Hagerty Inc Class A (HGTY) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: N/A
• Average Volume (3M): 82.66K
• Price to Earnings (P/E): 48.0
• Beta (1Y): 0.60
• Revenue Growth: 17.56%
• EPS Growth: 29.28%
• Country: US
• Employees: 1,733
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.08
• Shares Outstanding: 90,715,645
• 10 Day Avg. Volume: 90,208
• 30 Day Avg. Volume: 82,663
• PEG Ratio: 0.12
• Price to Book (P/B): 5.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.46
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: 2.29
• 1Y Price Target: $11.00
• Price Target Upside: 8.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $11.50 ▲(13.19%Upside)

Hagerty Inc Class A demonstrates strong financial performance and positive strategic initiatives, contributing to a solid score. However, high valuation metrics and potential overbought technical indicators temper the overall outlook. The positive earnings call and recent corporate events highlight growth potential, but challenges such as slower customer acquisition and high initial technology costs should be monitored.

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 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 is performing well with strong revenue and profit growth, improved margins, and robust cash flows. The balance sheet indicates a low leverage position, which reduces financial risk. However, the decline in stockholders' equity and relatively low EBIT margin suggest potential areas 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20B	1.01B	829.49M	576.54M	499.55M
Gross Profit	978.58M	574.20M	540.88M	404.64M	271.02M
EBITDA	93.68M	69.04M	0.00	-32.46M	27.65M
Net Income	17.02M	20.23M	4.08M	-61.35M	10.17M
Balance Sheet
Total Assets	1.71B	1.59B	1.31B	1.04B	610.71M
Cash, Cash Equivalents and Short-Term Investments	232.84M	108.33M	95.17M	275.33M	38.11M
Total Debt	148.15M	181.14M	196.61M	135.50M	69.00M
Total Liabilities	1.19B	1.09B	945.15M	771.07M	493.39M
Stockholders Equity	150.32M	175.54M	59.25M	-323.78M	117.20M
Cash Flow
Free Cash Flow	155.68M	107.30M	10.95M	-1.09M	46.32M
Operating Cash Flow	177.02M	133.71M	55.33M	42.28M	84.57M
Investing Cash Flow	-618.56M	-52.65M	-91.52M	-68.99M	-47.39M
Financing Cash Flow	-46.92M	103.16M	-28.08M	332.07M	39.95M

Hagerty Inc Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 10.16 is below the 20-day moving average (MA) of 10.20, above the 50-day MA of 9.93, and above the 200-day MA of 9.98, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 17.44 is Positive, 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	$3.48B	26.06	20.76%	―	46.90%	43.99%
HGTY	76 Outperform	$3.47B	47.99	12.50%	―	17.56%	29.28%
MCY	75 Outperform	$3.84B	9.83	21.56%	1.83%	14.93%	22.19%
ROOT	69 Neutral	$1.95B	40.24	17.95%	―	98.66%	―
Sector *	61 Neutral	C$14.99B	6.37	23.28%	5.57%	33.59%	-23.72%
KMPR	58 Neutral	$3.94B	11.52	12.57%	2.05%	-6.08%	―
LMND	50 Neutral	$2.76B	―	-35.57%	―	21.44%	2.99%

Hagerty Inc Class A Corporate Events

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.

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. 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.