Form 4: Hagerty Director Sells $15M in Class A Stock

Hagerty, Inc. Director Robert I. Kauffman reported the sale of over 1.6 million Class A Common Stock shares through a secondary offering.

Summary

• Director Robert I. Kauffman sold 1,455,000 shares of Hagerty, Inc. Class A Common Stock on August 11, 2025, as part of a registered secondary offering.
• An additional 218,250 shares were sold on August 13, 2025, in connection with the exercise of the underwriters' option for the offering.
• All shares were sold at a net price of $8.9197 per share, which reflects the $9.34 secondary public offering price less $0.4203 in underwriting discounts and commissions.
• Following these transactions, Robert I. Kauffman directly holds 67,302 shares of Class A Common Stock.
• Robert I. Kauffman indirectly holds 1,503,412 shares of Class A Common Stock through Aldel LLC, where he serves as manager with voting and investment discretion.

Sentiment

Score: 5

Explanation: The filing reports a significant insider share sale, which, while part of a pre-planned secondary offering, can sometimes be perceived neutrally to slightly negatively by the market. The orderly nature of the sale mitigates strong negative sentiment.

Positives

• Sales were conducted as part of a pre-planned, registered secondary offering, indicating an orderly disposition rather than an unexpected market sale.

Negatives

• A director sold a substantial number of shares (totaling 1,673,250 shares), which could be interpreted as a lack of confidence, although it was part of a secondary offering.

Risks

• Potential investor perception risk due to significant insider share sales, even if part of a planned offering.

Future Outlook

NA

Management Comments

• The shares covered herein were disposed of pursuant to a registered secondary offering contemplated by the prospectus included in the Issuer's registration statement on Form S-3.
• The shares covered herein were disposed of in connection with the exercise in full of the option to purchase additional shares granted to the underwriters pursuant to the underwriting agreement for the Offering.

Industry Context

NA

Related Party Transactions

• Robert I. Kauffman, the reporting person, is the manager of Aldel LLC and has voting and investment discretion over the securities held of record by Aldel LLC, which indirectly holds a significant portion of his beneficial ownership.

Stakeholder Impact

• Shareholders: The secondary offering increases the public float of shares, potentially leading to short-term price pressure due to increased supply, but also provides liquidity for the selling insider.

Key Dates

Recommendation

This filing details a significant insider sale of shares as part of a pre-planned secondary offering. While the sale itself is a factual transaction and not indicative of company operational performance, large insider sales can sometimes create short-term selling pressure or be perceived as a lack of strong conviction by the insider. However, given it's part of a structured offering rather than an open-market dump, the impact is mitigated. Investors should hold and monitor future company performance and broader market sentiment rather than making a strong buy or sell decision based solely on this insider transaction.

Keywords

Hagerty, HGTY, Insider Trading, Form 4, Stock Sale, Director, Secondary Offering, Beneficial Ownership, Robert I. Kauffman, Aldel LLC