Otter Creek Advisors LLC Decreases Position in Brown & Brown, Inc. $BRO

Key Points

• Otter Creek Advisors LLC reduced its position in Brown & Brown, Inc. by 82.6% in the second quarter, resulting in ownership of 2,671 shares valued at approximately $296,000.
• Brown & Brown's recent quarterly report showed an EPS of $1.03, surpassing expectations by $0.04, and revenue increased by 9.1% year-over-year.
• Insider activity included notable purchases by Directors Bronislaw Masojada and Paul J. Krump, increasing their respective holdings by 25% and 100.11%.

Otter Creek Advisors LLC lessened its holdings in Brown & Brown, Inc. (NYSE:BRO - Free Report) by 82.6% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 2,671 shares of the financial services provider's stock after selling 12,716 shares during the period. Otter Creek Advisors LLC's holdings in Brown & Brown were worth $296,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Bares Capital Management Inc. acquired a new stake in shares of Brown & Brown in the 1st quarter valued at $26,000. ST Germain D J Co. Inc. raised its holdings in shares of Brown & Brown by 298.5% in the 2nd quarter. ST Germain D J Co. Inc. now owns 267 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 200 shares in the last quarter. Optimum Investment Advisors acquired a new stake in shares of Brown & Brown in the 1st quarter valued at $31,000. SouthState Corp raised its holdings in shares of Brown & Brown by 188.6% in the 1st quarter. SouthState Corp now owns 254 shares of the financial services provider's stock valued at $32,000 after purchasing an additional 166 shares in the last quarter. Finally, Bruce G. Allen Investments LLC raised its holdings in shares of Brown & Brown by 1,129.6% in the 2nd quarter. Bruce G. Allen Investments LLC now owns 332 shares of the financial services provider's stock valued at $37,000 after purchasing an additional 305 shares in the last quarter. Hedge funds and other institutional investors own 71.01% of the company's stock.

Insider Activity

In other Brown & Brown news, Director Bronislaw Edmund Masojada bought 1,000 shares of the firm's stock in a transaction dated Wednesday, August 6th. The stock was acquired at an average price of $91.44 per share, for a total transaction of $91,440.00. Following the completion of the purchase, the director owned 5,000 shares of the company's stock, valued at approximately $457,200. This represents a 25.00% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Paul J. Krump bought 2,678 shares of the firm's stock in a transaction dated Friday, August 8th. The shares were acquired at an average price of $93.31 per share, with a total value of $249,884.18. Following the purchase, the director directly owned 5,353 shares of the company's stock, valued at approximately $499,488.43. This trade represents a 100.11% increase in their position. The disclosure for this purchase can be found here. 17.02% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

BRO has been the topic of a number of analyst reports. Wall Street Zen upgraded shares of Brown & Brown from a "sell" rating to a "hold" rating in a report on Saturday, September 20th. Truist Financial set a $120.00 price objective on shares of Brown & Brown in a report on Wednesday, July 30th. Keefe, Bruyette & Woods reduced their price objective on shares of Brown & Brown from $104.00 to $87.00 and set an "underperform" rating on the stock in a report on Thursday, July 31st. Raymond James Financial reiterated an "outperform" rating and set a $120.00 price target (down from $125.00) on shares of Brown & Brown in a research note on Monday, August 4th. Finally, Wells Fargo & Company cut their price target on shares of Brown & Brown from $101.00 to $98.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 8th. Seven analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $109.92.

Brown & Brown Price Performance

Shares of NYSE:BRO opened at $87.79 on Friday. The company's fifty day moving average price is $94.26 and its 200 day moving average price is $103.92. Brown & Brown, Inc. has a 12 month low of $87.26 and a 12 month high of $125.68. 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 has a market capitalization of $28.96 billion, a P/E ratio of 25.30, a P/E/G ratio of 1.97 and a beta of 0.79.

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

Brown & Brown Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 20th. Stockholders of record on Wednesday, August 13th were paid a dividend of $0.15 per share. The ex-dividend date was Wednesday, August 13th. This represents a $0.60 annualized dividend and a dividend yield of 0.7%. Brown & Brown's dividend payout ratio is 17.29%.

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.

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