Auto insurer Hagerty slides after upsized $110.5 mln secondary offering
HGTY•Recent trading and analyst view
Hagerty, a provider of insurance coverage for classic cars, boats and motorcycles, has about 343.6 million shares outstanding.
On Aug. 5, the stock finished up about 15% after the company posted a smaller-than-expected second-quarter adjusted loss per share of 2 cents and boosted its annual outlook.
Through Wednesday, the stock was up about 23% over the past three months, leaving it down 1.3% year to date.
The average rating of 9 analysts is "hold"; median price target is $15, per LSEG.
Offering details and use of proceeds
The offering size increased from 8.25 million shares and was priced at a 9.9% discount to the stock's last close.
HHC will use the net offering proceeds to effect a redemption for the benefit of the Kim Hagerty Revocable Trust, of a corresponding number of its HHC shares.
Wells Fargo and JP Morgan were lead bookrunners for the offering, among other investment banks.
Hagerty shares fall after secondary offering pricing
Specialty vehicle insurance provider Hagerty Inc's HGTY.N shares were down 11.1% before the bell on Thursday to $11.80 after an overnight secondary offering was priced.
Michigan-based Hagerty late Wednesday announced stockholder Hagerty Holding Corp (HHC) offloaded 9.25 million shares at $11.95 for about $110.5 million.
