Vaughan Nelson Investment Management L.P. Reduces Holdings in Brown & Brown, Inc. $BRO

Key Points

• Vaughan Nelson Investment Management L.P. significantly decreased its stake in Brown & Brown, selling 31,800 shares to hold 29,135 shares, marking a reduction of 52.2% in the second quarter.
• Brown & Brown recently announced a quarterly dividend of $0.15 per share, reflecting an annualized yield of 0.6% and a payout ratio of 17.29%.
• Analysts have mixed opinions on the stock, with ratings varying from "buy" with target prices between $112.00 and $120.00, while the current consensus rating sits at "Hold."

Vaughan Nelson Investment Management L.P. reduced its holdings in shares of Brown & Brown, Inc. (NYSE:BRO - Free Report) by 52.2% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 29,135 shares of the financial services provider's stock after selling 31,800 shares during the quarter. Vaughan Nelson Investment Management L.P.'s holdings in Brown & Brown were worth $3,230,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. Bares Capital Management Inc. purchased a new position in Brown & Brown during the 1st quarter valued at about $26,000. Optimum Investment Advisors purchased a new position in Brown & Brown during the 1st quarter valued at about $31,000. SouthState Corp increased its holdings in Brown & Brown by 188.6% during the 1st quarter. SouthState Corp now owns 254 shares of the financial services provider's stock valued at $32,000 after acquiring an additional 166 shares in the last quarter. ST Germain D J Co. Inc. increased its holdings in Brown & Brown by 298.5% during 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 acquiring an additional 200 shares in the last quarter. Finally, Bruce G. Allen Investments LLC increased its holdings in Brown & Brown by 1,129.6% during the 2nd quarter. Bruce G. Allen Investments LLC now owns 332 shares of the financial services provider's stock valued at $37,000 after acquiring an additional 305 shares in the last quarter. 71.01% of the stock is currently owned by hedge funds and other institutional investors.

Brown & Brown Price Performance

Brown & Brown stock opened at $95.03 on Friday. Brown & Brown, Inc. has a 1 year low of $89.99 and a 1 year high of $125.68. The firm has a 50 day moving average price of $94.21 and a 200 day moving average price of $105.76. The company has a market cap of $31.35 billion, a price-to-earnings ratio of 27.39, a PEG ratio of 2.15 and a beta of 0.79. The company has a debt-to-equity ratio of 0.64, a quick ratio of 6.72 and a current ratio of 6.72.

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

Brown & Brown Dividend Announcement

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

Insider Buying and Selling

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

Analyst Upgrades and Downgrades

BRO has been the subject of several recent research reports. Citigroup initiated coverage on shares of Brown & Brown in a report on Wednesday, August 13th. They set a "buy" rating and a $112.00 target price for the company. Truist Financial set a $120.00 price target on shares of Brown & Brown in a report on Wednesday, July 30th. 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 report on Monday, August 4th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Brown & Brown in a report on Saturday, September 27th. Finally, Wall Street Zen upgraded shares of Brown & Brown from a "sell" rating to a "hold" rating in a report on Saturday, September 20th. Eight investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Brown & Brown presently has a consensus rating of "Hold" and a consensus target price of $112.08.

Brown & Brown 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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