Y Intercept Hong Kong Ltd Cuts Holdings in Brown & Brown, Inc. $BRO

Key Points

• Y Intercept Hong Kong Ltd cut its Brown & Brown stake by 49.5% in the first quarter, selling 55,448 shares and leaving it with 56,477 shares worth about $3.68 million.
• Brown & Brown reported better-than-expected quarterly results, with EPS of $1.39 versus estimates of $1.36 and revenue of $1.90 billion, up 35.4% year over year.
• The company also paid a quarterly dividend of $0.165 per share and has a low payout ratio of 21.22%, while analysts currently have a consensus rating of Hold with a target price of $78.19.

Y Intercept Hong Kong Ltd lowered its stake in Brown & Brown, Inc. (NYSE:BRO - Free Report) by 49.5% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 56,477 shares of the financial services provider's stock after selling 55,448 shares during the period. Y Intercept Hong Kong Ltd's holdings in Brown & Brown were worth $3,683,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also made changes to their positions in the company. Union Bancaire Privee UBP SA purchased a new position in Brown & Brown in the first quarter worth approximately $25,000. Basepoint Wealth LLC acquired a new stake in shares of Brown & Brown in the 4th quarter valued at $27,000. Darwin Wealth Management LLC acquired a new stake in shares of Brown & Brown in the 2nd quarter valued at $30,000. DV Equities LLC purchased a new stake in shares of Brown & Brown during the 4th quarter worth $33,000. Finally, Board of the Pension Protection Fund purchased a new stake in shares of Brown & Brown during the 4th quarter worth $40,000. Hedge funds and other institutional investors own 71.01% of the company's stock.

Insider Activity

In related news, Director H Palmer Proctor, Jr. purchased 2,000 shares of the business's stock in a transaction dated Tuesday, May 5th. The stock was acquired at an average price of $57.10 per share, for a total transaction of $114,200.00. Following the completion of the purchase, the director directly owned 47,621 shares of the company's stock, valued at $2,719,159.10. This trade represents a 4.38% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 13.13% of the company's stock.

Brown & Brown Stock Performance

NYSE:BRO traded up $1.27 during trading hours on Tuesday, reaching $69.70. 582,411 shares of the company's stock were exchanged, compared to its average volume of 3,299,919. The firm has a market capitalization of $23.63 billion, a price-to-earnings ratio of 22.43, a P/E/G ratio of 3.22 and a beta of 0.60. The company has a 50-day moving average of $59.72 and a 200 day moving average of $67.86. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.52. Brown & Brown, Inc. has a 1-year low of $53.81 and a 1-year high of $108.36.

Brown & Brown (NYSE:BRO - Get Free Report) last posted its quarterly earnings data on Monday, April 27th. The financial services provider reported $1.39 EPS for the quarter, beating analysts' consensus estimates of $1.36 by $0.03. Brown & Brown had a net margin of 17.94% and a return on equity of 12.94%. The company had revenue of $1.90 billion for the quarter, compared to analyst estimates of $1.89 billion. During the same period in the previous year, the business posted $1.29 earnings per share. Brown & Brown's quarterly revenue was up 35.4% on a year-over-year basis. Research analysts anticipate that Brown & Brown, Inc. will post 4.52 EPS for the current year.

Brown & Brown Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 20th. Shareholders of record on Monday, May 11th were given a dividend of $0.165 per share. This represents a $0.66 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Monday, May 11th. Brown & Brown's dividend payout ratio (DPR) is presently 21.22%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on BRO. Raymond James Financial restated an "outperform" rating on shares of Brown & Brown in a research note on Friday, June 26th. JPMorgan Chase & Co. decreased their target price on Brown & Brown from $91.00 to $85.00 and set a "neutral" rating for the company in a research note on Thursday, April 9th. Truist Financial dropped their price target on shares of Brown & Brown from $100.00 to $90.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Wells Fargo & Company cut their price objective on shares of Brown & Brown from $72.00 to $69.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 29th. Finally, Citizens Jmp started coverage on shares of Brown & Brown in a research report on Thursday, May 21st. They set a "market outperform" rating and a $70.00 price objective for the company. Five analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $78.19.

Brown & Brown Company 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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