Hagerty (HGTY) has drawn fresh attention after recent trading left the stock near its latest close of US$13.59, prompting investors to reassess the specialist insurer's performance and valuation.
Recent trading tells a mixed story, with a modest 1-day share price gain and a 7-day share price return that moved lower. However, a 90-day share price return of 15.56% and a 1-year total shareholder return of 13.16% signal that momentum in Hagerty has been building over the medium term despite short-term fluctuations.
Compare Hagerty's recent momentum with other insurers by scanning our hand picked list of solid balance sheet and fundamentals (24 results) that have been holding up through shifting sentiment.
For Hagerty, that recent move near US$13.59 could either mirror improving fundamentals in its specialist insurance and marketplace model, or simply reflect a change in sentiment. The valuation work now has to separate those stories.
Most Popular Narrative: 15% Undervalued
Hagerty's most followed valuation storyline anchors on a Fair Value of $16.00 against the latest $13.59 close, setting up a case that current pricing lags narrative expectations built on earnings potential and capital deployment.
The shift toward Hagerty Re retaining 100% of the underwriting risk on the U.S. book, combined with an 87% combined ratio and a 77% rise in adjusted EBITDA to US$85 million in Q1 2026, points to greater control over insurance economics that can support higher earnings and cash flow over time.
See why 0 investors see Hagerty as 15% undervalued .
Result: Fair Value of $16.00 (UNDERVALUED)
Still, Hagerty's reliance on collector car enthusiasm and the decision for Hagerty Re to retain 100% of U.S. underwriting risk could both pressure earnings if conditions turn.
Find out about the key risks to this Hagerty narrative .
Another View: What Hagerty's P/E Is Telling You
The first fair value story paints Hagerty as 15% undervalued at $16.00. The P/E picture is less forgiving. At 86.8x earnings, the stock trades well above the US Insurance industry on 10.7x and peers on 48.8x, and it even sits above a fair ratio of 35.9x. That gap points to real valuation risk if sentiment cools before earnings catch up.
If you want to see how those numbers stack up in more detail, you can dig into our valuation breakdown through the See what the numbers say about this price — find out in our valuation breakdown. .
For a visual sense of how Hagerty compares to the sector on this earnings metric, check the latest chart in
.
Next Steps
Plenty of signals around Hagerty are mixed, which is exactly why it pays to move quickly, test the numbers yourself and decide where the real balance lies between risk and upside. To see how the current concerns and potential rewards stack up side by side, start with our breakdown of 1 key reward and 1 important warning sign
Looking for more investment ideas beyond Hagerty?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include HGTY .
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