Hagerty Announces Secondary Offering of its Class A Common Stock
Rhea-AI Summary
Hagerty (NYSE: HGTY), an automotive enthusiast brand and specialty vehicle insurance provider, announced a secondary public offering of 8.7 million shares of Class A Common Stock by selling stockholders Hagerty Holding Corp. (HHC) and Aldel LLC. The underwriters will have a 30-day option to purchase up to an additional 1.305 million shares.
Keefe, Bruyette & Woods and J.P. Morgan are leading the offering as representatives and bookrunning managers, with BMO Capital Markets, Citizens Capital Markets, and Wells Fargo Securities as additional book running managers. Hagerty will not receive any proceeds from the sale, and HHC plans to use its net proceeds to redeem shares for the benefit of Kim Hagerty's estate.
Positive
- None.
Negative
- Secondary offering of 8.7 million shares could create selling pressure
- Significant insider selling through HHC and Aldel LLC
- Company receives no proceeds from the offering
News Market Reaction
On the day this news was published, HGTY declined 14.47%, reflecting a significant negative market reaction. Argus tracked a trough of -14.9% from its starting point during tracking. Our momentum scanner triggered 22 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $631M from the company's valuation, bringing the market cap to $3.73B at that time. Trading volume was exceptionally heavy at 5.0x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
TRAVERSE CITY, Mich., Aug. 6, 2025 /PRNewswire/ -- Hagerty, Inc. (NYSE: HGTY) ("Hagerty"), an automotive enthusiast brand and leading specialty vehicle insurance provider, announced that Hagerty Holding Corp. ("HHC") and Aldel LLC ("Aldel" and together with HHC, the "Selling Stockholders") intend to offer 8,700,000 shares of Hagerty's Class A Common Stock in an underwritten secondary public offering. In connection with the offering, the Selling Stockholders also intend to grant the underwriters a 30-day option to purchase up to an additional 1,305,000 shares of Hagerty's Class A Common Stock.
Hagerty will not receive any of the proceeds from the sale of the shares of its Class A Common Stock offered by the Selling Stockholders, and the Selling Stockholders will bear the underwriting discounts and commissions associated with the sale of such shares. HHC has advised us that the net proceeds from the sale of its shares in this offering will be used to effect a redemption, for the benefit of the estate of Kim Hagerty, of a corresponding number of its HHC shares. Keefe, Bruyette & Woods, a Stifel Company, and J.P. Morgan are acting as representatives of the underwriters and lead bookrunning managers of the offering. BMO Capital Markets, Citizens Capital Markets and Wells Fargo Securities are acting as additional book running managers of the offering and Oppenheimer & Co. is acting as co-manager of the offering.
Hagerty has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents, including a prospectus supplement, when available, that Hagerty has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Hagerty, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by contacting Keefe, Bruyette & Woods, Inc., 787 Seventh Ave., 4th Floor,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the federal securities laws. All statements provided, other than statements of historical fact, are forward-looking statements, including those relating to the offering, including the timing and size of the offering and the grant of the option to purchase additional shares. The words "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," "ongoing," "contemplate," and similar expressions, and the negative of these expressions, are intended to identify forward-looking statements.
Hagerty has based these forward-looking statements largely on current expectations about future events, which may not materialize. Actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. These factors include, among other things, Hagerty's ability to: (i) compete effectively within our industry and attract and retain our insurance policyholders and paid Hagerty Drivers Club ("HDC") subscribers; (ii) maintain key strategic relationships with our insurance distribution and underwriting carrier partners; (iii) prevent, monitor, and detect fraudulent activity; (iv) manage risks associated with disruptions, interruptions, outages or other issues with our technology platforms or our use of third-party services; (v) accelerate the adoption of our membership and marketplace products and services, as well as any new insurance programs and products we offer; (vi) complete the proposed fronting arrangement with Markel Group Inc. and achieve its intended benefits, (vii) manage the cyclical nature of the insurance business, including through any periods of recession, economic downturn or inflation; (viii) address unexpected increases in the frequency or severity of claims, and (ix) comply with the numerous laws and regulations applicable to our business, including state, federal and foreign laws relating to insurance and rate increases, privacy, the internet, and accounting matters.
The forward-looking statements herein represent the judgment of Hagerty as of the date of this release and Hagerty disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Hagerty's other press releases, reports and other filings with the Securities and Exchange Commission.
About Hagerty, Inc. (NYSE: HGTY)
Hagerty is an automotive enthusiast brand committed to saving driving and to fueling car culture for future generations. The company is a leading provider of specialty vehicle insurance, expert car valuation data and insights, live and digital car auction services, immersive events and automotive entertainment custom made for the 67 million Americans who self-describe as car enthusiasts. Hagerty also operates in
More information can be found at newsroom.hagerty.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/hagerty-announces-secondary-offering-of-its-class-a-common-stock-302523638.html
SOURCE Hagerty
FAQ
How many shares are being offered in Hagerty's (HGTY) secondary offering?
Will Hagerty (HGTY) receive any proceeds from the secondary offering?
Who are the lead underwriters for Hagerty's (HGTY) secondary offering?
What is the purpose of HHC's share sale in the Hagerty (HGTY) offering?
Who are the selling stockholders in the Hagerty (HGTY) secondary offering?
