Jacobs Levy Equity Management Inc. Acquires New Stake in Brown & Brown, Inc. $BRO

Key Points

• Jacobs Levy Equity Management Inc. invested approximately $15.83 million in Brown & Brown, Inc., purchasing 127,264 shares during the 1st quarter, as disclosed in a recent SEC filing.
• Brown & Brown announced a quarterly dividend of $0.15 per share, with an annualized yield of 0.6% and a payout ratio of 17.29%.
• Several analysts have adjusted their ratings and price targets for Brown & Brown, with a current consensus rating of "Hold" and an average price target of $112.64.

Jacobs Levy Equity Management Inc. purchased a new stake in shares of Brown & Brown, Inc. (NYSE:BRO - Free Report) during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 127,264 shares of the financial services provider's stock, valued at approximately $15,832,000.

A number of other institutional investors have also recently made changes to their positions in BRO. Parnassus Investments LLC bought a new position in Brown & Brown during the first quarter valued at approximately $899,139,000. GAMMA Investing LLC raised its position in Brown & Brown by 13,974.9% in the first quarter. GAMMA Investing LLC now owns 1,112,758 shares of the financial services provider's stock worth $138,427,000 after acquiring an additional 1,104,852 shares during the period. Handelsbanken Fonder AB raised its position in shares of Brown & Brown by 172.5% during the 1st quarter. Handelsbanken Fonder AB now owns 1,314,434 shares of the financial services provider's stock valued at $163,516,000 after purchasing an additional 832,100 shares during the period. Nuveen LLC bought a new stake in shares of Brown & Brown during the 1st quarter valued at $72,895,000. Finally, Vanguard Group Inc. raised its position in shares of Brown & Brown by 1.9% during the 1st quarter. Vanguard Group Inc. now owns 30,501,119 shares of the financial services provider's stock valued at $3,794,339,000 after purchasing an additional 560,980 shares during the period. Hedge funds and other institutional investors own 71.01% of the company's stock.

Insider Buying and Selling

In related news, Director Paul J. Krump bought 2,678 shares of the company's stock in a transaction dated Friday, August 8th. The stock was purchased at an average price of $93.31 per share, for a total transaction of $249,884.18. Following the acquisition, the director owned 5,353 shares in the company, valued at $499,488.43. This trade represents a 100.11% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Bronislaw Edmund Masojada acquired 1,000 shares of the company's stock in a transaction that occurred on Wednesday, August 6th. The shares were acquired at an average price of $91.44 per share, with a total value of $91,440.00. Following the acquisition, the director owned 5,000 shares in the company, valued at $457,200. This trade represents a 25.00% increase in their ownership of the stock. The disclosure for this purchase can be found here. 17.02% of the stock is currently owned by insiders.

Brown & Brown Trading Up 1.5%

Shares of Brown & Brown stock traded up $1.42 on Thursday, reaching $93.92. The company had a trading volume of 1,475,707 shares, compared to its average volume of 2,543,947. The firm has a market cap of $30.98 billion, a price-to-earnings ratio of 27.09, a P/E/G ratio of 2.13 and a beta of 0.81. The company has a debt-to-equity ratio of 0.64, a current ratio of 6.72 and a quick ratio of 6.72. The firm's 50-day moving average price is $98.56 and its two-hundred day moving average price is $108.78. Brown & Brown, Inc. has a 1 year low of $90.38 and a 1 year high of $125.68.

Brown & Brown (NYSE:BRO - Get Free Report) last announced its earnings results on Monday, July 28th. The financial services provider reported $1.03 EPS for the quarter, topping analysts' consensus estimates of $0.99 by $0.04. The firm had revenue of $1.29 billion during the quarter, compared to analysts' expectations of $1.28 billion. Brown & Brown had a return on equity of 15.10% and a net margin of 19.89%.The company's quarterly revenue was up 9.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.93 EPS. As a group, research analysts predict that Brown & Brown, Inc. will post 4.18 earnings per share for the current fiscal year.

Brown & Brown Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 20th. Stockholders of record on Wednesday, August 13th were issued a $0.15 dividend. The ex-dividend date was Wednesday, August 13th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.6%. Brown & Brown's payout ratio is 17.29%.

Analysts Set New Price Targets

Several analysts have recently commented on BRO shares. Argus restated a "hold" rating on shares of Brown & Brown in a research report on Thursday, July 31st. Bank of America raised shares of Brown & Brown from a "neutral" rating to a "buy" rating and raised their target price for the company from $126.00 to $130.00 in a research note on Wednesday, July 30th. Truist Financial set a $120.00 target price on shares of Brown & Brown in a research note on Wednesday, July 30th. Barclays cut their target price on shares of Brown & Brown from $111.00 to $108.00 and set an "equal weight" rating for the company in a research note on Tuesday, July 29th. Finally, Citigroup assumed coverage on shares of Brown & Brown in a research note on Wednesday, August 13th. They set a "buy" rating and a $112.00 target price for the company. Seven equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $112.64.

Brown & Brown Company Profile

Brown & Brown, Inc is an insurance agency, wholesale brokerage, insurance program and service organization. It engages in the provision of insurance brokerage services and casualty insurance underwriting services. It operates through the following segments: Retail, National Programs, Wholesale Brokerage, and Services.