Form 4: Hagerty Holding Corp. Sells 1.2M HGTY Shares

Hagerty Holding Corp., a 10% owner and director of Hagerty, Inc., sold 1,236,750 shares of Class A Common Stock at $8.9197 per share after converting an equal number of Paired Interests.

Summary

• Hagerty Holding Corp., a 10% owner and director of Hagerty, Inc. (HGTY), reported a transaction involving 1,236,750 shares of Class A Common Stock.
• The transaction occurred on August 13, 2025, and the filing was submitted on August 15, 2025.
• The shares were acquired through the conversion of an equal number of 'Paired Interests,' which consist of one share of Class V Common Stock and one unit of limited liability company interest of The Hagerty Group, LLC (OpCo).
• Immediately following the conversion, the 1,236,750 Class A Common Stock shares were sold at a price of $8.9197 per share.
• The transaction was conducted pursuant to a Rule 10b5-1(c) trading plan, indicating a pre-scheduled sale.
• Following these transactions, Hagerty Holding Corp. directly owns 0 shares of Class A Common Stock and 166,552,156 shares of Class V Common Stock (representing remaining Paired Interests).

Sentiment

Score: 3

Explanation: The sentiment is moderately negative due to a significant insider sale by a 10% owner and director. While executed under a 10b5-1 plan, the sheer volume of shares sold can be perceived as a bearish signal by the market, indicating a potential lack of confidence or a strategic reduction in exposure by a major stakeholder.

Positives

• The transaction was executed under a Rule 10b5-1(c) plan, indicating a pre-scheduled, non-discretionary sale, which can reduce concerns about insider trading based on non-public information.

Negatives

• A significant sale of 1,236,750 shares by a 10% owner and director could be perceived negatively by the market, potentially signaling a lack of confidence or a strategic reduction in exposure by the selling entity.
• The divestment represents a substantial reduction in direct Class A Common Stock holdings by a key insider.

Future Outlook

NA

Industry Context

This filing details an insider transaction specific to Hagerty, Inc. It does not directly provide information on broader industry trends, though significant insider sales can sometimes influence market perception within a sector.

Related Party Transactions

• Hagerty Holding Corp., a 10% owner and director, engaged in an exchange of Paired Interests for Class A Common Stock and subsequent sale of those shares. This constitutes a related party transaction.

Stakeholder Impact

• Shareholders: The sale by a significant insider could lead to negative market sentiment and potential downward pressure on the stock price.
• Company: The transaction itself is a routine insider disclosure, but the market's reaction to a large insider sale could impact the company's valuation and investor perception.

Key Dates

Recommendation

The significant sale of Class A Common Stock by Hagerty Holding Corp., a 10% owner and director, is a notable event. While executed under a Rule 10b5-1(c) plan, which suggests a pre-determined, non-discretionary sale, the sheer volume of shares divested (1.23 million shares) by a key insider can be interpreted by the market as a bearish signal. This could lead to short-term negative pressure on the stock price. However, without additional information on the company's fundamentals or strategic direction, a 'hold' recommendation is appropriate. Investors should monitor the stock's performance and any further company announcements to assess the broader implications of this insider activity.

Keywords

Hagerty Inc, HGTY, SEC Form 4, Insider Sale, Stock Sale, Beneficial Ownership, Hagerty Holding Corp, Rule 10b5-1, Class A Common Stock, Class V Common Stock, Paired Interests