United Services Automobile Association Purchases New Position in Brown & Brown, Inc. $BRO

Key Points

• United Services Automobile Association purchased 5,703 shares of Brown & Brown, Inc., valued at approximately $701,000, signaling confidence in the financial services provider.
• Brown & Brown reported a 9.1% increase in quarterly revenue year-over-year, totaling $1.29 billion, and beat EPS estimates by $0.04.
• The company recently announced a quarterly dividend of $0.15 per share, representing an annual yield of 0.6% and a payout ratio of 17.29%.

United Services Automobile Association purchased a new stake in shares of Brown & Brown, Inc. (NYSE:BRO - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 5,703 shares of the financial services provider's stock, valued at approximately $701,000.

A number of other institutional investors and hedge funds also recently modified their holdings of BRO. Parnassus Investments LLC purchased a new stake in shares of Brown & Brown during the first quarter valued at approximately $899,139,000. GAMMA Investing LLC increased 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 buying an additional 1,104,852 shares during the last quarter. Handelsbanken Fonder AB increased its position in Brown & Brown by 172.5% in the first quarter. Handelsbanken Fonder AB now owns 1,314,434 shares of the financial services provider's stock worth $163,516,000 after buying an additional 832,100 shares during the last quarter. Nuveen LLC purchased a new stake in Brown & Brown in the first quarter worth $72,895,000. Finally, Vanguard Group Inc. increased its position in Brown & Brown by 1.9% in the first quarter. Vanguard Group Inc. now owns 30,501,119 shares of the financial services provider's stock worth $3,794,339,000 after buying an additional 560,980 shares during the last quarter. 71.01% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Wall Street Zen downgraded Brown & Brown from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. BMO Capital Markets decreased their target price on Brown & Brown from $122.00 to $106.00 and set an "outperform" rating for the company in a research report on Wednesday, July 30th. Citigroup assumed coverage on Brown & Brown in a research report on Wednesday, August 13th. They issued a "buy" rating and a $112.00 target price for the company. Truist Financial set a $120.00 target price on Brown & Brown in a research report on Wednesday, July 30th. Finally, Bank of America raised Brown & Brown from a "neutral" rating to a "buy" rating and raised their price target for the stock from $126.00 to $130.00 in a report on Wednesday, July 30th. Seven analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $112.64.

Brown & Brown Price Performance

BRO stock traded down $1.11 during mid-day trading on Monday, hitting $92.43. 405,192 shares of the stock were exchanged, compared to its average volume of 2,535,072. 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 business has a fifty day moving average price of $98.00 and a 200 day moving average price of $108.41. Brown & Brown, Inc. has a 12 month low of $90.38 and a 12 month high of $125.68. The stock has a market capitalization of $30.49 billion, a price-to-earnings ratio of 26.62, a PEG ratio of 2.13 and a beta of 0.81.

Brown & Brown (NYSE:BRO - Get Free Report) last released its quarterly earnings data 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 the consensus estimate 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 earnings per share. On average, sell-side analysts anticipate that Brown & Brown, Inc. will post 4.18 EPS for the current year.

Brown & Brown Dividend Announcement

The business also recently disclosed 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 annualized dividend and a dividend yield of 0.6%. Brown & Brown's payout ratio is currently 17.29%.

Insider Activity

In related news, Director Bronislaw Edmund Masojada acquired 1,000 shares of the firm's stock in a transaction dated Wednesday, August 6th. The shares were purchased at an average price of $91.44 per share, for a total transaction of $91,440.00. Following the completion of the acquisition, the director owned 5,000 shares in the company, valued at approximately $457,200. This represents a 25.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, Director Paul J. Krump acquired 2,678 shares of the firm's stock in a transaction dated Friday, August 8th. The stock was bought 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 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 insiders.

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.