Ethic Inc. Purchases 52,776 Shares of Brown & Brown, Inc. $BRO

Key Points

• Ethic Inc. increased its Brown & Brown stake by 130.1% in the third quarter, adding 52,776 shares and bringing its holdings to 93,338 shares, valued at about $6 million.
• Brown & Brown’s latest quarter fell slightly short of analyst expectations: EPS was $1.07 versus $1.08 expected, and revenue was $1.70 billion versus $1.76 billion expected. Revenue nevertheless grew 7.4% year over year.
• The company raised its quarterly dividend from $0.165 to $0.18 per share. Analysts’ consensus rating was “Hold,” with an average price target of $75.47.

Ethic Inc. lifted its position in shares of Brown & Brown, Inc. (NYSE:BRO - Free Report) by 130.1% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 93,338 shares of the financial services provider's stock after purchasing an additional 52,776 shares during the period. Ethic Inc.'s holdings in Brown & Brown were worth $5,998,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. BlackRock Inc. acquired a new position in Brown & Brown in the second quarter valued at $1,418,571,000. Principal Financial Group Inc. increased its holdings in shares of 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 purchasing an additional 246,172 shares in the last quarter. Deutsche Bank AG acquired a new stake in shares of Brown & Brown in the second quarter valued at about $266,941,000. Bank of America Corp DE lifted its stake in shares of 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 valued at $236,268,000 after purchasing an additional 1,128,417 shares during the period. Finally, Royal Bank of Canada lifted its stake in shares of 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 valued at $232,786,000 after purchasing an additional 173,320 shares during the period. Institutional investors and hedge funds own 71.01% of the company's stock.

Brown & Brown Price Performance

Brown & Brown stock opened at $70.89 on Tuesday. The firm has a market capitalization of $23.51 billion, a PE ratio of 22.43, a P/E/G ratio of 2.42 and a beta of 0.52. Brown & Brown, Inc. has a 52 week low of $53.81 and a 52 week high of $82.57. The firm's 50-day simple moving average is $66.95 and its 200 day simple moving average is $66.64. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 0.58.

Brown & Brown (NYSE:BRO - Get Free Report) last posted its earnings results on Monday, October 26th. The financial services provider reported $1.07 earnings per share for the quarter, missing the consensus estimate of $1.08 by ($0.01). Brown & Brown had a net margin of 17.63% and a return on equity of 13.29%. The business had revenue of $1.70 billion for the quarter, compared to analysts' expectations of $1.76 billion. During the same quarter last year, the business posted $1.05 earnings per share. The business's revenue was up 7.4% compared to the same quarter last year. On average, equities research analysts predict that Brown & Brown, Inc. will post 4.44 EPS for the current fiscal year.

Brown & Brown Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 11th. Stockholders of record on Wednesday, November 4th will be paid a dividend of $0.18 per share. This is a positive change from Brown & Brown's previous quarterly dividend of $0.1650. The ex-dividend date of this dividend is Wednesday, November 4th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.0%. Brown & Brown's dividend payout ratio is 22.78%.

Wall Street Analyst Weigh In

BRO has been the subject of a number of research analyst reports. TD Cowen assumed coverage on shares of Brown & Brown in a report on Monday, October 12th. They issued a "buy" rating and a $82.00 target price for the company. Truist Financial reduced their price target on shares of Brown & Brown from $90.00 to $85.00 and set a "buy" rating for the company in a research report on Wednesday, October 28th. UBS Group decreased their price target on Brown & Brown from $73.00 to $72.00 and set a "neutral" rating on the stock in a research note on Monday, November 2nd. Keefe, Bruyette & Woods upgraded Brown & Brown from an "underperform" rating to an "outperform" rating and set a $77.00 price target on the stock in a report on Monday, October 12th. Finally, Citizens Jmp dropped their price objective on Brown & Brown from $78.00 to $75.00 and set a "market outperform" rating for the company in a research note on Monday, October 12th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $75.47.

About Brown & Brown

Brown & Brown, Inc is an insurance brokerage and risk management company that helps businesses, public entities and individuals assess and manage risk. Its services include arranging property and casualty insurance, employee benefits and personal insurance, as well as providing risk management and related services.

The company serves clients through retail insurance operations, national insurance programs, wholesale brokerage and insurance-related services. It operates primarily in the United States and also serves clients in international markets.

Founded in 1939 in Daytona Beach, Florida, Brown & Brown has grown through organic expansion and acquisitions.

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