classic car industry.

Hagerty Inc Announces Fronting Arrangement with Markel

On July 24, 2025, Hagerty, Inc. announced a non-binding letter of intent for a proposed fronting arrangement with Markel Group Inc., expected to be effective on January 1, 2026. This arrangement will allow Hagerty to assume 100% of the underwriting and investment economics, enhancing profitability and operational control without disrupting policyholders. The agreement, subject to regulatory approval, marks an evolution of Hagerty’s partnership with Markel, with the company anticipating increased administrative responsibilities and a decrease in fronting fees based on policy volume.