Form 4: Hagerty Director Robert Kauffman Sells Over 16,000 Shares Under Pre-Arranged Trading Plan

Hagerty, Inc. Director and 10% Owner Robert I. Kauffman reported the sale of 16,544 shares of Class A Common Stock across three transactions in late May 2025, executed under a Rule 10b5-1 trading plan.

Summary

• Robert I. Kauffman, a Director and 10% Owner of Hagerty, Inc. (HGTY), reported the sale of Class A Common Stock.
• On May 23, 2025, 2,144 shares were sold at a weighted average price of $9.12 per share.
• On May 27, 2025, an additional 7,400 shares were sold at a weighted average price of $9.32 per share.
• On May 28, 2025, 7,000 shares were sold at a weighted average price of $9.37 per share.
• All reported sales were effected pursuant to a Rule 10b5-1 trading plan adopted by Mr. Kauffman on August 9, 2024.
• Following these transactions, Mr. Kauffman's indirect beneficial ownership through Aldel LLC decreased to 3,916,007 shares of Class A Common Stock, with an additional 67,302 shares held directly.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While insider selling can be perceived negatively, the execution under a pre-arranged 10b5-1 plan mitigates concerns about opportunistic trading, making it a routine disclosure.

Positives

• The sales were conducted under a Rule 10b5-1 trading plan, which indicates the transactions were pre-scheduled and not based on new, non-public information, enhancing transparency and compliance with insider trading regulations.

Negatives

• The sale of 16,544 shares by a Director and 10% Owner reduces insider ownership, which can sometimes be perceived by the market as a lack of confidence, even when executed under a pre-arranged plan.
• The transactions represent a reduction in the reporting person's indirect beneficial ownership in Hagerty, Inc.

Risks

• Potential for market misinterpretation of the insider sales, which could lead to negative sentiment or short-term stock price volatility, despite the sales being part of a pre-arranged 10b5-1 plan.

Future Outlook

This Form 4 filing reports past insider transactions and does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• "The reported sale was effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on August 9, 2024."

Industry Context

This filing is a routine disclosure of individual insider stock transactions and does not provide broader industry context or trends for the automotive enthusiast and classic vehicle insurance market.

Comparison to Industry Standards

• Not applicable for this type of filing as it reports individual insider transactions, not company performance metrics or operational results that can be benchmarked against industry standards or competitors.

Related Party Transactions

• The sales were made by Aldel LLC, an entity managed by the reporting person, Robert I. Kauffman, who disclaims beneficial ownership except to the extent of his pecuniary interest therein. This constitutes an indirect transaction by a related party.

Stakeholder Impact

• Shareholders may observe the reduction in insider ownership, which could influence their perception of management's confidence in the company, although the 10b5-1 plan context should alleviate significant concerns.

Key Dates

Keywords

Hagerty, HGTY, Form 4, Insider Trading, Stock Sale, Director, 10b5-1 Plan, Beneficial Ownership