What Hagerty Insiders Are Really Saying with Their Stock Sales

The smart money is moving. For Kenneth Ahn, Hagerty's President of Marketplace, the exit has been a steady, pre-planned affair. In January alone, he sold 351,350 shares across multiple transactions, generating roughly $4.47 million in proceeds. The latest sale, on January 26th, was a clean $620,500 transaction at $12.41 per share. This isn't a panic sell triggered by bad news. The sale was executed through a pre-arranged Rule 10b5-1 trading plan, a mechanism adopted back in September 2025. That timing is critical. It means these sales were scheduled well before the recent stock pop, signaling a deliberate, not reactive, exit.

The context makes the signal even clearer. Ahn is cashing out at a time when the stock trades at a rich valuation, with a price-to-earnings ratio of about 43. For a company with a $4.15 billion market cap, that multiple suggests the market is pricing in significant future growth. Yet the insider with skin in the game is systematically reducing his position. This sustained, pre-planned selling is a classic red flag. It indicates a lack of alignment between the current premium valuation and the insider's own assessment of the company's intrinsic value. When the smart money is taking money off the table at these levels, it's a signal worth heeding.

Smart Money vs. The Hype

The disconnect between the company's own narrative and the actions of its insiders is stark. Hagerty is actively building hype with its annual 2026 Bull Market List, which highlights modern enthusiast vehicles from the '90s and '00s. This list is a direct play to support the stock's premium valuation, suggesting these cars are the future of collectible value. Yet the insider with the deepest operational view is cashing out at those same elevated prices.

Institutional accumulation, the other pillar of a bullish story, is absent. The largest known holder, BNP Paribas, increased its stake modestly in the third quarter but still holds a tiny position of 5,131 shares valued at $62,000. That's a whale wallet, not a whale. There's no evidence of significant smart money flowing in to counterbalance the insider selling. The analyst consensus of a "Moderate Buy" with a $14.13 target offers a 17% upside, but it's not backed by insider buying. It's a narrative of potential, not conviction.

The setup is classic. The company is pumping a bullish story to justify a rich multiple, while the smart money is taking money off the table. When the narrative and the insider signals diverge this sharply, the latter is the more reliable indicator. The hype is building, but the skin in the game is leaving.

Catalysts and What to Watch

The smart money is on the sidelines, but the market is waiting for a catalyst. The upcoming events will test whether the insider selling is a one-off liquidity event or a sustained exit. The first watchpoint is simple: monitor February filings. If the selling pace continues, especially with new transactions under the same Rule 10b5-1 plan, it confirms a deliberate reduction of skin in the game. Any deviation-like a pause or a change in the plan-would be a signal to watch. For now, the pattern is clear.

The second and more critical test comes with the Q4 earnings report. The company's narrative hinges on exceptional growth justifying its 43x P/E. The report will show if that story is holding. Look for management commentary on growth drivers, margin trends, and the valuation of its core marketplace business. Any hint that the premium is fully baked into the numbers could validate the insider actions. Conversely, a strong beat on earnings and a bullish forward outlook would contradict the thesis, suggesting the selling is merely personal liquidity.

The key risk to the bearish thesis is that the stock's high multiple is justified. If Hagerty reports blowout results that accelerate growth, the insider selling could be dismissed as a personal financial move. The thesis fails if earnings beat expectations and the stock rallies on the news. In that scenario, the smart money exit would be a red herring, not a warning.

The bottom line is one of divergence. The company is building a bullish story, while its insider is systematically cashing out at a rich valuation. The upcoming earnings report and February filings are the next data points to see if the narrative or the insider signal holds. For now, the smart money is taking its profits.