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Hagerty Inc Class A
(NYSE:HGTY)
Select Model
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Rating:66Neutral
Price Target:
$17.00
▲(26.58% Upside)
Action:Reiterated
Date:09/07/26
HGTY scores as moderately attractive, led by strong cash flow generation and a constructive technical uptrend. The main constraints are TTM revenue/margin deceleration and balance sheet leverage volatility, while valuation (P/E ~32.8 with no dividend yield provided) remains a meaningful headwind.
Positive Factors
Strong Cash Generation
Robust free cash flow gives Hagerty internally generated resources to support operations, absorb claims-related variability, and fund strategic initiatives. Strong cash conversion also improves liquidity and financial flexibility, reducing reliance on external financing as the company expands its insurance and enthusiast ecosystem.
Negative Factors
TTM Revenue and Margin Deceleration
Recent deterioration in revenue and profitability raises questions about the durability of Hagerty’s improved earnings trajectory. Lower net income and weaker operating and EBITDA margins could reduce funds available for reinvestment, make results more sensitive to execution, and delay the benefits expected from continued scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust free cash flow gives Hagerty internally generated resources to support operations, absorb claims-related variability, and fund strategic initiatives. Strong cash conversion also improves liquidity and financial flexibility, reducing reliance on external financing as the company expands its insurance and enthusiast ecosystem.
Read all positive factors
Hagerty Inc Class A (HGTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.35B
Dividend YieldN/A
Average Volume (3M)380.72K
Price to Earnings (P/E)37.6
Beta (1Y)0.66
Revenue Growth7.75%
EPS Growth-20.74%
CountryUS
Employees1,891
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.41
Shares Outstanding102,070,526
10 Day Avg. Volume310,228
30 Day Avg. Volume380,718
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 Cap0.37
Enterprise Value/Revenue1.42
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda27.35
Forecast
1Y Price Target
$14.20Price Target Upside5.73% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.03
Revenue Forecast (FY)$1.34B
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 business for classic and enthusiast vehicles. It earns revenue by offering insurance policies and related insurance services to vehicle owners, with economics driven by premiums written...
Hagerty Inc Class A Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 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
62
Positive
Balance Sheet
55
Neutral
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.40B | 1.46B | 1.19B | 1.01B | 829.49M | 576.54M |
| Gross Profit | 1.06B | 1.17B | 892.90M | 791.10M | 455.94M | 313.48M |
| EBITDA | 72.96M | 176.71M | 132.59M | 90.58M | 44.98M | -32.46M |
| Net Income | 25.46M | 49.02M | 17.02M | 20.23M | 32.08M | -46.36M |
Balance Sheet | ||||||
| Total Assets | 2.15B | 2.07B | 1.67B | 1.56B | 1.29B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.17B | 299.00M | 232.84M | 724.28M | 539.19M | 603.97M |
| Total Debt | 262.73M | 232.57M | 198.04M | 238.10M | 277.38M | 126.43M |
| Total Liabilities | 1.36B | 1.32B | 1.19B | 1.06B | 920.51M | 752.58M |
| Stockholders Equity | 300.45M | 307.93M | 234.99M | 175.54M | 59.25M | -323.78M |
Cash Flow | ||||||
| Free Cash Flow | 278.49M | 194.45M | 155.68M | 118.55M | 10.95M | -1.09M |
| Operating Cash Flow | 307.43M | 218.99M | 177.02M | 144.95M | 55.33M | 42.28M |
| Investing Cash Flow | -236.06M | -185.20M | -618.56M | -51.87M | -91.52M | -68.99M |
| Financing Cash Flow | 65.78M | 29.93M | -46.92M | 91.14M | -28.08M | 332.07M |
Hagerty Inc Class A Technical Analysis
Positive
13.43
Price Trends
13.97
Positive
12.90
Positive
12.00
Positive
Market Momentum
0.57
Negative
67.18
Neutral
77.08
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 13.43 is below the 20-day moving average (MA) of 14.75, below the 50-day MA of 13.97, and above the 200-day MA of 12.00, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 67.18 is Neutral, neither overbought nor oversold. The STOCH value of 77.08 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 |
|---|---|---|---|---|---|---|---|
87 Outperform | $131.10B | 11.34 | 35.44% | 6.16% | 7.67% | 8.87% | |
86 Outperform | $63.65B | 4.96 | 43.13% | 1.68% | 5.92% | 134.66% | |
83 Outperform | $11.50B | 19.93 | 24.52% | 2.37% | 3.65% | -7.67% | |
81 Outperform | $27.85B | 10.61 | 16.53% | 2.03% | 19.55% | 84.05% | |
73 Outperform | $5.68B | 6.06 | 37.19% | 1.24% | 9.95% | 140.12% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $5.35B | 37.65 | 9.81% | ― | 7.75% | -20.74% |
* Financial Sector Average
HGTY
Hagerty Inc Class A
15.57
4.51
40.78%
ALL
Allstate
251.71
64.48
34.44%
CINF
Cincinnati Financial
181.41
33.00
22.24%
ERIE
Erie Indemnity Company
246.88
-66.08
-21.11%
MCY
Mercury General
102.58
26.79
35.35%
PGR
Progressive
225.60
26.63
13.39%
Hagerty Inc Class A Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Hagerty Inc Class A completes secondary share offering
Neutral
Sep 11, 2026
On September 9, 2026, Hagerty, Inc., The Hagerty Group and Hagerty Holding Corp. entered an underwriting agreement with a syndicate led by Wells Fargo Securities and J.P. Morgan for a secondary offering of Hagerty’s Class A common stock. The...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Hagerty Inc Announces Major Secondary Stock Offering
Neutral
Sep 9, 2026
On September 9, 2025, Hagerty, Inc. reported that Hagerty Holding Corp. would commence a secondary public offering of Hagerty’s Class A common stock, with the selling stockholder planning to offer 8,250,000 shares and grant underwriters a 30...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Hagerty expands UK footprint with Bennetts acquisition
Positive
Aug 5, 2026
Hagerty reported strong operational performance in the first half of 2026, with written premium up 19%, a record 279,000 new members added and adjusted EBITDA rising 32% to $160 million, even as GAAP results were depressed by a structural shift in...
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.