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

Key Points

• Sterling Capital Management increased its Brown & Brown stake by 1,101.7% in the third quarter, ending with 106,666 shares valued at approximately $7.2 million. Institutional investors and hedge funds collectively own 71.01% of the company.
• Brown & Brown’s shares recently traded at $72.97, while analysts maintain a consensus “Hold” rating and an average price target of $76.00.
• The company raised its quarterly dividend from $0.165 to $0.18 per share, equivalent to $0.72 annually and a 1.0% yield. Its latest quarterly results slightly missed analyst estimates, though revenue increased 30.4% year over year.

Sterling Capital Management LLC grew its stake in Brown & Brown, Inc. (NYSE:BRO - Free Report) by 1,101.7% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 106,666 shares of the financial services provider's stock after buying an additional 97,790 shares during the period. Sterling Capital Management LLC's holdings in Brown & Brown were worth $7,191,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. BlackRock Inc. acquired a new stake in Brown & Brown in the 2nd quarter worth $1,418,571,000. Deutsche Bank AG acquired a new position in Brown & Brown in the 2nd quarter valued at approximately $266,941,000. Bank of America Corp DE acquired a new position in Brown & Brown in the 2nd quarter valued at approximately $228,051,000. Madison Asset Management LLC bought a new stake in shares of Brown & Brown in the 2nd quarter worth approximately $138,630,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Brown & Brown in the 2nd quarter worth approximately $88,589,000. 71.01% of the stock is currently owned by institutional investors and hedge funds.

Brown & Brown Price Performance

NYSE BRO traded down $1.51 during trading hours on Friday, reaching $72.97. 2,499,774 shares of the company's stock were exchanged, compared to its average volume of 2,215,480. The firm has a fifty day moving average of $67.25 and a 200-day moving average of $65.14. Brown & Brown, Inc. has a one year low of $53.81 and a one year high of $89.26. The stock has a market cap of $24.42 billion, a PE ratio of 23.02, a price-to-earnings-growth ratio of 2.32 and a beta of 0.60. 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 (NYSE:BRO - Get Free Report) last issued its quarterly earnings data on Monday, July 27th. The financial services provider reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.08 by ($0.01). The business had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.71 billion. Brown & Brown had a net margin of 17.75% and a return on equity of 13.17%. The company's revenue for the quarter was up 30.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.03 EPS. On average, equities research 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 disclosed a quarterly dividend, which will be paid on Wednesday, November 11th. Shareholders of record on Wednesday, November 4th will be given a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.0%. The ex-dividend date is Wednesday, November 4th. This is a boost from Brown & Brown's previous quarterly dividend of $0.1650. Brown & Brown's dividend payout ratio is 20.82%.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Mizuho cut their target price on Brown & Brown from $83.00 to $78.00 and set an "outperform" rating for the company in a research note on Wednesday, October 7th. Weiss Ratings raised shares of Brown & Brown from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday. UBS Group restated a "neutral" rating and set a $73.00 price target (up from $65.00) on shares of Brown & Brown in a research note on Wednesday, July 8th. Barclays lowered their price objective on Brown & Brown from $76.00 to $71.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 7th. Finally, JPMorgan Chase & Co. lifted their price objective on Brown & Brown from $80.00 to $83.00 and gave the company a "neutral" rating in a report on Thursday, October 1st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Brown & Brown currently has a consensus rating of "Hold" and an average price target of $76.00.

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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