Gator Capital Management LLC Invests $2.64 Million in Brown & Brown, Inc. $BRO

Key Points

• Gator Capital Management initiated a new position in Brown & Brown, buying 33,171 shares worth about $2.64 million in the fourth quarter.
• Brown & Brown reported better-than-expected quarterly results, with EPS of $1.39 versus the $1.36 estimate and revenue of $1.90 billion, up 35.4% year over year.
• Analysts have turned more cautious, with several cutting price targets; the stock currently has a consensus Hold rating and a median price target of $78.44.

Gator Capital Management LLC purchased a new position in shares of Brown & Brown, Inc. (NYSE:BRO - Free Report) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 33,171 shares of the financial services provider's stock, valued at approximately $2,644,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Basepoint Wealth LLC purchased a new stake in Brown & Brown during the fourth quarter worth about $27,000. Darwin Wealth Management LLC purchased a new stake in Brown & Brown during the second quarter worth about $30,000. Board of the Pension Protection Fund purchased a new stake in Brown & Brown during the fourth quarter worth about $40,000. Maseco LLP purchased a new stake in Brown & Brown during the fourth quarter worth about $60,000. Finally, eCIO Inc. purchased a new stake in Brown & Brown during the fourth quarter worth about $67,000. 71.01% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, Director H Palmer Proctor, Jr. purchased 2,000 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The stock was purchased at an average price of $57.10 per share, with a total value of $114,200.00. Following the completion of the transaction, the director owned 47,621 shares of the company's stock, valued at approximately $2,719,159.10. This trade represents a 4.38% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 13.13% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently commented on the stock. Morgan Stanley decreased their price objective on shares of Brown & Brown from $65.00 to $60.00 and set an "equal weight" rating on the stock in a report on Thursday, May 21st. Royal Bank Of Canada decreased their price objective on shares of Brown & Brown from $76.00 to $72.00 and set a "sector perform" rating on the stock in a report on Wednesday, April 29th. Wells Fargo & Company decreased their price objective on shares of Brown & Brown from $72.00 to $69.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 29th. Truist Financial decreased their price objective on shares of Brown & Brown from $100.00 to $90.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Finally, Keefe, Bruyette & Woods reduced their price target on shares of Brown & Brown from $74.00 to $72.00 and set a "market perform" rating on the stock in a report on Wednesday, April 29th. Five analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $78.44.

Brown & Brown Stock Performance

Shares of BRO opened at $59.96 on Friday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.64 and a current ratio of 1.64. The company has a market capitalization of $20.32 billion, a price-to-earnings ratio of 19.28, a PEG ratio of 2.76 and a beta of 0.63. The company's 50 day simple moving average is $61.11 and its 200 day simple moving average is $69.85. Brown & Brown, Inc. has a 1 year low of $53.81 and a 1 year high of $111.10.

Brown & Brown (NYSE:BRO - Get Free Report) last announced its quarterly earnings data on Monday, April 27th. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.03. The business had revenue of $1.90 billion for the quarter, compared to the consensus estimate of $1.89 billion. Brown & Brown had a net margin of 17.94% and a return on equity of 12.94%. The company's quarterly revenue was up 35.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.29 earnings per share. On average, sell-side analysts predict that Brown & Brown, Inc. will post 4.51 EPS for the current year.

Brown & Brown Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 20th. Investors of record on Monday, May 11th were given a dividend of $0.165 per share. The ex-dividend date of this dividend was Monday, May 11th. This represents a $0.66 annualized dividend and a yield of 1.1%. Brown & Brown's dividend payout ratio is 21.22%.

About Brown & Brown

Brown & Brown, Inc NYSE: BRO is a professional insurance brokerage and risk advisory firm that provides a broad range of property and casualty, employee benefits, personal risk, and specialty insurance products. The company works with commercial, public sector and individual clients to design and place insurance programs, manage claims and loss control, and deliver risk management consulting. Its services also include wholesale brokerage, program administration and other specialty distribution solutions that connect carriers and intermediaries to niche markets.

Brown & Brown operates through a decentralized model of operating units and subsidiaries, enabling local client service with the scale to access national and specialty markets.

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