Insider Buying: Brown & Brown (NYSE:BRO) Director Acquires 2,000 Shares of Stock

Key Points

• Director H. Palmer Proctor Jr. bought 2,000 shares at an average price of $57.10 on May 5, spending $114,200 and increasing his stake to 47,621 shares (a 4.38% rise).
• Q1 results beat expectations: Brown & Brown reported EPS of $1.39 vs. $1.36 expected and revenue of $1.90 billion, up 35.4% year-over-year.
• The company announced a quarterly dividend of $0.165 per share (annualized $0.66, yield ~1.2%), with an ex-dividend date of May 11 and a payment date of May 20.

Brown & Brown, Inc. (NYSE:BRO - Get Free Report) Director H Palmer Proctor, Jr. bought 2,000 shares of the firm's stock in a transaction dated Tuesday, May 5th. The shares were bought at an average price of $57.10 per share, with a total value of $114,200.00. Following the completion of the transaction, the director directly owned 47,621 shares in the company, valued at approximately $2,719,159.10. This trade represents a 4.38% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

Brown & Brown Trading Down 1.5%

Shares of BRO stock traded down $0.87 on Wednesday, reaching $56.64. The company had a trading volume of 3,257,165 shares, compared to its average volume of 3,338,988. The company has a 50-day moving average of $67.35 and a 200-day moving average of $74.65. Brown & Brown, Inc. has a 12 month low of $56.54 and a 12 month high of $113.83. The stock has a market cap of $19.20 billion, a PE ratio of 18.21, a PEG ratio of 2.66 and a beta of 0.66. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.52.

Brown & Brown (NYSE:BRO - Get Free Report) last issued its quarterly earnings data on Monday, April 27th. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.36 by $0.03. The firm had revenue of $1.90 billion during 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 business's revenue for the quarter was up 35.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.29 earnings per share. On average, equities analysts forecast that Brown & Brown, Inc. will post 4.51 earnings per share for the current year.

Brown & Brown Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 20th. Stockholders of record on Monday, May 11th will be issued a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Monday, May 11th. Brown & Brown's payout ratio is 21.22%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of BRO. Union Bancaire Privee UBP SA bought a new stake in shares of Brown & Brown during the 1st quarter worth approximately $25,000. Cornerstone Planning Group LLC increased its holdings in Brown & Brown by 423.1% during the third quarter. Cornerstone Planning Group LLC now owns 272 shares of the financial services provider's stock worth $26,000 after buying an additional 220 shares during the last quarter. Basepoint Wealth LLC bought a new stake in Brown & Brown during the fourth quarter worth $27,000. Darwin Wealth Management LLC bought a new stake in Brown & Brown during the second quarter worth $30,000. Finally, DV Equities LLC acquired a new stake in Brown & Brown in the fourth quarter valued at $33,000. 71.01% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms recently issued reports on BRO. JPMorgan Chase & Co. decreased their price objective on Brown & Brown from $91.00 to $85.00 and set a "neutral" rating for the company in a report on Thursday, April 9th. The Goldman Sachs Group reduced their price target on Brown & Brown from $82.00 to $73.00 and set a "neutral" rating for the company in a research report on Wednesday, April 8th. UBS Group reiterated a "neutral" rating and issued a $81.00 price objective (down from $90.00) on shares of Brown & Brown in a report on Thursday, January 29th. Keefe, Bruyette & Woods cut their price objective on shares of Brown & Brown from $74.00 to $72.00 and set a "market perform" rating on the stock in a research report on Wednesday, April 29th. Finally, Truist Financial reduced their target price on shares of Brown & Brown from $100.00 to $90.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Four research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $80.73.

About Brown & Brown

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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