Company Performance - Hagerty, Inc. (HGTY) shares have increased by 3% over the past month, reaching a new 52-week high of $14, and have gained 40.9% year-to-date compared to 17.6% for the Zacks Finance sector and 10.2% for the Zacks Insurance - Property and Casualty industry [1] - The company has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters, with the latest EPS reported at $0.13 against a consensus of $0.09 [2] Earnings Forecast - For the current fiscal year, Hagerty is expected to post earnings of $0.37 per share on revenues of $1.39 billion, reflecting a 54.17% increase in EPS and a 16.17% increase in revenues [3] - The next fiscal year is projected to see earnings of $0.43 per share on the same revenue of $1.39 billion, indicating a year-over-year change of 14.86% in EPS and a slight decrease of 0.57% in revenues [3] Valuation Metrics - Hagerty's current valuation metrics show a Price-to-Earnings (P/E) ratio of 36.5X for the current fiscal year, significantly higher than the peer industry average of 11.5X, and a trailing cash flow ratio of 37.9X compared to 12.9X for its peers [6] - The stock has a Value Score of D, a Growth Score of A, and a Momentum Score of C, resulting in a VGM Score of B [6] Zacks Rank - Hagerty holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend, indicating potential for further price appreciation [7] Industry Comparison - American Coastal Insurance Corporation (ACIC), a peer in the industry, also has a Zacks Rank of 2 (Buy) and shows strong earnings performance, beating consensus estimates by 56.41% [8][9] - ACIC is expected to post earnings of $1.40 per share on revenues of $332.48 million for the current fiscal year, with shares gaining 5.5% over the past month [9][10] - The Insurance - Property and Casualty industry is performing well, ranking in the top 22% of all industries, suggesting favorable conditions for both HGTY and ACIC [10]

Core Insights - The classic-car market is expected to maintain its strength into 2026, driven by a new generation of collectors [1] Group 1: Market Performance - Auctions and online sales of collectible cars increased by 10% in 2025, reaching $4.8 billion [2] - Online classic-car sales surged by 12% this year, totaling $2.5 billion [3] Group 2: Demographic Shifts - A new generation of collectors, including Generation X, millennials, and Gen Z, is redefining the classic-car market as baby boomers exit [3] - Younger buyers are showing a preference for high-performance supercars from the '90s and later, moving away from the traditional 1950s and '60s sports cars [4]

Core Insights - Broad Arrow, a Hagerty company, reported a total transaction value of over $624 million in 2025, marking a 97% increase from $316 million in 2024 [1][2]. Auction Performance - Broad Arrow Auctions achieved total sales of $257 million across eight live auctions and two online memorabilia auctions in 2025, with an 88% sell-through rate for 949 lots sold [3][8]. - The company set 11 world record auction prices and attracted bidders from 52 countries, with significant growth in registered bidders, particularly in Europe [3][9]. Private Sales - Broad Arrow's Private Sales business generated over $281 million in transaction value across 190 transactions, surpassing auction totals for the first time, with an average transaction value of approximately $1.48 million [14][8]. - Notable sales included a 1995 McLaren F1 and a 2019 Ferrari FXX-K Evo, highlighting the company's expertise in high-value collector cars [15][16]. Financing Capabilities - Broad Arrow Capital facilitated over $85 million in new financing transactions in 2025, supporting clients in the U.S., U.K., and Europe [17][8]. Future Outlook - The company plans to expand its auction calendar in 2026 with new online sales and live events, including the flagship Amelia Auction scheduled for March 2026 [18][19].

Market Overview - The classic car market has shown strong performance in 2025, with significant activity in live auctions, digital sales, and private transactions, indicating a solid year overall [2][3] - There is optimism that this strength will continue into 2026, with no indicators suggesting a downturn [3] Supercar Segment - The supercar segment has emerged as the biggest story of 2025, with 80% of vehicles purchased by major collectors being supercars, particularly models from the 1990s and later [4][5][6] - New manufacturers and boutique brands are contributing to the growth of this segment, with high-value cars being sold rapidly [7] Generational Trends - The baby boomer generation is simplifying their collections as they age, while younger generations (Gen X, millennials, Gen Z) are beginning to enter the market and show interest in car collecting [10][11][12] - The anticipated wealth transfer of approximately $4 trillion annually is expected to influence the classic car market, as younger generations inherit and decide the fate of these vehicles [13][14] Market Dynamics - Luxury car manufacturers are producing and selling vehicles in greater numbers than in the past, with brands like Ferrari and Lamborghini setting record sales [17][18] - The market is also seeing a rise in interest for trucks, SUVs, and vintage restorations, indicating diverse opportunities for collectors [19][20] Collector Insights - A list of 11 cars has been identified as great value options for collectors, including iconic models like the Porsche Carrera GT and more affordable options like the Mazda Miata [22][23] - The Porsche 911 continues to be a strong investment, with various generations maintaining popularity among collectors [30] Economic Indicators - The strength of the classic car market is linked to consumers feeling positive about their financial situations, which encourages purchases despite uncertainties like tariffs [34][36] - The performance of the stock market is seen as a potential tailwind for the classic car market, as strong stock performance may lead to increased spending on luxury items [37]

Core Viewpoint - AM Best has revised the outlooks for Hagerty Reinsurance Limited and Drivers Edge Insurance Company to positive from stable, affirming their Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Ratings of "a-" (Excellent) [1] Group 1 - Hagerty Re and Drivers Edge are wholly owned subsidiaries of Hagerty Insurance Holdings Inc [1] - The revised ratings reflect the companies' strong financial performance and stability in the insurance market [1]

Industry Overview - The Property and Casualty (P&C) insurance sector is expected to benefit from improved pricing, prudent underwriting, increased exposure, and a strong capital position, ranking in the top 12% of the Zacks Industry Rank [1] - The industry is projected to outperform the market over the next three to six months due to these favorable conditions [1] Technological Advancements - Insurers are heavily investing in technology, with an expected generation of approximately $4.7 billion in annual global premiums from AI-related insurance by 2032, reflecting a CAGR of nearly 80% [2] - The adoption of technologies such as blockchain, AI, advanced analytics, telematics, and insurtech solutions is enhancing efficiency and reducing costs for P&C insurers [2] Company Highlights The Travelers Companies Inc. (TRV) - TRV has a strong market presence in auto, homeowners', and commercial property-casualty insurance, with a high retention rate and positive renewal premium changes [6] - Expected revenue and earnings growth rates for TRV are 3.4% and 6.7%, respectively, for the next year, with a 1.5% improvement in earnings estimates over the last 30 days [8] RenaissanceRe Holdings Ltd. (RNR) - RNR is experiencing steady premium growth, with a projected 5.4% year-over-year growth in net premiums earned in 2025 [10] - Expected revenue and earnings growth rates for RNR are -1.8% and 9.4%, respectively, for the next year, with a 0.9% improvement in earnings estimates over the last 30 days [11] The Allstate Corp. (ALL) - ALL is witnessing consistent premium growth, with a 7.6% year-over-year increase in net premiums earned in the first nine months of 2025 [12] - Expected revenue and earnings growth rates for ALL are 5.7% and -14.5%, respectively, for the next year, with a 5% improvement in earnings estimates over the last 30 days [14] Mercury General Corp. (MCY) - MCY is positioned for top-line growth due to sustained premium increases and a higher number of policies written [15] - Expected revenue and earnings growth rates for MCY are 6.7% and 23.5%, respectively, for the next year, with a 13.5% improvement in earnings estimates over the last 30 days [17] Hagerty Inc. (HGTY) - HGTY specializes in insurance services for collector cars and enthusiast vehicles, offering bundled memberships with various benefits [18][19] - Expected revenue and earnings growth rates for HGTY are 7.3% and -14.3%, respectively, for the next year, with a 6.1% improvement in earnings estimates over the last 30 days [20]

Core Insights - Broad Arrow Auctions, a Hagerty company, is set to host its flagship Amelia Auction on March 6-7, 2026, featuring approximately 150 collector cars, marking its fourth year as the official auction house of the Amelia Concours d'Elegance [1][2] The Bill Spurling Collection - The Bill Spurling Collection includes 14 pre- and post-war American classics, offered without reserve, highlighting the passion of a dedicated collector [3][4] - The collection is led by a 1935 Duesenberg Supercharged Model J LaGrande Dual-Cowl Phaeton, estimated between $1,300,000 and $1,600,000, which has a notable history as the company car of Duesenberg President Lucius B. Manning [3][4] - Additional notable cars in the collection include: - 1954 Mercedes-Benz 300 SL Gullwing Coupe - 1931 Cadillac Series 452A V-16 Fleetwood Convertible Coupe, estimated at $425,000 to $525,000 [5][7] - 1931 Cadillac Series 370A V-12 Fleetwood Five-Passenger Phaeton, estimated at $200,000 to $250,000 [7] - 1934 LaSalle Series 50 Convertible Coupe, estimated at $120,000 to $160,000 [7] The Wellington Morton Collection - The Wellington Morton Collection features 14 European, British, and American collector cars, also offered without reserve, showcasing the diverse interests of a lifelong car enthusiast [9][10] - The collection is highlighted by a 1954 Mercedes-Benz 300 SL Gullwing Coupe, estimated between $1,400,000 and $1,800,000, which retains its original matching-numbers components [9][10] - Additional highlights from the collection include: - 1959 Ferrari 250 GT Pinin Farina Coupe Series I, estimated at $350,000 to $450,000 [16] - 2005 Ford GT, estimated at $350,000 to $450,000 [16] - 1967 BSA Lightning, estimated at $15,000 to $25,000 [16] Auction Details - Consignments for the Amelia Auction are open until mid-January 2026, inviting interested consignors to connect with Broad Arrow car specialists [11]

Core Insights - Broad Arrow Auctions, a Hagerty company, is set to host its flagship Amelia Auction on March 6-7, 2026, featuring approximately 150 exceptional collector cars, marking its fourth year as the official auction house of the Amelia Concours [1][11] Collection Highlights - The auction will showcase two prominent private collections: The Bill Spurling Collection and The Wellington Morton Collection, both offered entirely without reserve [2][6] The Bill Spurling Collection - This collection includes 14 pre- and post-war American classics, highlighted by a 1935 Duesenberg Supercharged Model J LaGrande Dual-Cowl Phaeton, estimated between $1,300,000 and $1,600,000 [3][4] - Bill Spurling was a dedicated collector known for acquiring high-quality examples, with a focus on Cadillacs and LaSalles [4] The Wellington Morton Collection - The Wellington Morton Collection features 14 European, British, and American collector cars, including a 1954 Mercedes-Benz 300 SL Gullwing Coupe, estimated between $1,400,000 and $1,800,000 [6][7] - Notable cars include a 1931 Cadillac Series 452A V-16 Fleetwood Convertible Coupe, estimated between $425,000 and $525,000, and a 1934 LaSalle Series 50 Convertible Coupe, estimated between $120,000 and $160,000 [6][7] Auction Details - Consignments for the Amelia Auction are invited through mid-January 2026, with interested consignors encouraged to connect with Broad Arrow car specialists [9]

Core Insights - Broad Arrow Auctions, a Hagerty company, is launching a new online auction series called Global Icons in January 2026, featuring collector cars and motorsport memorabilia [1][2] Auction Format and Offerings - Global Icons will consist of three parts: two online collector car auctions (Global Icons: Europe Online and Global Icons: UK Online) and an online memorabilia auction (Global Icons: Memorabilia Online) [1][2] - The auctions will feature a diverse selection of high-quality pre-war, post-war, and modern collector cars, with a focus on 'iconic' vehicles that hold historical significance [2][3] Featured Lots - A notable early consignment for the auctions includes a 1971 Lamborghini Miura P400 S, estimated between €1.600 million and €1.800 million, which has a rich history and has been carefully restored [3][4] Memorabilia Offerings - The memorabilia auction will include approximately 100 lots, featuring items associated with legendary drivers such as Ayrton Senna and Michael Schumacher [5] Auction Timeline - Bidding for the auctions will open on January 23, 2026, with the Europe and UK Online auctions closing on January 30, and the Memorabilia Online auction closing on February 1 [6] In-Person Previews - Broad Arrow will host in-person previews of many auction lots at various locations across Europe and at its UK headquarters, enhancing the auction experience for bidders [7] Consignment Information - Interested consignors are invited to connect with Broad Arrow for consignment opportunities, with buyer's premiums set at 10% for collector vehicles and 25% for memorabilia [8]

Core Insights - Greenhaven Road Capital reported a third-quarter 2025 return of approximately -9%, with year-to-date returns also at -9% [1] - The fund's performance was impacted by a lack of direct investment in AI, no overlap with major indices like the S&P 500 and Russell 2000, and insufficient holdings in small, high-growth, unprofitable companies that have benefited from the AI landscape [1] Company Focus: Hagerty, Inc. (NYSE:HGTY) - Hagerty, Inc. provides insurance services for collector cars and enthusiast vehicles, with a one-month return of 5.70% and a 52-week gain of 14.25% [2] - As of November 7, 2025, Hagerty's stock closed at $12.43 per share, with a market capitalization of $4.252 billion [2] - Greenhaven Road has more than doubled its shares in Hagerty during 2025, with a core thesis that earnings could grow fivefold from 2024 to 2029 due to a partnership with State Farm, operating leverage from policy growth, and normalization of loss ratios [3] Hedge Fund Interest - Hagerty, Inc. is not among the 30 most popular stocks among hedge funds, with 11 hedge fund portfolios holding the stock at the end of Q2 2025, down from 12 in the previous quarter [4] - While acknowledging Hagerty's potential, the company believes certain AI stocks present greater upside potential and less downside risk [4]