Hsbc Holdings PLC Increases Holdings in Brown & Brown, Inc. $BRO

Key Points

• HSBC Holdings PLC increased its Brown & Brown stake by 3.7% in the fourth quarter, adding 21,643 shares and bringing its total holding to 610,737 shares valued at about $48.7 million.
• Brown & Brown recently beat quarterly earnings expectations, reporting EPS of $1.39 versus $1.36 expected and revenue of $1.90 billion, up 35.4% from a year earlier.
• Analysts remain cautious overall: the stock carries a Hold consensus rating, with an average price target of $78.25, while the shares were trading around $69.87 in the article.

Hsbc Holdings PLC boosted its stake in shares of Brown & Brown, Inc. (NYSE:BRO - Free Report) by 3.7% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund owned 610,737 shares of the financial services provider's stock after buying an additional 21,643 shares during the period. Hsbc Holdings PLC owned 0.18% of Brown & Brown worth $48,744,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of BRO. Basepoint Wealth LLC acquired a new position in shares of Brown & Brown during the 4th quarter valued at about $27,000. Darwin Wealth Management LLC acquired a new stake in Brown & Brown during the second quarter worth about $30,000. DV Equities LLC purchased a new position in Brown & Brown during the fourth quarter worth about $33,000. Board of the Pension Protection Fund purchased a new position in Brown & Brown during the fourth quarter worth about $40,000. Finally, Maseco LLP acquired a new position in Brown & Brown in the 4th quarter valued at about $60,000. 71.01% of the stock is owned by institutional investors and hedge funds.

Brown & Brown Stock Down 0.2%

NYSE:BRO opened at $69.87 on Monday. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.52. The stock's fifty day moving average is $59.70 and its two-hundred day moving average is $67.95. Brown & Brown, Inc. has a 52 week low of $53.81 and a 52 week high of $108.75. The stock has a market capitalization of $23.68 billion, a price-to-earnings ratio of 22.47, a price-to-earnings-growth ratio of 3.22 and a beta of 0.60.

Brown & Brown (NYSE:BRO - Get Free Report) last posted 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. Brown & Brown had a return on equity of 12.94% and a net margin of 17.94%.The firm had revenue of $1.90 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same quarter in the previous year, the business earned $1.29 EPS. The company's quarterly revenue was up 35.4% compared to the same quarter last year. Research analysts anticipate that Brown & Brown, Inc. will post 4.52 EPS for the current year.

Brown & Brown Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 20th. Stockholders of record on Monday, May 11th were paid a $0.165 dividend. The ex-dividend date of this dividend was Monday, May 11th. This represents a $0.66 annualized dividend and a dividend yield of 0.9%. Brown & Brown's dividend payout ratio (DPR) is presently 21.22%.

Insider Activity at Brown & Brown

In other Brown & Brown news, Director H Palmer Proctor, Jr. acquired 2,000 shares of the stock in a transaction dated Tuesday, May 5th. The stock was acquired at an average price of $57.10 per share, with a total value of $114,200.00. Following the completion of the purchase, the director owned 47,621 shares in the company, valued at $2,719,159.10. This trade represents a 4.38% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 13.13% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on BRO shares. Citizens Jmp began coverage on shares of Brown & Brown in a research note on Thursday, May 21st. They issued a "market outperform" rating and a $70.00 price target for the company. UBS Group decreased their price objective on Brown & Brown from $81.00 to $65.00 and set a "neutral" rating on the stock in a report on Tuesday, June 9th. Wells Fargo & Company lowered their price objective on Brown & Brown from $72.00 to $69.00 and set an "equal weight" rating for the company in a research report on Wednesday, April 29th. Barclays cut their target price on Brown & Brown from $80.00 to $72.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 8th. Finally, Royal Bank Of Canada reduced their target price on Brown & Brown from $76.00 to $72.00 and set a "sector perform" rating on the stock in a research report on Wednesday, April 29th. Five analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $78.25.

Brown & Brown Company Profile

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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