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Hagerty Inc Class A
(NYSE:HGTY)
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Rating:67Neutral
Price Target:
$13.50
▲(24.65% Upside)
Action:Reiterated
Date:06/13/26
The score is supported most by improving multi-year financial quality (profitability, cash generation, and a healthier balance sheet) and a constructive earnings call with reaffirmed guidance and strong underwriting/EBITDA momentum. It is held back by TTM financial deceleration versus 2025 and a relatively high P/E, while technicals are only moderately positive (short-term strength but weaker long-term trend).
Positive Factors
Top-line Growth & Distribution
Sustained premium and policy growth, plus industry-leading 89% retention, indicate durable demand in the collector-insurance niche. Strong new-business flow and retention expand lifetime customer value and create a reliable recurring revenue base, supporting multi-year premium momentum.
Negative Factors
TTM Revenue and Margin Deceleration
Trailing-twelve-month revenue decline and compressed margins represent a meaningful slowdown from 2025 levels. If sustained, lower growth and profitability reduce reinvestment capacity and make the business more sensitive to underwriting or market shocks across the 2–6 month horizon and beyond.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line Growth & Distribution
Sustained premium and policy growth, plus industry-leading 89% retention, indicate durable demand in the collector-insurance niche. Strong new-business flow and retention expand lifetime customer value and create a reliable recurring revenue base, supporting multi-year premium momentum.
Read all positive factors
Hagerty Inc Class A (HGTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.20B
Dividend YieldN/A
Average Volume (3M)114.25K
Price to Earnings (P/E)23.4
Beta (1Y)0.57
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 Ratio0.09
Price to Book (P/B)4.12
Price to Sales (P/S)0.87
P/FCF Ratio6.52
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue2.56
Enterprise Value/Gross Profit3.28
Enterprise Value/Ebitda29.47
Forecast
1Y Price Target
$11.97Price Target Upside10.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.1
Revenue Forecast (FY)$1.30B
Hagerty Inc Class A Business Overview & Revenue Model
Company Description
Hagerty, Inc. operates globally, serving as an insurance agency that specializes in policies for automobiles and boats, in addition to offering reinsurance products. Beyond its core insurance offerings, the company provides a suite of services and...
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 | 2.02B | 2.07B | 1.67B | 1.56B | 1.29B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 476.32M | 299.00M | 232.84M | 724.28M | 539.19M | 603.97M |
| Total Debt | 317.26M | 232.57M | 198.04M | 238.10M | 277.38M | 126.43M |
| Total Liabilities | 1.38B | 1.32B | 1.19B | 1.06B | 920.51M | 752.58M |
| Stockholders Equity | 218.68M | 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
Positive
10.83
Price Trends
10.84
Positive
10.83
Positive
11.66
Positive
Market Momentum
0.44
Negative
66.26
Neutral
75.81
Neutral
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 10.83 is below the 20-day moving average (MA) of 11.54, below the 50-day MA of 10.84, and below the 200-day MA of 11.66, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 66.26 is Neutral, neither overbought nor oversold. The STOCH value of 75.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $5.74B | 13.07 | 12.93% | 1.85% | 8.76% | 99.32% | |
79 Outperform | $3.61B | 18.36 | 21.74% | ― | 60.95% | 43.94% | |
77 Outperform | $6.05B | 7.20 | 36.48% | 1.34% | 9.70% | 193.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.20B | 23.37 | 14.47% | ― | 13.84% | 27.24% | |
58 Neutral | $5.42B | -36.92 | -26.52% | ― | 57.13% | 38.73% | |
57 Neutral | $1.73B | 47.38 | 1.52% | 3.15% | 0.51% | -88.36% |
* Financial Sector Average
HGTY
Hagerty Inc Class A
12.23
2.23
22.30%
MCY
Mercury General
109.26
41.95
62.33%
SIGI
Selective Insurance Group
95.93
9.89
11.49%
KMPR
Kemper
29.43
-30.53
-50.91%
PLMR
Palomar Holdings
136.07
-5.10
-3.61%
LMND
Lemonade
70.51
30.24
75.09%
Hagerty Inc Class A Corporate Events
Executive/Board ChangesShareholder Meetings
Hagerty Shareholders Approve Directors, Pay and Auditor
Positive
Jun 12, 2026
At its June 9, 2026 annual meeting, Hagerty, Inc. stockholders voted on a slate of corporate governance matters, including the election of directors and advisory resolutions on executive pay and its review cadence. The company, a specialist in ins...
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...
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.