Hagerty Inc Class A (HGTY) AI Stock Analysis

• Market Cap: $3.70B
• Dividend Yield: N/A
• Average Volume (3M): 114.25K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.63
• Revenue Growth: 17.47%
• EPS Growth: 54.19%
• Country: US
• Employees: 1,733
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.08
• Shares Outstanding: 100,511,894
• 10 Day Avg. Volume: 121,833
• 30 Day Avg. Volume: 114,248
• PEG Ratio: 0.08
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 6.52
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 3.20
• Enterprise Value/Ebitda: 20.64
• 1Y Price Target: $14.00
• Price Target Upside: 32.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.3
• Revenue Forecast (FY): $1.42B

• Rating: 68 Neutral
• Price Target: $13.00 ▲(22.76% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is primarily supported by strong financial performance improvements in 2025 (higher profitability/cash flow and a debt-free balance sheet) and a positive earnings update with raised outlook. Offsetting this, technicals are currently weak (negative MACD and below key moving averages) and valuation is stretched with a high P/E and no dividend yield provided.

Positive Factors

De-risked balance sheet

Ending 2025 with no debt materially reduces financial leverage and interest burden, improving resiliency to underwriting cycles and funding flexibility. This durable improvement gives Hagerty capacity to invest in technology, acquisitions, and underwriting without near-term refinancing risk.

Strong cash generation

Sustained and meaningful free cash flow supports self-funding for growth initiatives and underwriting needs. FCF tracking ~0.88x net income signals earnings quality and gives the company durable capital to reinvest in member services, marketplace expansion, and technology upgrades.

Expanded distribution and partnerships

Securing a 100% quota share / fronting evolution and new distribution partnerships (e.g., Liberty Mutual, Safeco, State Farm rollouts) enhances control of underwriting economics and broadens customer access. These structural changes should sustainably boost margins and scale premiums if execution holds.

Negative Factors

Profitability volatility history

Prior loss years and multi-year margin variability indicate earnings are not fully cycle-proven. A single step-up in 2025 improves metrics, but underwriters and investors face the risk that adverse loss experience, conversion challenges, or competitive pricing could reintroduce margin pressure over the next several quarters.

Low attach rates on State Farm conversions

Weaker-than-expected attach rates on a key distribution channel structurally constrain membership growth and recurring revenue from cross-sells. Persistently lower attach performance would slow policies-in-force scaling, reduce lifetime customer economics, and limit the expected compounding benefits of broad partnerships.

Rising operating expenses

Increased G&A and tech spending can structurally compress margins if efficiency gains lag. While investments aim to drive scale, elevated ongoing costs create a durable drag on profitability until productivity and conversion improvements consistently outpace incremental spending.

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

Strong 2025 step-up in profitability and cash generation alongside a materially de-risked balance sheet (debt reduced to $0 and higher equity). Key offset is historical volatility (losses in 2021 and thinner margins/cash flow in 2022–2024), so the improved profile is positive but not yet fully cycle-proven.

Income Statement

Revenue has grown consistently from 2020–2025, with 2025 showing solid growth (~7.1%) on a much larger base. Profitability has improved materially versus the 2021 loss year, with 2025 net margin rising to ~8.9% and EBITDA margin to ~14.9%. The main weakness is volatility across the period (losses in 2021 and thin margins in 2022–2024), suggesting profitability is improving but not yet fully proven as stable through cycles.

Balance Sheet

Leverage and capitalization improved sharply: total debt drops to $0 in 2025 from ~$148M in 2024, and equity increases to ~$221M (from ~$150M in 2024). Earlier years show meaningful balance-sheet risk (negative equity in 2021 and high debt-to-equity in 2022–2023), but the latest snapshot is notably stronger with low financial risk. A caution is that returns on equity are unusually high in 2025, which can reflect a step-change year and may not be fully repeatable.

Cash Flow

Cash generation is strong and improving: operating cash flow rises to ~$219M and free cash flow to ~$194M in 2025, with free cash flow growth of ~25.7%. Free cash flow consistently tracks a large portion of earnings (about ~0.88x net income in 2024–2025), supporting earnings quality. The key weakness is that free cash flow was negative in 2021 and relatively low in 2022, indicating the cash profile has improved meaningfully but has shown past variability.

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

• Technical Analysis Sentiment: Negative
• Last Price: 10.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10.59 is below the 20-day moving average (MA) of 11.80, below the 50-day MA of 12.48, and below the 200-day MA of 11.58, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 33.62 is Neutral, neither overbought nor oversold. The STOCH value of 15.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HGTY.

Hagerty Inc Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGI	77 Outperform	$5.04B	10.96	13.86%	1.85%	10.98%	74.87%
PLMR	77 Outperform	$3.33B	18.22	23.58%	―	54.41%	52.71%
MCY	74 Outperform	$5.06B	9.63	24.80%	1.34%	6.18%	-21.28%
HGTY	68 Neutral	$3.70B	25.88	16.42%	―	17.47%	54.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
KMPR	56 Neutral	$1.90B	17.54	9.03%	3.15%	4.51%	-8.29%
LMND	50 Neutral	$4.18B	-30.89	-29.37%	―	30.53%	21.82%

Hagerty Inc Class A Corporate Events

Hagerty Highlights Strong 2025 Growth and Profit Expansion

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 distribution strategy, auctions, private sales and financing, targeting tens of millions of auto enthusiasts and aiming to double its policies in force to 3 million by 2030.

Hagerty reported that 2025 was a year of strong execution, with 17% top-line growth, a 91% increase in net income and record new business including 371,000 new members added. The company highlighted key 2025 milestones such as expanding its State Farm Classic+ rollout, launching new products like Enthusiast+, growing Broad Arrow Auctions to the No. 2 global player with $624 million in transaction value, and renegotiating its Markel arrangement to capture 100% of premiums, which is expected to materially boost underwriting profits and margins from 2026.

Looking ahead, Hagerty signaled plans for mid-teens written premium growth and further margin expansion in 2026, supported by continued technology investment, broader State Farm conversions and the new fronting structure with Markel. Management framed these steps as part of a disciplined, member-focused strategy to compound profits over the long term while scaling globally, enhancing control over underwriting economics and deepening its reach into the 36 million–plus target market of auto enthusiasts.

The most recent analyst rating on (HGTY) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Hagerty Inc Class A stock, see the HGTY Stock Forecast page.

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.