Sterling Capital Management LLC Sells 105,248 Shares of Brown & Brown, Inc. $BRO

Key Points

• Sterling Capital Management slashed its Brown & Brown stake by 92.3% in the first quarter, selling 105,248 shares and leaving it with 8,787 shares valued at about $573,000.
• Brown & Brown reported solid quarterly results, posting adjusted EPS of $1.39 versus the $1.36 consensus and revenue of $1.90 billion, with revenue up 35.4% year over year.
• The company continues to reward shareholders and has mixed Wall Street sentiment, paying a quarterly dividend of $0.165 per share and carrying an average analyst rating of “Hold” with a target price of $78.25.

Sterling Capital Management LLC decreased its holdings in shares of Brown & Brown, Inc. (NYSE:BRO - Free Report) by 92.3% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,787 shares of the financial services provider's stock after selling 105,248 shares during the period. Sterling Capital Management LLC's holdings in Brown & Brown were worth $573,000 at the end of the most recent reporting period.

A number of other large investors have also bought and sold shares of BRO. Basepoint Wealth LLC acquired a new stake in shares of Brown & Brown in the 4th quarter valued at about $27,000. Darwin Wealth Management LLC purchased a new stake in Brown & Brown in the 2nd quarter valued at about $30,000. DV Equities LLC bought a new stake in shares of Brown & Brown during the 4th quarter worth $33,000. Board of the Pension Protection Fund purchased a new position in Brown & Brown in the fourth quarter valued at approximately $40,000. Finally, Maseco LLP purchased a new stake in Brown & Brown in the 4th quarter worth about $60,000. 71.01% of the stock is currently owned by institutional investors and hedge funds.

Brown & Brown Trading Up 3.7%

Shares of BRO opened at $69.87 on Friday. Brown & Brown, Inc. has a fifty-two week low of $53.81 and a fifty-two week high of $108.75. The firm has a market cap of $23.68 billion, a price-to-earnings ratio of 22.47, a PEG ratio of 3.10 and a beta of 0.60. The firm has a 50 day moving average price of $59.66 and a 200-day moving average price of $68.04. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.64 and a current ratio of 1.64.

Brown & Brown (NYSE:BRO - Get Free Report) last issued its earnings results on Monday, April 27th. The financial services provider reported $1.39 EPS for the quarter, topping analysts' consensus estimates of $1.36 by $0.03. The company had revenue of $1.90 billion for the quarter, compared to analysts' expectations of $1.89 billion. Brown & Brown had a net margin of 17.94% and a return on equity of 12.94%. The firm's revenue was up 35.4% compared to the same quarter last year. During the same quarter last year, the company earned $1.29 EPS. As a group, equities research analysts forecast that Brown & Brown, Inc. will post 4.52 earnings per share for the current year.

Brown & Brown Announces Dividend

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. This represents a $0.66 annualized dividend and a yield of 0.9%. The ex-dividend date was Monday, May 11th. Brown & Brown's dividend payout ratio (DPR) is presently 21.22%.

Insider Buying and Selling

In related news, Director H Palmer Proctor, Jr. purchased 2,000 shares of the firm's stock in a transaction on Tuesday, May 5th. The shares were acquired at an average cost of $57.10 per share, with a total value of $114,200.00. Following the purchase, the director directly 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 ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. 13.13% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on BRO. The Goldman Sachs Group upped their target price on shares of Brown & Brown from $62.00 to $70.00 and gave the stock a "neutral" rating in a report on Wednesday. Morgan Stanley lowered 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 research report on Thursday, May 21st. Keefe, Bruyette & Woods dropped their price objective on shares of Brown & Brown from $74.00 to $72.00 and set a "market perform" rating for the company in a report on Wednesday, April 29th. Citizens Jmp started coverage on Brown & Brown in a research note on Thursday, May 21st. They issued a "market outperform" rating and a $70.00 target price on the stock. Finally, Mizuho lowered their price target on Brown & Brown from $85.00 to $84.00 and set an "outperform" rating on the stock in a research report on Monday, April 13th. Five investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $78.25.

Brown & Brown 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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