Form 4: Hagerty Inc. Director Robert I. Kauffman Sells Shares Under 10b5-1 Plan

Director Robert I. Kauffman sold a total of 52,701 shares of Hagerty Inc. Class A Common Stock over three days, according to a recent SEC filing.

Summary

• Robert I. Kauffman, a director at Hagerty Inc., sold shares of Class A Common Stock over three days.
• The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on August 11, 2023.
• On November 12, 2024, 10,641 shares were sold at a weighted average price of $11.21.
• On November 13, 2024, 14,849 shares were sold at a weighted average price of $11.17.
• On November 14, 2024, 27,211 shares were sold at a weighted average price of $11.15.
• The shares were sold from holdings indirectly owned through Aldel LLC, where Kauffman is the manager.
• Following these transactions, Kauffman indirectly owns 4,911,902 shares through Aldel LLC.

Sentiment

Score: 5

Explanation: The document reflects a routine insider transaction under a pre-arranged plan. It is neither particularly positive nor negative, but rather a neutral event.

Risks

• The sale of shares by a director could be perceived negatively by the market, potentially impacting the stock price.
• The ongoing sales under the 10b5-1 plan could indicate a continued trend of selling by the director.

Industry Context

This filing is a routine disclosure of insider trading activity, which is common for publicly traded companies. The use of a 10b5-1 plan is a standard practice for insiders to sell shares while avoiding accusations of trading on non-public information.

Comparison to Industry Standards

• The use of a 10b5-1 trading plan is a common practice among corporate insiders at publicly traded companies like Hagerty, Inc. to manage their personal finances while avoiding accusations of insider trading.
• Similar filings are regularly made by directors and officers of companies such as Progressive Corporation (PGR) and Allstate Corporation (ALL), which are also in the insurance sector, when they execute trades of their company's stock.
• The volume of shares sold by Kauffman is not unusual for a director, and the price range is within the typical fluctuations seen in the market.

Stakeholder Impact

• The sale of shares by a director could cause some concern among shareholders, but the use of a 10b5-1 plan mitigates the risk of insider trading concerns.
• The impact on employees, customers, suppliers, and creditors is likely to be minimal.

Key Dates

Keywords

Hagerty Inc., Robert I. Kauffman, insider trading, SEC Form 4, Rule 10b5-1, stock sale, Class A Common Stock, Aldel LLC, director