Redwood Grove Capital LLC Invests $7.47 Million in Brown & Brown, Inc. $BRO

Redwood Grove Capital LLC acquired a new stake in Brown & Brown, Inc. (NYSE:BRO) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 116,400 shares of the financial services provider’s stock, valued at approximately $7,467,000. Brown & Brown comprises 1.9% of Redwood Grove Capital LLC’s holdings, making the stock its 21st biggest position.

A number of other institutional investors have also recently added to or reduced their stakes in BRO. Canada Pension Plan Investment Board acquired a new position in Brown & Brown in the 2nd quarter valued at approximately $4,567,000. Element Capital Management LLC bought a new stake in shares of Brown & Brown in the second quarter worth $5,023,000. Legal & General Group Plc bought a new stake in shares of Brown & Brown in the second quarter worth $69,091,000. The Manufacturers Life Insurance Company acquired a new stake in Brown & Brown in the second quarter valued at $9,608,000. Finally, Hyperion Capital Advisors LP acquired a new stake in Brown & Brown in the second quarter valued at $571,000. 71.01% of the stock is owned by institutional investors.

Brown & Brown Stock Down 1.7%

Brown & Brown stock opened at $73.35 on Wednesday. The company has a quick ratio of 2.11, a current ratio of 2.11 and a debt-to-equity ratio of 0.58. Brown & Brown, Inc. has a 12-month low of $53.81 and a 12-month high of $97.49. The firm’s fifty day moving average is $68.25 and its 200 day moving average is $65.76. The company has a market capitalization of $24.54 billion, a PE ratio of 23.14, a PEG ratio of 3.72 and a beta of 0.59.

Brown & Brown (NYSE:BRO) last issued its earnings results on Monday, July 27th. The financial services provider reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.08 by ($0.01). Brown & Brown had a return on equity of 13.17% and a net margin of 17.75%.The company had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.71 billion. During the same period in the prior year, the company earned $1.03 earnings per share. The firm’s revenue was up 30.4% compared to the same quarter last year. As a group, sell-side analysts predict that Brown & Brown, Inc. will post 4.5 EPS for the current fiscal year.

Brown & Brown Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Wednesday, August 12th were paid a $0.165 dividend. The ex-dividend date was Wednesday, August 12th. This represents a $0.66 annualized dividend and a dividend yield of 0.9%. Brown & Brown’s dividend payout ratio (DPR) is currently 20.82%.

Analyst Upgrades and Downgrades

Several research analysts have commented on BRO shares. JPMorgan Chase & Co. upped their price target on Brown & Brown from $78.00 to $80.00 and gave the company a “neutral” rating in a research report on Monday, August 3rd. Wells Fargo & Company cut their price objective on Brown & Brown from $69.00 to $68.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 9th. Mizuho upped their target price on Brown & Brown from $81.00 to $86.00 and gave the company an “outperform” rating in a report on Wednesday, July 29th. Truist Financial set a $90.00 target price on shares of Brown & Brown in a research report on Wednesday, July 29th. Finally, The Goldman Sachs Group raised their price target on shares of Brown & Brown from $62.00 to $70.00 and gave the stock a “neutral” rating in a report on Wednesday, July 1st. Four investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $76.80.

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.