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Hagerty Inc Class A
(NYSE:HGTY)
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Rating:66Neutral
Price Target:
$14.50
▲(7.97% 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 strengthens Hagerty’s liquidity and gives management flexibility to fund growth, absorb claims volatility, and support operations internally. Strong cash conversion relative to earnings also provides a durable financial cushion, although profitability softness warrants continued monitoring.
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 limit reinvestment capacity and make future results more sensitive to execution, pricing, and claims performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust free cash flow strengthens Hagerty’s liquidity and gives management flexibility to fund growth, absorb claims volatility, and support operations internally. Strong cash conversion relative to earnings also provides a durable financial cushion, although profitability softness warrants continued monitoring.
Read all positive factors
Hagerty Inc Class A (HGTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.66B
Dividend YieldN/A
Average Volume (3M)145.04K
Price to Earnings (P/E)32.8
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. Volume121,998
30 Day Avg. Volume145,040
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.64Price Target Upside1.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
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 primarily makes money through its insurance operations. The company generates revenue from insurance premiums written on collector-vehicle policies and related insurance products; a portion of these premiums is retained as earned premium o...
Hagerty Inc Class A Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 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
12.50
Positive
11.53
Positive
11.79
Positive
Market Momentum
0.29
Positive
63.72
Neutral
49.89
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 above the 20-day moving average (MA) of 13.13, above the 50-day MA of 12.50, and above the 200-day MA of 11.79, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 49.89 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 |
|---|---|---|---|---|---|---|---|
86 Outperform | $3.59B | 17.81 | 21.61% | 0.35% | 60.27% | 30.93% | |
85 Outperform | $5.49B | 11.44 | 13.87% | 1.87% | 7.30% | 32.16% | |
73 Outperform | $5.79B | 6.18 | 37.19% | 1.21% | 9.95% | 140.12% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $4.66B | 32.76 | 9.81% | ― | 7.75% | -20.74% | |
55 Neutral | $1.65B | -3.33 | -19.33% | 4.56% | -3.92% | -256.50% | |
52 Neutral | $4.13B | -28.56 | -26.78% | ― | 76.73% | 35.36% |
* Financial Sector Average
HGTY
Hagerty Inc Class A
13.55
1.47
12.17%
MCY
Mercury General
104.53
27.99
36.56%
SIGI
Selective Insurance Group
92.19
14.03
17.95%
KMPR
Kemper
28.04
-23.23
-45.31%
PLMR
Palomar Holdings
136.58
13.22
10.72%
LMND
Lemonade
53.41
0.43
0.81%
Hagerty Inc Class A Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Hagerty Updates Executive Severance and Compensation Framework
Neutral
Jul 17, 2026
On July 15, 2026, Hagerty’s board approved a new Executive Severance and Change in Control Plan and entered into new or amended employment agreements for five senior executives, including CEO McKeel Hagerty. The changes aim to modernize and ...
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...
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.