Partnership-driven inflection for Hagerty stock

Hagerty (HGTY) is back in focus after Putnam Leasing announced a partnership with Hagerty and Broad Arrow, linking collector car auctions, specialized insurance, and tailored leasing into a single, more integrated offering for high-value vehicle buyers.

At a share price of $10.89, Hagerty has seen a 7.18% 7 day share price return and a 9.01% 30 day share price return, yet its year to date share price return is down 17.19%, while the 1 year total shareholder return of 14.51% points to a stronger outcome over a longer holding period.

If this kind of partnership story has you thinking about where else growth could come from, take a look at the 20 top founder-led companies to spot other potentially under followed leaders.

With the stock down 17.19% year to date but up 18.76% over three years and trading at a discount to analyst price targets, is Hagerty still undervalued, or is the market already pricing in future growth?

Most Popular Narrative: 27.4% Undervalued

Hagerty's most followed narrative points to a fair value of $15.00, above the last close at $10.89, framing the stock as materially undervalued in that view.

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.

Curious what kind of revenue trajectory and margin expansion would need to sit behind that valuation gap? The narrative leans on aggressive earnings compounding, richer profitability and a compressed future earnings multiple that is usually reserved for far slower growth stories.

Result: Fair Value of $15.00 (UNDERVALUED)

However, this depends on collector car enthusiasm and auction activity remaining stable, and on Hagerty Re managing 100% of U.S. underwriting risk without a sustained combined ratio squeeze.

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Another view on Hagerty's valuation

That 27.4% undervalued fair value of $15.00 from the bullish narrative sits awkwardly next to the SWS DCF model, which points to a future cash flow value of $6.62, below the current $10.89 share price and implying Hagerty screens as overvalued on that method. Which lens do you trust more for a long term view?

For a closer look at the assumptions behind that cash flow view, including how sensitive it is to growth and discount rates, Look into how the SWS DCF model arrives at its fair value.

Next Steps

Mixed signals on value and risk so far? Use this as a starting point, then move quickly to stress test the upside by reviewing the 2 key rewards.

Looking for more investment ideas?

Once you have a view on Hagerty, do not stop there. The best portfolios usually come from comparing several clear, data backed ideas side by side.

• Spot potential turnaround stories early by scanning the 24 elite penny stocks with strong financials that already show stronger balance sheets and business traction.
• Zero in on quality at a discount by reviewing the 46 high quality undervalued stocks that pair solid fundamentals with pricing that still looks reasonable.
• Steady your portfolio with the 8 dividend fortresses that focus on higher yielding companies with a track record of consistent shareholder payouts.

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.