On December 31, 2024, NEUBERGER BERMAN GROUP LLC (Trades, Portfolio) executed a significant transaction involving Hagerty Inc (HGTY, Financial). The firm added 483,324 shares of Hagerty Inc at a trade price of $9.65 per share, increasing its total holdings to 4,725,196 shares. This move reflects the firm's strategic interest in the insurance sector, particularly in specialty automotive insurance, which Hagerty Inc specializes in. The transaction did not significantly impact the firm's portfolio, maintaining a 0.04% position in Hagerty Inc.
NEUBERGER BERMAN GROUP LLC: A Profile
NEUBERGER BERMAN GROUP LLC is a prominent investment firm headquartered in New York, managing a diverse portfolio valued at $128.11 billion. The firm's top holdings include major technology and financial services companies such as Apple Inc (AAPL, Financial), Amazon.com Inc (AMZN, Financial), Microsoft Corp (MSFT, Financial), NVIDIA Corp (NVDA, Financial), and JPMorgan Chase & Co (JPM, Financial). This diverse portfolio underscores the firm's strategic focus on technology and financial services sectors, which are pivotal in today's market landscape.
Understanding Hagerty Inc
Hagerty Inc, listed under the symbol HGTY, is a USA-based provider of specialty automotive insurance, focusing on classic and enthusiast vehicles. The company generates substantial revenue from commissions and fees, serving markets in Europe, Canada, and the United States. Hagerty Inc's business model is centered around underwriting, selling, and servicing insurance policies for classic cars, which is a niche yet growing market segment.
Financial Metrics and Valuation
Hagerty Inc has a market capitalization of $887.719 million and a current stock price of $9.86. The stock is considered significantly undervalued with a GF Value of $18.73, indicating a price to GF Value ratio of 0.53. This suggests that the stock is trading at a discount relative to its intrinsic value, presenting a potential opportunity for value investors. However, the company's financial metrics indicate challenges, with a [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/HGTY) of 3/10 and a [Growth Rank](https://www.gurufocus.com/term/rank-growth/HGTY) of 5/10.
Performance and Growth Indicators
Hagerty Inc's [GF Score](https://www.gurufocus.com/term/gf-score/HGTY) is 68/100, suggesting poor future performance potential. The company has experienced a revenue growth decline of -21.20% over the past three years, reflecting challenges in maintaining its growth trajectory. Despite these challenges, the stock's [Momentum Rank](https://www.gurufocus.com/term/rank-momentum/HGTY) is 8/10, indicating recent market activity and investor interest.
Market Position and Momentum
The stock's year-to-date price change is -0.2%, with a gain of 2.18% since the transaction. This reflects a slight positive momentum in the market, despite the overall decline in revenue growth. Hagerty Inc's position in the market is bolstered by its niche focus on classic and enthusiast vehicles, which continues to attract investor interest.
Institutional Interest in Hagerty Inc
The largest holder of Hagerty Inc shares is Markel Gayner Asset Management Corp, indicating strong institutional interest in the stock. This level of institutional investment suggests confidence in Hagerty Inc's business model and potential for future growth, despite current undervaluation and growth challenges.
Conclusion
NEUBERGER BERMAN GROUP LLC's addition of Hagerty Inc shares highlights the firm's strategic interest in the insurance sector. The transaction reflects confidence in Hagerty Inc's potential, despite its current undervaluation and growth challenges. As the firm continues to diversify its portfolio, this move underscores its commitment to identifying value opportunities in niche markets.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
