Exploring Hagerty, Inc. (HGTY) Investor Profile: Who’s Buying and Why?

You're looking at Hagerty, Inc. (HGTY) and trying to figure out if the big money agrees with your thesis, right? Well, the short answer is yes, they defintely do, and the institutional conviction is intense: over 84% of the stock is currently held by institutions, which tells you this isn't a retail-driven story. We're not talking about small bets, either; State Farm Mutual Automobile Insurance Co. is the anchor, holding a massive 51.8 million shares as of the third quarter of 2025, while firms like Neuberger Berman Group LLC and Polar Capital Holdings Plc have been aggressively boosting their stakes by 44.8% and 9.4% respectively, just ahead of the November 2025 reporting deadlines. Why the accumulation? Because the company's 2025 performance is delivering: they reported Q3 Total Revenue of $380.0 million, an 18% jump year-over-year, and they've raised their full-year net income growth outlook to a stunning 58-65%. This is a specialty insurer with a sticky, high-retention model, plus its Hagerty Drivers Club membership is now at approximately 921,000 paid members. The money is following the growth. So, who's buying? The biggest names in finance are, and they're buying because the numbers are working.

Who Invests in Hagerty, Inc. (HGTY) and Why?

The investor profile for Hagerty, Inc. (HGTY) is defintely a blend of strategic, long-term institutional capital and active growth-focused hedge funds, all drawn to the company's unique dual-engine business model. The direct takeaway is this: you're seeing a classic growth-stock accumulation pattern, but with a massive strategic anchor provided by a major insurance partner.

As of late 2025, the ownership structure is heavily weighted toward institutional and strategic holders. The largest single shareholder is State Farm Mutual Automobile Insurance Company, which holds a substantial 52.22% of the company's stock, reflecting a deep strategic partnership rather than a typical portfolio investment. This stake locks in a huge distribution channel and provides stability. Beyond this strategic block, institutional investors and hedge funds own roughly 20.51% of the public float, with company insiders holding around 16.70%. The remaining shares are held by retail investors and other public entities.

Here's the quick math on the key investor types:

• Strategic Institutional: State Farm Mutual Automobile Insurance Company at 52.22%.
• Active Institutional/Hedge Funds: About 20.51% of the public float, actively trading.
• Insiders/Management: Approximately 16.70%, aligning management's interests with shareholders.

Investment Motivations: The Growth Story

Investors are attracted to Hagerty, Inc. (HGTY) primarily for its clear, high-growth trajectory and its dominant position in a niche market-collectible vehicle insurance and the broader automotive enthusiast ecosystem. This isn't a value play; it's a growth story with an insurance backbone. The company's dual focus on specialty insurance and its Hagerty Drivers Club (HDC) membership/Marketplace ecosystem provides a strong moat, or competitive advantage, that few can replicate.

The financial guidance for the 2025 fiscal year confirms this growth focus. Hagerty, Inc. is guiding for Total Revenue between $1.368 billion and $1.380 billion, representing a 14-15% year-over-year growth. More importantly, the company is translating that top-line growth into significantly higher profit growth, with Net Income projected to be between $102 million and $110 million, an increase of 30% to 40% over the prior year. This margin expansion is a huge draw.

What really drives the excitement is the Marketplace segment-auctions, media, and events-which saw a staggering 135% growth year-to-date through Q3 2025. That's where the high-margin, passion-based revenue lives.

Investment Strategies: Targeting Long-Term Ecosystem Value

The strategies employed by the major investors in Hagerty, Inc. (HGTY) are a mix of long-term strategic holding and active growth-oriented accumulation. You don't see a significant dividend yield here-the company is reinvesting for scale-so the focus is strictly on capital appreciation.

Long-Term Strategic Holding: The massive State Farm stake and the significant holdings by other long-term institutions like Markel Group and Vanguard Group Inc. point to a buy-and-hold strategy. These investors are betting on the company's long-term goal to more than double its policy count to three million by 2030, leveraging its technology investments and new partnerships, like the one with Liberty Mutual and Safeco. The investment is in the 'emotional equity' of the brand, which is a powerful retention tool.

Active Growth Investing: Many hedge funds and asset managers are actively accumulating shares, especially in the second half of 2025. Firms like Neuberger Berman Group LLC boosted their position by 44.8% in Q3 2025, purchasing an additional 2,490,359 shares, and Pembroke Management LTD increased its stake by 127.6%. This is a clear signal of conviction in the near-term earnings acceleration driven by new partnerships and the rollout of programs like the State Farm Classic Plus program to more than 25 states in 2025. They are playing the momentum of the company's operational execution and its high P/E ratio of 48.52, which is typical for a stock priced for significant future growth.

If you want to understand the foundation of this investment thesis, you should look at the company's history and its unique ownership structure: Hagerty, Inc. (HGTY): History, Ownership, Mission, How It Works & Makes Money. That context is crucial for mapping the long-term value.

Your next step should be to track the Q4 2025 earnings release to see if the company hits its Net Income guidance of $102 million to $110 million; that number is the real measure of their operational efficiency gains.

Institutional Ownership and Major Shareholders of Hagerty, Inc. (HGTY)

If you're looking at Hagerty, Inc. (HGTY), the first thing you need to understand is who actually owns the company. The investor profile is not typical; it's dominated by a massive, strategic stake, which is defintely a key factor in your investment thesis. Institutional investors-think mutual funds, pension funds, and major insurance companies-hold a substantial portion of the stock, totaling around 88.5 million shares, spread across 146 different owners.

The biggest player, by a huge margin, is State Farm Mutual Automobile Insurance Co., which holds a foundational position of approximately 51.8 million shares, representing about 52.22% of the company's total ownership as of mid-2025. That's a strategic anchor, not just a passive investment. Other major funds are also involved, though their stakes are much smaller in comparison. These are the long-term holders providing a base of stability.

Here's a quick look at the top institutional holders and their positions based on the most recent 2025 fiscal year filings:

The Near-Term Trend: Aggressive Institutional Accumulation

What's more interesting than the static ownership list is the recent buying activity, which tells you where the smart money sees the near-term opportunity. The third quarter of 2025 saw a significant surge in institutional accumulation (the net buying of shares), indicating a growing conviction in Hagerty's strategy and future earnings power.

In Q3 2025 alone, we saw 60 institutional investors add to their positions, compared to 35 that decreased their stakes. This is a strong signal. The most aggressive moves came from major funds adding millions of shares:

• T. Rowe Price Investment Management, Inc. added 5,161,415 shares, an astronomical increase of over +9,491%.
• Neuberger Berman Group LLC boosted its position by 2,490,359 shares, a +44.8% jump.
• Pembroke Management, LTD increased its stake by 1,267,754 shares, a +127.6% change.

Here's the quick math: when you see this level of buying from sophisticated funds, they are betting on more than just a small price bump. They are buying into the company's growth story, likely anticipating that Hagerty will meet or beat its fiscal year 2025 guidance of $0.22 earnings per share (EPS). This heavy accumulation suggests they see the stock as undervalued at recent prices.

Impact on Stock Price and Corporate Strategy

These large institutional investors play a crucial role. First, the sheer volume of their buying and selling can directly influence the stock price. The Q3 2025 accumulation, for instance, provides a strong tailwind, absorbing selling pressure and adding stability. Second, the presence of a massive, strategic shareholder like State Farm means that major corporate decisions, especially those concerning the insurance business and long-term strategy, are often aligned with a powerful partner's interests.

The institutional backing also gives management a longer leash to execute its strategy, like expanding the Hagerty Drivers Club (HDC) membership and its auction services, without the constant pressure of short-term activist investors. The consensus analyst rating is currently a 'Hold,' but the aggressive buying by funds like T. Rowe Price suggests some investors are looking past that immediate assessment. They are voting with their capital, indicating confidence in the business model that combines specialty vehicle insurance with an enthusiast-focused media and events ecosystem.

If you want to dig deeper into the company's underlying financial strength that these investors are reacting to, you should check out Breaking Down Hagerty, Inc. (HGTY) Financial Health: Key Insights for Investors. Your next step should be to compare the recent institutional buying price points to your own valuation model to see if you agree with this strong accumulation trend.

Key Investors and Their Impact on Hagerty, Inc. (HGTY)

You want to know who is buying Hagerty, Inc. (HGTY) and what that means for your investment. The short answer is that the company's investor profile is a fascinating split: a dominant strategic partner with an iron grip on the board, plus a growing cohort of institutional funds betting on the company's strong 2025 growth trajectory. This dual structure defintely influences stock movement and long-term strategy.

The biggest player, by a massive margin, is State Farm Mutual Automobile Insurance Company. They hold a staggering 51,800,000 shares as of the Q3 2025 filings, representing approximately 51.5% of the company's ownership. This isn't just a passive investment; State Farm is a strategic partner, meaning their stake is tied to the core insurance business. This level of control means they have a huge say in major corporate decisions, essentially anchoring the company's long-term stability and strategic direction.

The Strategic Anchor: State Farm's Dominance

When a single entity holds over half the company, it changes the entire dynamic. State Farm's primary influence is ensuring Hagerty, Inc. remains focused on its specialty vehicle insurance niche, which is a key part of their own broader insurance ecosystem. They aren't looking for a quick flip; they want sustained, profitable growth from a partner that serves the lucrative, low-loss classic car market.

This strategic alignment was underscored by their participation in a $105 million capital raise in 2023, alongside Markel Group and the Hagerty family itself, to fund profitable growth initiatives. That's a clear commitment to the long haul. What this estimate hides is that State Farm's majority ownership limits the impact of all other institutional investors, making a hostile takeover or activist campaign practically impossible. It keeps the company focused on its core mission.

Institutional Funds Piling In: The Growth Bet

While State Farm provides the stability, a host of major institutional investors are actively increasing their stakes, drawn by Hagerty, Inc.'s impressive financial performance in 2025. These funds are betting on the company's ability to execute on its raised guidance, which projects full-year 2025 Total Revenue growth of 14-15% and Net Income growth of 58-65%.

Here's the quick math on who's been buying, based on Q3 2025 data. These are the funds that see the company's unique loss ratio (which improved to 42.1% year-to-date 2025, far better than many larger property and casualty peers) as a competitive advantage.

You can see the strong buying interest. Pembroke Management, LTD, for instance, nearly tripled their position with a 127.6% increase in shares, signaling high conviction in the stock's near-term potential. Even the index giants like Vanguard Group Inc. and Blackrock, Inc. are boosting their ownership, which is typical as the company's market capitalization of $4.65 billion (as of November 2025) makes it a more relevant part of their index-tracking funds.

Recent Moves and the Insider View

The recent moves by these institutions show a clear accumulation trend, but you should also watch insider activity. While institutions were buying, one Director, Robert I. Kauffman, sold 15,270 shares in October 2025 for a total transaction value of $169,802.40. Insider selling isn't always a red flag-it can be for personal liquidity-but it's a data point to consider against the backdrop of institutional buying.

The overall institutional ownership, excluding the massive State Farm stake, is still a significant factor, with institutional investors owning about 20.51% of the stock. This capital influx provides liquidity and market validation, helping to support the stock price as the company continues to deliver strong results, like the year-to-date Q3 2025 Net Income of $120.7 million. If you want a deeper dive into the company's financial footing, check out Breaking Down Hagerty, Inc. (HGTY) Financial Health: Key Insights for Investors.

Actionable Insight: Monitor the next round of 13F filings (which will cover Q4 2025) for continued accumulation by Neuberger Berman Group LLC and Pembroke Management, LTD. Their high-percentage increases suggest a strong belief in the company's growth story beyond just index tracking.

Market Impact and Investor Sentiment

You want to know who is buying Hagerty, Inc. (HGTY) and why, and the short answer is that institutional investors are showing cautious accumulation, but the overall sentiment is a pragmatic 'Hold' right now, despite strong financial results. The market is digesting the company's high valuation premium against its impressive growth.

As of late 2025, institutional investors hold a significant portion of the publicly traded stock, ranging from about 20.51% to over 26.22% of the shares. This group includes major players like State Farm Mutual Automobile Insurance Company, Neuberger Berman Group LLC, and Polar Capital Holdings Plc. For a niche specialty insurer and enthusiast brand, that level of institutional backing-where the largest shareholder is a strategic partner like State Farm-is defintely a strong signal of long-term business confidence, even if the stock price is currently consolidating.

Here's the quick math on who owns the company:

• Institutional Investors: ~26.22%
• Insiders (including the Hagerty family and related entities): ~21.77%
• Retail/General Public: ~52.01%

The core of the investor profile is a blend of strategic, long-term holders (like State Farm) and growth-focused asset managers (like Neuberger Berman) who see the value in Hagerty's unique ecosystem of insurance, membership, and marketplace offerings. You can read more about the foundation of this business model here: Hagerty, Inc. (HGTY): History, Ownership, Mission, How It Works & Makes Money.

Recent Market Reactions and Ownership Moves

The stock market has reacted positively to Hagerty, Inc.'s operational performance in 2025, but the reaction to ownership changes is more nuanced. The stock hit a new 52-week high of $13.86 in November 2025, which capped a rally of over 21.8% in the 90 days leading up to the strong third-quarter earnings announcement.

This upward momentum was fueled by the company's Q3 2025 results, which blew past analyst expectations. Hagerty reported an Earnings Per Share (EPS) of $0.13, significantly beating the consensus estimate of $0.09. Plus, the company's Q3 2025 Total Revenue came in at $380.0 million, an 18% increase year-over-year. That's a clear demonstration of business execution.

What this estimate hides is the insider selling. Over the last three months of 2025, insiders have been net sellers, offloading approximately 478,821 shares worth about $5.6 million. While this can sometimes spook the market, in this case, it appears to be a natural profit-taking event following the stock's run-up, especially since the overall insider ownership remains high at over 16%.

Analyst Perspectives on Key Investors' Impact

Wall Street analysts are focused on how Hagerty, Inc.'s major partners translate into future growth, and the outlook is generally positive, even if the consensus rating is a cautious 'Hold.' The average price target sits around $13.88 to $14.00, with a high-end target of $15.00 from firms like Keefe, Bruyette & Woods.

The impact of key investors is tied directly to strategic partnerships. The ramping partnership with State Farm is expected to accelerate new business growth by providing access to a massive customer base and agent network. This is the core driver behind the raised full-year 2025 outlook, where management now expects Total Revenue growth of 14-15% and Net Income growth of 58-65%.

The recent announcement of a new partnership with Liberty Mutual, the seventh-largest auto insurer in the US, is also a big deal. Analysts see these partnerships as a validation of Hagerty's Managing General Agent (MGA) model and its specialized underwriting expertise. It means the big players are choosing to partner, not compete, which strengthens Hagerty's moat (competitive advantage). The table below summarizes the current analyst view:

The key action for you is to watch the conversion rates from the State Farm and Liberty Mutual channels. If Hagerty can maintain its year-to-date 2025 Total Revenue pace of $1,068.3 million and continue expanding its high-margin Marketplace revenue, which was up 135% year-to-date, those price targets will be raised again. The risk is that the stock's Price-to-Earnings (P/E) ratio is high compared to the broader US Insurance industry, implying that much of this future growth is already priced in.