Form 4: Hagerty CFO Reports Routine Stock Transactions

Hagerty's Chief Financial Officer, Patrick McClymont, reported the withholding of shares for taxes and the acquisition of shares through an employee stock purchase plan.

Summary

• Patrick McClymont, CFO of Hagerty, Inc., reported two transactions involving Class A Common Stock.
• On October 1, 2025, 8,111 shares were withheld for taxes at a price of $11.95 per share, following the vesting of Restricted Stock Units (RSUs) granted on October 1, 2022.
• On October 2, 2025, 461 shares were acquired through the Hagerty, Inc. Employee Stock Purchase Plan (ESPP) at a price of $11.35 per share.
• The ESPP acquisition price represents 95% of the closing price of Hagerty's stock on October 1, 2025, for the offering period of April 1, 2025, through September 30, 2025.
• Following these transactions, Patrick McClymont beneficially owns 314,207 shares of Class A Common Stock.

Sentiment

Score: 6

Explanation: The filing reports routine insider transactions, including both a disposition for tax purposes and an acquisition through an employee plan. The net effect is a slight increase in beneficial ownership, which is generally neutral to slightly positive, indicating continued executive participation in company equity.

Positives

• Acquisition of 461 shares through the Employee Stock Purchase Plan (ESPP) at a discounted price of $11.35 per share (95% of market price).
• Continued participation by the CFO in the company's equity plans demonstrates alignment with shareholder interests.

Negatives

• 8,111 shares were withheld for taxes upon RSU vesting, representing a reduction in direct beneficial ownership for tax purposes.

Risks

• The Power of Attorney explicitly states that it does not relieve the undersigned from responsibility for compliance with obligations under the Exchange Act, including reporting requirements under Section 16.
• Neither the Company nor the attorneys-in-fact assume liability for the undersigned's responsibility to comply with Exchange Act requirements or for profit disgorgement under Section 16(b).

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Management Comments

• The filing includes a Power of Attorney signed by Patrick McClymont, authorizing designated individuals to file Section 16 reports on his behalf, acknowledging his ongoing responsibility for compliance with Exchange Act obligations.

Industry Context

This Form 4 filing reflects routine insider transactions related to executive compensation and employee stock plans, which are common across publicly traded companies. It does not provide specific insights into broader industry trends for the insurance or classic car markets.

Comparison to Industry Standards

• The transactions reported are standard for executive compensation, involving RSU vesting and participation in an ESPP.
• The ESPP discount of 5% (95% of closing price) is a common incentive structure, comparable to plans offered by many other public companies to encourage employee ownership.

Corporate Governance

Stakeholder Impact

• Shareholders: The CFO's continued participation in equity plans, including a net increase in beneficial ownership, can be viewed positively as it aligns management's interests with shareholders.
• Employees: The ESPP transaction highlights the availability of employee stock purchase programs, which are a benefit for participating employees.

Next Steps

• The filing does not explicitly mention future actions or milestones beyond the reported transactions and the ongoing authority granted by the Power of Attorney for future Section 16 filings.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions (RSU vesting with tax withholding and ESPP acquisition) by the CFO. Such transactions are standard and do not typically indicate a significant change in the company's fundamental outlook or warrant a change in investment thesis. The net increase in beneficial ownership is minor and consistent with ongoing executive compensation practices. Therefore, a 'hold' recommendation is appropriate as this filing alone does not provide new information to alter an existing investment decision.

Keywords

Hagerty, HGTY, Form 4, Insider Trading, Stock Transaction, CFO, Patrick McClymont, RSU, ESPP, Employee Stock Purchase Plan, Beneficial Ownership