Brown & Brown, Inc. $BRO Stock: Pullen Investment Management LLC Raises Stake

Key Points

• Pullen Investment Management more than doubled its Brown & Brown stake in the third quarter, increasing holdings by 101.2% to 35,053 shares worth approximately $2.26 million. Institutional investors collectively own 71.01% of the company.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $76.00. Recent recommendations included upgrades from Keefe, Bruyette & Woods and Weiss Ratings, while Mizuho lowered its target to $78.00.
• Brown & Brown reported quarterly revenue of $1.65 billion and EPS of $1.07, slightly below analyst estimates, while revenue rose 30.4% year over year. The company also increased its quarterly dividend to $0.18 per share, equivalent to a 1.0% annual yield.

Pullen Investment Management LLC raised its position in Brown & Brown, Inc. (NYSE:BRO - Free Report) by 101.2% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 35,053 shares of the financial services provider's stock after purchasing an additional 17,628 shares during the quarter. Pullen Investment Management LLC's holdings in Brown & Brown were worth $2,259,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Brown & Brown in the second quarter worth approximately $1,418,571,000. Principal Financial Group Inc. grew its position in Brown & Brown by 1.6% in the 1st quarter. Principal Financial Group Inc. now owns 15,608,720 shares of the financial services provider's stock valued at $1,017,847,000 after acquiring an additional 246,172 shares during the last quarter. Deutsche Bank AG bought a new position in Brown & Brown in the 2nd quarter valued at $266,941,000. Bank of America Corp DE increased its stake in Brown & Brown by 45.2% in the first quarter. Bank of America Corp DE now owns 3,623,179 shares of the financial services provider's stock worth $236,268,000 after purchasing an additional 1,128,417 shares during the period. Finally, Royal Bank of Canada increased its stake in Brown & Brown by 5.1% in the first quarter. Royal Bank of Canada now owns 3,569,784 shares of the financial services provider's stock worth $232,786,000 after purchasing an additional 173,320 shares during the period. Institutional investors own 71.01% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. Mizuho decreased their target price on Brown & Brown from $83.00 to $78.00 and set an "outperform" rating for the company in a research report on Wednesday, October 7th. Weiss Ratings upgraded shares of Brown & Brown from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday. Truist Financial set a $90.00 price target on shares of Brown & Brown in a research note on Wednesday, July 29th. BMO Capital Markets raised their price target on shares of Brown & Brown from $73.00 to $74.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 29th. Finally, Keefe, Bruyette & Woods upgraded shares of Brown & Brown from an "underperform" rating to an "outperform" rating and set a $77.00 price objective for the company in a report on Monday, October 12th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $76.00.

Brown & Brown Stock Up 0.0%

Shares of NYSE:BRO opened at $72.97 on Monday. Brown & Brown, Inc. has a 52-week low of $53.81 and a 52-week high of $89.26. The stock has a market cap of $24.42 billion, a P/E ratio of 23.02, a price-to-earnings-growth ratio of 2.27 and a beta of 0.60. The business's 50 day moving average is $67.25 and its 200 day moving average is $65.13. The company has a quick ratio of 2.11, a current ratio of 2.11 and a debt-to-equity ratio of 0.58.

Brown & Brown (NYSE:BRO - Get Free Report) last released its quarterly earnings data on Monday, July 27th. The financial services provider reported $1.07 EPS for the quarter, missing the consensus estimate of $1.08 by ($0.01). Brown & Brown had a return on equity of 13.17% and a net margin of 17.75%. The firm had revenue of $1.65 billion for the quarter, compared to analysts' expectations of $1.71 billion. During the same quarter in the previous year, the business earned $1.03 earnings per share. The company's revenue for the quarter was up 30.4% compared to the same quarter last year. Sell-side analysts predict that Brown & Brown, Inc. will post 4.49 EPS for the current year.

Brown & Brown Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 11th. Stockholders of record on Wednesday, November 4th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, November 4th. This is a positive change from Brown & Brown's previous quarterly dividend of $0.1650. Brown & Brown's dividend payout ratio is currently 20.82%.

About Brown & Brown

Brown & Brown, Inc is an insurance brokerage and risk management company headquartered in Daytona Beach, Florida. The company helps businesses, public entities, individuals and other organizations identify, manage and transfer risk by arranging insurance coverage and providing related advisory services.

Its operations include retail insurance brokerage, national programs, wholesale brokerage and services. Brown & Brown offers property and casualty insurance, employee benefits, personal insurance, surety and other specialized coverage.

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