Hagerty (NYSE:HGTY) Posts Earnings Results, Beats Expectations By $0.07 EPS

Hagerty (NYSE:HGTY) posted its quarterly earnings data on Wednesday. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.07, FiscalAI reports. Hagerty had a return on equity of 11.94% and a net margin of 5.11%.The firm had revenue of $354.82 million during the quarter, compared to analysts’ expectations of $316.21 million.

Here are the key takeaways from Hagerty’s conference call:

• Hagerty raised its 2026 outlook, now expecting written premium growth of 16%–17%, GAAP net income of $18 million–$30 million, and adjusted EBITDA of $270 million–$280 million, citing strong first-half momentum and better cost flow-through.
• First-half written premium rose 19%, adjusted EBITDA increased 32% to $160 million, and the company added a record 279,000 members while surpassing 3 million insured vehicles. State Farm conversions and new business contributed significantly, with the State Farm transition still expected to run through 2028.
• Hagerty reported an 88% first-half combined ratio and highlighted continued expansion through State Farm, Progressive, Liberty Mutual, independent agents, and its Enthusiast Plus program. Marketplace sales grew 17% to $65 million, led by a 74% increase in Broad Arrow auction sales.
• Reported GAAP revenue declined 6% and first-half GAAP net loss was $5 million because of accounting effects from the new Markel fronting arrangement and deferred acquisition-cost timing. Management expects these transition effects to diminish by year-end, with a cleaner, normalized P&L in 2027.
• Retention declined modestly to 88%, primarily reflecting a slight deterioration in the core book, although management said it remains within historical ranges. Hagerty also said shareholder capital returns are not a near-term priority, favoring reinvestment and selective acquisitions such as the recently announced Bennetts purchase.

Hagerty Stock Performance

Shares of Hagerty stock traded up $1.78 during trading on Wednesday, hitting $13.50. 304,800 shares of the company’s stock were exchanged, compared to its average volume of 153,178. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.65 and a current ratio of 1.65. The business has a 50-day simple moving average of $11.37 and a 200-day simple moving average of $11.23. Hagerty has a 52-week low of $8.81 and a 52-week high of $14.00. The stock has a market capitalization of $4.64 billion, a price-to-earnings ratio of 67.55 and a beta of 0.79.

Insider Buying and Selling

In other Hagerty news, CAO Kevin M. Delaney sold 3,113 shares of the company’s stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $12.25, for a total value of $38,134.25. Following the sale, the chief accounting officer directly owned 83,972 shares of the company’s stock, valued at approximately $1,028,657. This represents a 3.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 13,458 shares of company stock valued at $163,227 over the last 90 days. 3.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Hagerty

Institutional investors and hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. grew its holdings in Hagerty by 2,374.5% during the second quarter. Osaic Holdings Inc. now owns 4,949 shares of the company’s stock worth $50,000 after acquiring an additional 4,749 shares during the period. BNP Paribas Financial Markets lifted its holdings in Hagerty by 165.3% in the third quarter. BNP Paribas Financial Markets now owns 5,131 shares of the company’s stock valued at $62,000 after acquiring an additional 3,197 shares during the period. Los Angeles Capital Management LLC acquired a new position in Hagerty in the fourth quarter valued at approximately $98,000. Bank of America Corp DE boosted its position in Hagerty by 46.6% in the 2nd quarter. Bank of America Corp DE now owns 8,571 shares of the company’s stock worth $87,000 after purchasing an additional 2,726 shares in the last quarter. Finally, Occudo Quantitative Strategies LP acquired a new stake in shares of Hagerty during the 4th quarter worth approximately $170,000. Institutional investors and hedge funds own 20.51% of the company’s stock.

Analysts Set New Price Targets

HGTY has been the subject of several recent analyst reports. Truist Financial lowered their price target on Hagerty from $13.00 to $11.00 and set a “hold” rating for the company in a report on Monday, May 11th. Weiss Ratings upgraded shares of Hagerty from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, June 17th. UBS Group set a $14.00 price target on shares of Hagerty in a report on Wednesday, June 10th. Wells Fargo & Company upped their target price on Hagerty from $11.00 to $13.00 and gave the company an “equal weight” rating in a research report on Thursday, July 9th. Finally, JPMorgan Chase & Co. lifted their price target on Hagerty from $12.00 to $13.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 14th. Four analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $13.67.

About Hagerty

Hagerty is a specialized automotive lifestyle and insurance company that caters primarily to collectible car enthusiasts. Its core business centers on offering classic vehicle insurance policies designed to protect antique, vintage and specialty automobiles, motorcycles and boats. These policies typically feature agreed-value coverage, flexible usage options and access to restoration services, aligning with the unique needs of collectors and hobbyists.

Beyond insurance, Hagerty operates a comprehensive suite of community and content services under its automotive lifestyle brand.