Hagerty Inc Class A (HGTY) AI Stock Analysis

• Market Cap: $3.23B
• Dividend Yield: N/A
• Average Volume (3M): 72.46K
• Price to Earnings (P/E): 44.7
• Beta (1Y): 0.58
• Revenue Growth: 17.56%
• EPS Growth: 29.28%
• Country: US
• Employees: 1,733
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.08
• Shares Outstanding: 90,715,645
• 10 Day Avg. Volume: 62,926
• 30 Day Avg. Volume: 72,459
• PEG Ratio: -3.90
• Price to Book (P/B): 7.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.73
• Enterprise Value/Market Cap: 0.25
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 0.86
• Enterprise Value/Ebitda: 1.94
• 1Y Price Target: $10.50
• Price Target Upside: 10.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: $11.00 ▲(16.28%Upside)

Hagerty Inc Class A receives a strong stock score driven by solid financial performance and a positive outlook from the latest earnings call. While the technical analysis and valuation suggest some caution, the company's strategic initiatives and growth plans in the insurance market position it well for future success.

Hagerty Inc Class A Business Overview & Revenue Model

Company Description

Hagerty Inc Class A (HGTY) is a specialty insurance provider that focuses on classic and collectible vehicles. The company offers a range of insurance products tailored to the needs of classic car enthusiasts, including coverage for vintage cars, classic motorcycles, and collector vehicles. In addition to insurance, Hagerty provides membership-based services that offer automotive enthusiasts access to exclusive events, publications, and resources that cater to their passion for classic cars.

How the Company Makes Money

Hagerty Inc generates revenue primarily through the sale of insurance policies for classic and collectible vehicles. The company earns premiums from policyholders who seek specialized coverage for their valuable automotive assets. Additionally, Hagerty benefits from membership fees associated with its Hagerty Drivers Club, which offers automotive enthusiasts a range of benefits, including roadside assistance, access to unique events, and subscription to the Hagerty magazine. The company's partnerships with automotive clubs, events, and other organizations in the classic car community also contribute to its earnings by expanding its reach and enhancing its brand presence in the marketplace.

Hagerty Inc Class A Financial Statement Overview

Summary

Hagerty Inc Class A has demonstrated strong financial performance with significant revenue growth and improved profit margins. The company shows robust cash generation capabilities and reduced leverage. However, there is room for improvement in operational efficiency and long-term equity growth.

Income Statement

Hagerty Inc Class A has demonstrated strong revenue growth, increasing from $397.3 million in 2019 to $1.2 billion in 2024. The gross profit margin has remained solid at approximately 81.5% in 2024, indicating efficient cost management. The net profit margin improved significantly to 9.1% in 2024, reflecting enhanced profitability. Despite this, the EBIT margin is relatively low at 5.5%, suggesting potential areas for operational efficiency improvements.

Balance Sheet

The company has a healthy equity ratio of 8.8% in 2024, indicating a strong asset base relative to liabilities. The debt-to-equity ratio has improved to 0.29, reflecting reduced leverage and financial risk. Return on equity has also increased to 72.6%, highlighting effective use of equity to generate profits. However, the overall stockholders' equity has decreased since 2019, which could be a concern for long-term financial stability.

Cash Flow

Free cash flow has grown steadily, reaching $155.7 million in 2024, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.62, indicating efficient conversion of profits into cash. However, the free cash flow to net income ratio is 1.43, suggesting some reinvestment or debt repayment constraints. The company needs to maintain this positive cash flow trajectory to support growth and stability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.25B	1.20B	1.01B	829.49M	576.54M	499.55M
	Gross Profit
940.25M	978.58M	574.20M	540.88M	404.64M	271.02M
	EBIT
87.70M	66.42M	10.41M	41.12M	-91.29M	15.85M
	EBITDA
104.17M	93.68M	69.04M	0.00	-32.46M	27.65M
	Net Income Common Stockholders
26.74M	17.02M	20.23M	4.08M	-61.35M	10.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
232.69M	232.84M	108.33M	95.17M	275.33M	38.11M
	Total Assets
1.82B	1.71B	1.59B	1.31B	1.04B	610.71M
	Total Debt
174.55M	148.15M	181.14M	196.61M	135.50M	69.00M
	Net Debt
46.85M	-189.67M	72.81M	101.44M	-139.83M	30.89M
	Total Liabilities
1.28B	1.19B	1.09B	945.15M	771.07M	493.39M
	Stockholders Equity
162.94M	150.32M	175.54M	59.25M	-323.78M	117.20M
Cash Flow		Free Cash Flow
140.42M	155.68M	107.30M	10.95M	-1.09M	46.32M
	Operating Cash Flow
162.62M	177.02M	133.71M	55.33M	42.28M	84.57M
	Investing Cash Flow
-604.76M	-618.56M	-52.65M	-91.52M	-68.99M	-47.39M
	Financing Cash Flow
4.55M	-46.92M	103.16M	-28.08M	332.07M	39.95M

Hagerty Inc Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.46
• 50DMA: Positive
• 100DMA: Positive
• 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 9.46 is below the 20-day moving average (MA) of 9.63, above the 50-day MA of 9.21, and below the 200-day MA of 10.13, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 9.23 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
PLMR	83 Outperform	$4.30B	32.14	20.76%	―	46.90%	43.99%
HGTY	77 Outperform	$3.23B	44.69	12.50%	―	17.56%	29.28%
MCY	75 Outperform	$3.57B	12.48	16.71%	1.97%	16.64%	33.06%
ROOT	72 Outperform	$2.36B	48.78	17.95%	―	98.66%	―
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
KMPR	58 Neutral	$4.04B	11.80	12.57%	2.03%	-6.08%	―
LMND	54 Neutral	$2.97B	―	-35.57%	―	21.44%	2.99%

Hagerty Inc Class A Corporate Events

Hagerty Inc. Elects Directors and Ratifies Auditor

On June 3, 2025, Hagerty, Inc. held its Annual Meeting of Stockholders where directors were elected for a one-year term, and the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 was ratified. The election of directors and the ratification of the accounting firm are expected to support the company’s governance and financial oversight, potentially impacting its operational stability and stakeholder confidence.

The most recent analyst rating on (HGTY) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Hagerty Inc Class A stock, see the HGTY Stock Forecast page.

Hagerty Inc Unveils Growth Strategies in Investor Presentation

On May 7, 2025, Hagerty Inc Class A announced an investor presentation on its website, highlighting its business model and growth strategies. The company emphasized its partnerships with top automotive insurers and the launch of a new collector car program in Illinois and Michigan. Hagerty plans to expand its State Farm Classic Plus program across the U.S. by 2026, adding approximately 525,000 policies. The company aims to double its policies by 2030, leveraging its strong customer retention and reputation in the classic car insurance market.