Hagerty Inc Class A (HGTY)
NYSE:HGTY
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Hagerty Inc Class A
(NYSE:HGTY)
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Rating:61Neutral
Price Target:
$10.50
▼(-3.05% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid underlying financial quality (profitable since 2022 with consistently positive cash generation and a strengthened balance sheet) and a constructive earnings-call outlook (reaffirmed guidance with strong premium and EBITDA momentum). These positives are tempered by weak technicals (price below key moving averages and negative MACD) and unfavorable valuation signals in the provided data (negative P/E and no dividend yield provided).
Positive Factors
Cash generation
Consistent positive operating and free cash flow since 2022 provides durable financial flexibility. It supports investments in technology, auctions and distribution, funds the Markel transition timing effects, and reduces refinancing risk. Over 2–6 months this underpins ability to absorb seasonality and one-time GAAP impacts while funding growth initiatives.
Negative Factors
Revenue deceleration
A steep TTM revenue decline and margin compression reduce the company's earnings cushion and make profitability more sensitive to underwriting volatility or marketplace lumpiness. Sustained top-line weakness would constrain reinvestment, slow policy growth targets, and raise execution pressure on margin recovery over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow since 2022 provides durable financial flexibility. It supports investments in technology, auctions and distribution, funds the Markel transition timing effects, and reduces refinancing risk. Over 2–6 months this underpins ability to absorb seasonality and one-time GAAP impacts while funding growth initiatives.
Read all positive factors
Hagerty Inc Class A (HGTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.79B
Dividend YieldN/A
Average Volume (3M)114.25K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth13.84%
EPS Growth27.24%
CountryUS
Employees1,733
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.52
Shares Outstanding101,802,246
10 Day Avg. Volume121,833
30 Day Avg. Volume114,248
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)4.12
Price to Sales (P/S)0.87
P/FCF Ratio6.52
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue2.59
Enterprise Value/Gross Profit3.32
Enterprise Value/Ebitda29.81
Forecast
1Y Price Target
$12.33Price Target Upside13.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.05
Revenue Forecast (FY)$1.28B
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, YouT...
How the Company Makes Money
Hagerty makes money primarily through its specialty insurance operations and related membership/services revenue. A major revenue stream is insurance: Hagerty earns income associated with placing and servicing collector-vehicle insurance policies,...
Hagerty Inc Class A Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call communicated robust operational momentum: high single-digit to mid-teens premium growth, record new policy additions, a 77% increase in adjusted EBITDA, strong auction results, and a material structural improvement from assuming 100% of U.S. underwriting economics. The primary negatives are temporary GAAP and cash-flow impacts driven by the Markel fronting transition (notably an $89M deferred ceding commission amortization) and some marketplace revenue volatility and upfront investment/seasonality. Given management’s reaffirmed guidance and commentary that the GAAP hits will normalize by year-end, the positives outweigh the near-term accounting and timing headwinds.Positive Updates
Strong Written and Earned Premium Growth
Written premiums rose 18% year-over-year to $289 million in Q1 (ahead of full-year guidance of 15%-16%). Earned premium jumped 42% to $240 million, reflecting Hagerty Re assuming 100% of U.S. underwriting economics beginning 1/1/2026. Policy count additions were a record 112,000 in Q1 and PIF growth jumped 15% with retention steady at an industry-leading 89%.
Negative Updates
GAAP Accounting Headwinds from Deferred Ceding Commissions
Q1 included $89 million of amortization of deferred ceding commissions (from pre-2026 policies), which drove GAAP revenue lower (reported revenue down 5%) and materially affected GAAP profitability. Management states this amortization will burn off by year-end 2026, but it produced a near-term GAAP hit.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Written and Earned Premium Growth
Written premiums rose 18% year-over-year to $289 million in Q1 (ahead of full-year guidance of 15%-16%). Earned premium jumped 42% to $240 million, reflecting Hagerty Re assuming 100% of U.S. underwriting economics beginning 1/1/2026. Policy count additions were a record 112,000 in Q1 and PIF growth jumped 15% with retention steady at an industry-leading 89%.
Read all positive updates
Company Guidance
Hagerty reaffirmed its full‑year 2026 guidance — written premium growth of 15%–16%, adjusted EBITDA of $236M–$247M and a GAAP net loss of $41M–$51M — and said it is trending toward the high end of those ranges. Management cited a strong Q1 that supports the outlook: written premium +18% to $289M, earned premium +42% to $240M, adjusted EBITDA +77% to $85M, GAAP net loss of $13M (impacted by $89M of deferred ceding‑commission amortization that winds down by year‑end), PIF growth +15% with retention at 89%, Hagerty Re combined ratio ~87% and a $6M reserve reduction; operating cash flow was $16M (versus $44M prior year). They also reiterated expectations for mid‑teens written premium growth in 2027 as State Farm conversions scale (selling in ~40 states by year‑end and converting most of ~525K policies by end‑2027), and noted balance‑sheet totals of $212M unrestricted cash, >$1.1B investments and $229M total debt.Hagerty Inc Class A Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
68
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.42B | 1.46B | 1.19B | 1.01B | 829.49M | 576.54M |
| Gross Profit | 1.11B | 1.17B | 892.90M | 791.10M | 455.94M | 313.48M |
| EBITDA | 123.20M | 176.71M | 132.59M | 90.58M | 44.98M | -32.46M |
| Net Income | 36.16M | 49.02M | 17.02M | 20.23M | 32.08M | -46.36M |
Balance Sheet | ||||||
| Total Assets | 1.98B | 2.07B | 1.67B | 1.56B | 1.29B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.04B | 299.00M | 232.84M | 724.28M | 539.19M | 603.97M |
| Total Debt | 279.14M | 232.57M | 198.04M | 238.10M | 277.38M | 126.43M |
| Total Liabilities | 1.25B | 1.32B | 1.19B | 1.06B | 920.51M | 752.58M |
| Stockholders Equity | 307.33M | 307.93M | 234.99M | 175.54M | 59.25M | -323.78M |
Cash Flow | ||||||
| Free Cash Flow | 164.55M | 194.45M | 155.68M | 118.55M | 10.95M | -1.09M |
| Operating Cash Flow | 191.41M | 218.99M | 177.02M | 144.95M | 55.33M | 42.28M |
| Investing Cash Flow | -220.64M | -185.20M | -618.56M | -51.87M | -91.52M | -68.99M |
| Financing Cash Flow | 106.72M | 29.93M | -46.92M | 91.14M | -28.08M | 332.07M |
Hagerty Inc Class A Technical Analysis
Neutral
10.83
Price Trends
10.57
Positive
11.35
Negative
11.73
Negative
Market Momentum
0.06
Negative
58.68
Neutral
88.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGTY, the sentiment is Neutral. The current price of 10.83 is above the 20-day moving average (MA) of 10.43, above the 50-day MA of 10.57, and below the 200-day MA of 11.73, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 88.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HGTY.
Hagerty Inc Class A Risk Analysis
Hagerty Inc Class A disclosed 73 risk factors in its most recent earnings report. Hagerty Inc Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hagerty Inc Class A Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.34B | 11.67 | 12.93% | 1.85% | 8.76% | 99.32% | |
78 Outperform | $5.70B | 6.41 | 36.48% | 1.34% | 9.70% | 193.37% | |
71 Outperform | $3.07B | 18.48 | 21.74% | ― | 60.95% | 43.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $3.79B | -59.22 | 14.47% | ― | 13.84% | 27.24% | |
55 Neutral | $1.74B | -264.26 | 1.52% | 3.15% | 0.51% | -88.36% | |
52 Neutral | $4.41B | ― | -26.52% | ― | 57.13% | 38.73% |
* Financial Sector Average
HGTY
Hagerty Inc Class A
10.95
1.76
19.15%
MCY
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102.34
43.39
73.60%
SIGI
Selective Insurance Group
90.69
5.86
6.91%
KMPR
Kemper
29.66
-30.20
-50.45%
PLMR
Palomar Holdings
115.00
-45.82
-28.49%
LMND
Lemonade
57.05
26.14
84.57%
Hagerty Inc Class A Corporate Events
Business Operations and StrategyFinancial Disclosures
Hagerty Highlights Strong Q1 Growth and Updated Investor Presentation
Positive
May 6, 2026
Hagerty Inc., a leading specialty insurer for classic and collectible vehicles and operator of automotive events and auctions, reported that insurance remains its core growth engine, with 1.8 million policies in force and industry-leading 89% memb...
Executive/Board Changes
Hagerty Announces Board Resignation and New Markel Designee
Neutral
Apr 15, 2026
On April 13, 2026, Hagerty, Inc. announced that director Michael R. Heaton resigned from its Board of Directors, where he had served as Markel Group Inc.’s designee under an existing Investor Rights Agreement. The company stated his departur...
Business Operations and StrategyFinancial Disclosures
Hagerty Highlights Strong 2025 Growth and Profit Expansion
Positive
Feb 26, 2026
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 dist...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.