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

Key Points

• Hagerty beat quarterly expectations, reporting an adjusted EPS loss of $0.02 versus the $0.09 consensus loss, while revenue of $354.82 million exceeded estimates of $316.21 million.
• The company raised its 2026 outlook, forecasting 16%–17% written-premium growth, $18 million–$30 million in GAAP net income, and $270 million–$280 million in adjusted EBITDA. First-half written premiums rose 19%, adjusted EBITDA increased 32%, and membership reached a record 3 million-plus insured vehicles.
• Hagerty shares rose 15.2% to $13.50, although management cited an 88% retention rate and temporary accounting effects from its Markel arrangement. Analysts maintain a generally neutral view, with an average price target of $13.67.

Hagerty (NYSE:HGTY - Get Free Report) released its quarterly earnings data on Wednesday. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.07, FiscalAI reports. The company had revenue of $354.82 million during the quarter, compared to analysts' expectations of $316.21 million. Hagerty had a net margin of 5.11% and a return on equity of 11.94%.

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 Up 15.2%

HGTY stock traded up $1.78 during trading on Wednesday, hitting $13.50. 304,800 shares of the company's stock traded hands, compared to its average volume of 153,178. The firm has a market capitalization of $4.64 billion, a P/E ratio of 67.55 and a beta of 0.79. Hagerty has a 1 year low of $8.81 and a 1 year high of $14.00. The company has a quick ratio of 1.65, a current ratio of 1.65 and a debt-to-equity ratio of 0.35. The business has a fifty day simple moving average of $11.37 and a two-hundred day simple moving average of $11.23.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Hagerty

A number of institutional investors have recently added to or reduced their stakes in HGTY. Occudo Quantitative Strategies LP purchased a new position in Hagerty in the fourth quarter valued at about $170,000. Millennium Management LLC bought a new stake in shares of Hagerty in the 4th quarter valued at about $353,000. Schonfeld Strategic Advisors LLC boosted its holdings in shares of Hagerty by 107.0% in the 4th quarter. Schonfeld Strategic Advisors LLC now owns 26,718 shares of the company's stock valued at $359,000 after buying an additional 13,808 shares in the last quarter. Gillson Capital LP grew its position in shares of Hagerty by 15.4% in the 4th quarter. Gillson Capital LP now owns 202,012 shares of the company's stock worth $2,715,000 after buying an additional 27,012 shares during the last quarter. Finally, AQR Capital Management LLC purchased a new position in shares of Hagerty in the 4th quarter worth approximately $315,000. Institutional investors own 20.51% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. raised their target price on shares of Hagerty from $12.00 to $13.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 14th. Weiss Ratings raised Hagerty from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, June 17th. Truist Financial decreased their target price on Hagerty from $13.00 to $11.00 and set a "hold" rating for the company in a research report on Monday, May 11th. Wall Street Zen upgraded Hagerty from a "sell" rating to a "hold" rating in a report on Saturday, July 4th. Finally, Wells Fargo & Company increased their price target on Hagerty from $11.00 to $13.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 9th. Four analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price 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.

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