Brown & Brown, Inc. $BRO Stock Purchased by Evergreen Capital Management LLC

Key Points

• Evergreen Capital Management increased its Brown & Brown stake by 160.7% in the third quarter, ending with 38,715 shares valued at approximately $2.54 million. Institutional investors collectively own 71.01% of the company.
• Brown & Brown reported quarterly revenue of about $1.70 billion and EPS of $1.07, missing analyst estimates of $1.76 billion and $1.08, respectively, despite 7.4% year-over-year revenue growth.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $76; the company also raised its quarterly dividend to $0.18 per share.

Evergreen Capital Management LLC boosted its stake in shares of Brown & Brown, Inc. (NYSE:BRO - Free Report) by 160.7% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 38,715 shares of the financial services provider's stock after buying an additional 23,866 shares during the period. Evergreen Capital Management LLC's holdings in Brown & Brown were worth $2,539,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of BRO. BlackRock Inc. acquired a new position in shares of Brown & Brown in the second quarter worth about $1,418,571,000. Deutsche Bank AG purchased a new position in shares of Brown & Brown in the second quarter worth approximately $266,941,000. Bank of America Corp DE purchased a new position in shares of Brown & Brown in the second quarter worth approximately $228,051,000. Madison Asset Management LLC acquired a new stake in shares of Brown & Brown during the second quarter valued at approximately $138,630,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Brown & Brown during the second quarter valued at approximately $88,589,000. Institutional investors and hedge funds own 71.01% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently commented on BRO. Jefferies Financial Group restated a "hold" rating on shares of Brown & Brown in a research report on Wednesday, July 29th. Morgan Stanley decreased their price objective on shares of Brown & Brown from $60.00 to $55.00 and set an "underweight" rating for the company in a research note on Tuesday, October 6th. TD Cowen started coverage on shares of Brown & Brown in a research report on Monday, October 12th. They set a "buy" rating and a $82.00 price objective on the stock. UBS Group reissued a "neutral" rating and set a $73.00 target price (up from $65.00) on shares of Brown & Brown in a research note on Wednesday, July 8th. Finally, Wells Fargo & Company cut their target price on shares of Brown & Brown from $69.00 to $68.00 and set an "equal weight" rating on the stock in a research note on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Brown & Brown currently has a consensus rating of "Hold" and an average price target of $76.00.

Brown & Brown Trading Down 2.1%

Shares of NYSE BRO opened at $71.44 on Tuesday. The company has a current ratio of 2.11, a quick ratio of 2.11 and a debt-to-equity ratio of 0.58. Brown & Brown, Inc. has a one year low of $53.81 and a one year high of $89.05. The business has a 50-day moving average price of $67.25 and a two-hundred day moving average price of $67.09. The firm has a market capitalization of $23.90 billion, a PE ratio of 22.54, a PEG ratio of 2.27 and a beta of 0.60.

Brown & Brown (NYSE:BRO - Get Free Report) last issued its earnings results on Monday, October 26th. The financial services provider reported $1.07 earnings per share for the quarter, missing analysts' consensus estimates of $1.08 by ($0.01). The business had revenue of $1.70 billion during the quarter, compared to analyst estimates of $1.76 billion. Brown & Brown had a net margin of 17.75% and a return on equity of 13.17%. Brown & Brown's revenue for the quarter was up 7.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.05 EPS. As a group, analysts predict that Brown & Brown, Inc. will post 4.49 earnings per share for the current fiscal year.

Brown & Brown Increases Dividend

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

Brown & Brown News Roundup

Here are the key news stories impacting Brown & Brown this week:

• Positive Sentiment: Third-quarter revenue increased 7.4% year over year to $1.725 billion, while net income attributable to Brown & Brown rose 5.7% to $240 million. Adjusted diluted EPS increased 1.9% to $1.07. Brown & Brown third-quarter results
• Positive Sentiment: For the first nine months, revenue grew 23.4% to $5.3 billion and net income increased 20.8% to $954 million, supported partly by the integration of approximately 5,000 employees from the Accession acquisition. Brown & Brown nine-month results
• Neutral Sentiment: Management said the company continued winning customers despite a challenging insurance-rate environment. Investors will look for additional detail during the October 27 conference call regarding organic growth, acquisition integration and the outlook.
• Negative Sentiment: Adjusted EPS of $1.07 fell short of the $1.08 consensus estimate, while revenue of $1.70 billion missed the $1.76 billion analyst forecast. Brown & Brown misses third-quarter estimates
• Negative Sentiment: Core organic revenue grew only 1.2%—1.5% including contingents—raising concerns that reported growth remains heavily dependent on acquisitions. Adjusted EBITDAC margin declined to 34.6% from 36.6%, and diluted GAAP EPS decreased 1.5% to $0.67. Brown & Brown organic growth and margin results

Brown & Brown Company Profile

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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