Hagerty, Inc. (HGTY)

Price$13.40Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong growth is already matched by demanding profit expectations.

Using roughly 347 million shares outstanding, the equity value is about $4.6 billion. Adding debt and subtracting cash puts the business value near $4.5 billion. Against management’s $270–$280 million 2026 adjusted EBITDA outlook—a profit measure before interest, taxes, depreciation and selected adjustments—that is roughly 16–17 times. 2025 operating cash flow minus capital spending was about $194 million, implying roughly 24 times that cash generation. Those are not bargain levels, but mid-teens premium growth makes them defensible if execution stays strong.

Big pictureCash generation has strengthened quickly, but the 2026 accounting transition makes reported profit unusually noisy.

The supplied history shows operating cash flow rising from $134 million in 2023 to $177 million in 2024 and $219 million in 2025, while capital spending stayed near $20–$26 million. That left roughly $107 million, $156 million and $194 million of free cash flow, meaning cash left after running and investing in the business. First-half 2026 operating cash flow reached about $186 million, yet net income was negative because $153 million of transition costs hit reported earnings.

Business strengthHagerty’s niche insurance franchise is growing fast, and its balance sheet now carries a small cash cushion.

First-half 2026 written premium rose 19% to $713 million, policies in force increased 19% to 1.9 million, and retention stayed high at 88.2%. The supplied balance sheet shows about $298 million of cash against $258 million of debt at June 2026, a modest net cash position. Dilution has been limited but persistent: shares rose from about 340 million at 2023 year-end to about 347 million, while first-half 2026 stock compensation was roughly $10 million. No buybacks or dividends appear; the planned Bennetts purchase instead uses about $43 million for expansion.

What could change the storyThe upside depends on cleaner post-transition profits; the downside is that more underwriting risk now sits with Hagerty.

The new Markel arrangement gives Hagerty 100% of the premium economics, but also 100% of the risk on the Essentia book, so future claim losses matter more. Management expects about $199 million of 2026 transition costs; if those disappear and adjusted profit holds near or above the $270–$280 million outlook, the observed valuation could look reasonable or cheap. Marketplace revenue rose 48% in the second quarter, but auctions and collector-car trading are cyclical. Weaker underwriting, catastrophe losses, or a marketplace slowdown would challenge the price.

AI: News

Q2 outlook raisedHagerty raised its 2026 outlook after premium and underlying profit growth accelerated in the first half.

On August 5, Hagerty reported first-half written premium growth of 19% to $713 million, adjusted EBITDA growth of 32% to $160 million, and operating cash flow growth of 91% to $186 million. It raised full-year guidance to 16–17% written premium growth, $18–$30 million of net income, and $270–$280 million of adjusted EBITDA. The shares finished roughly 15% higher that day; the timing shows a strong market response, but does not prove the earnings release was the only cause.

Bennetts acquisitionThe Bennetts deal adds motorcycle insurance scale in Britain without materially stretching Hagerty’s balance sheet.

On July 2, Hagerty agreed to buy Bennetts for about $43 million, with closing expected in the third quarter subject to approval. Bennetts holds roughly 15% of the U.K. motorcycle insurance market, and Hagerty said the deal should triple its U.K. revenue to about £25 million and be accretive from day one. The purchase price is modest beside June unrestricted cash, but successful integration and cross-selling still need to be proven.

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Revenue

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2021

2022

2023

2024

2025

Net income

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2025

Free cash flow

2020

2021

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$677.6M	$548.6M	$464.3M	$383.7M	$323.3M	$279.0M
Operating expenses	$1.28B	$1.13B	$976.7M	—	—	—
Operating income	—	$66.4M	$10.4M	−$67.6M	−$10.1M	$15.8M
Operating margin	—	12.11%	2.24%	−17.61%	−3.12%	5.68%
EBITDA	—	$105.3M	$56.2M	−$33.7M	$12.1M	$27.6M
EBITDA margin	—	19.20%	12.11%	−8.78%	3.74%	9.91%
Net income	$149.2M	$78.3M	$28.2M	$32.1M	−$46.4M	$10.2M
Net profit margin	22.02%	14.27%	6.07%	8.36%	−14.34%	3.64%
Basic EPSper basic share	$0.41	$0.10	$0.19	$0.39	-$0.56	$101.66
Diluted EPSper diluted share	$0.37	$0.10	$0.09	-$0.07	-$0.56	$101.66

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

50.88%of listed shares

STATE FARM MUTUAL AUTOMOBILE INSURANCE CO51.8M shares · Jun 30, 2026

View holders

Top 20 reported holders of HGTY
Holder	% owned
STATE FARM MUTUAL AUTOMOBILE INSURANCE CO	50.88%51.8M shares
NEUBERGER BERMAN GROUP LLC	9.36%9.53M shares
T. Rowe Price Investment Management, Inc.	5.98%6.09M shares
Polar Capital Holdings Plc	5.89%6M shares
Pembroke Management, LTD	3.35%3.41M shares
Markel Group Inc.	3.05%3.11M shares
VANGUARD CAPITAL MANAGEMENT LLC	1.89%1.93M shares
Greenhaven Road Investment Management, L.P.	1.83%1.87M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.62%1.65M shares
Hagerty McKeel	≈1.02%1.04M shares
Lincoln Capital LLC	0.96%973.65K shares
KAUFFMAN ROBERT I	≈0.81%827.27K shares
BlackRock, Inc.	0.71%718.48K shares
ROYCE & ASSOCIATES LP	0.52%525K shares
SWANSON WILLIAM H	≈0.46%468.57K shares
GEODE CAPITAL MANAGEMENT, LLC	0.44%446.89K shares
DIMENSIONAL FUND ADVISORS LP	0.37%374.62K shares
McClymont Patrick	≈0.33%336.79K shares
FIRST TRUST ADVISORS LP	0.33%335.85K shares
SCHOLTZ & COMPANY, LLC	0.30%308.41K shares

Percentages use 101.8M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys8$357.6K disclosed value

Sells (SEC code S)295$137.78M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 15, 2026Form 4	Kuczinski Anthony JDirector	BuyClass A Common Stock	9.5K	$10.46	$99.4K	68.6K
Apr 7, 2026Form 4 · 10b5-1	Harris LaurieDirector	SellClass A Common Stock	5.5K	$11.01	$60.9K	36.7K
Mar 12, 2026Form 4	Kuczinski Anthony JDirector	BuyClass A Common Stock	4.0K	$9.50	$38.0K	47.3K
Mar 3, 2026Form 4	Kuczinski Anthony JDirector	BuyClass A Common Stock	15.0K	$10.72	$160.8K	43.3K
Jan 26, 2026Form 4 · 10b5-1	Ahn KennethPresident, Hagerty Marketplace	SellClass A Common Stock · indirect	50.0K	$12.41	$620.5K	0