Form 4: Hagerty Director Sells Shares Under 10b5-1 Plan

Hagerty Director Robert I. Kauffman sold over 126,000 shares of Class A Common Stock in late August and early September 2025, pursuant to a pre-arranged 10b5-1 trading plan.

Summary

• Robert I. Kauffman, a Director of Hagerty, Inc. (HGTY), reported sales of Class A Common Stock.
• The sales were executed under a Rule 10b5-1 trading plan adopted on August 9, 2024.
• On August 29, 2025, 62,500 shares were sold at a weighted average price of $11.23 per share.
• On September 2, 2025, 22,295 shares were sold at a weighted average price of $11.19 per share.
• On September 3, 2025, 41,699 shares were sold at a weighted average price of $11.31 per share.
• Total shares sold across these transactions amount to 126,494 shares.
• Following these transactions, Mr. Kauffman's indirect beneficial ownership through Aldel LLC decreased to 1,288,529 shares.
• Mr. Kauffman is the manager of Aldel LLC and has voting and investment discretion over its securities, but disclaims beneficial ownership except for his pecuniary interest.

Sentiment

Score: 5

Explanation: While insider selling can be a negative signal, the existence of a Rule 10b5-1 plan mitigates the immediate concern that the sales are based on new, negative material non-public information. It indicates a pre-scheduled liquidity event, making the sentiment neutral to slightly negative rather than strongly negative.

Positives

• The sales were conducted pursuant to a pre-arranged Rule 10b5-1 trading plan, indicating the transactions were scheduled in advance and not based on recent material non-public information.

Negatives

• A director of the company sold a significant number of shares (126,494 shares) over a short period.
• Insider selling, even if pre-planned, can sometimes be perceived by the market as a lack of confidence in the company's future prospects.

Risks

• Potential negative market perception due to insider selling, which could put downward pressure on the stock price.

Future Outlook

N/A

Industry Context

N/A

Related Party Transactions

• The shares are held indirectly by Aldel LLC, where Robert I. Kauffman is the manager and has voting and investment discretion. He disclaims beneficial ownership except to the extent of his pecuniary interest.

Stakeholder Impact

• Shareholders may view the insider selling with caution, potentially leading to short-term negative sentiment or downward pressure on the stock price. However, the pre-planned nature of the sales under a 10b5-1 plan reduces the severity of this concern compared to unplanned sales.

Key Dates

Recommendation

The insider sales by Director Robert I. Kauffman were conducted under a pre-arranged Rule 10b5-1 trading plan. This indicates the transactions were scheduled in advance for personal financial planning purposes and not based on recent material non-public information. While insider selling can sometimes be perceived negatively, the pre-planned nature mitigates the immediate concern of a lack of confidence in the company's future. Therefore, a 'hold' recommendation is appropriate, as this event alone does not provide a strong signal for a 'buy' or 'sell' decision, but warrants continued monitoring of company performance and other insider activity.

Keywords

Hagerty, HGTY, insider trading, Form 4, stock sale, director, Robert I. Kauffman, 10b5-1 plan, beneficial ownership