In a recent filing with the Securities and Exchange Commission, J. Hyatt Brown, the Chairman of Brown & Brown, Inc. (NYSE:BRO), reported a series of stock sales totaling approximately $20.2 million. The transactions, which took place between March 12 and March 13, involved shares of the company's common stock, with prices ranging from $85.04 to $86.05.
On March 12, Brown sold a total of 144,323 shares in three separate transactions. Prices for these sales were reported at $85.91, $85.90, and $86.05 per share. The following day, Brown continued with two additional sales, offloading 50,000 shares at $85.04 and 41,677 shares at $85.25 each.
These sales are part of Brown's tax planning strategy, as indicated in the footnotes of the filing. The shares sold were held by Ormond Riverside, Limited Partnership, for which Swakopmund, Inc. acts as the general partner with voting and investment power. Swakopmund, Inc. is entirely owned by the Swakopmund Trust of 2009, a revocable trust created by Brown, who is also the sole trustee and retains all voting and investment powers for the shares of Swakopmund, Inc.
Following these transactions, the reporting documents show that Brown still retains a substantial interest in the company, with indirect ownership stakes through different entities, including a Charitable Lead Annuity Trust and an IRA.
Brown & Brown, Inc. is a leading insurance brokerage firm, providing risk management solutions to individuals and businesses. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol NYSE:BRO.
InvestingPro Insights
Amidst the recent stock sales by J. Hyatt Brown, the Chairman of Brown & Brown, Inc. (NYSE:BRO), investors may find it beneficial to consider the company's financial health and market performance. Brown & Brown, Inc. has demonstrated a notable financial track record, marked by a consistent increase in dividends. According to InvestingPro Tips, the company has raised its dividend for 31 consecutive years and has maintained dividend payments for 39 consecutive years, signifying a strong commitment to returning value to shareholders.
Investors may also note that the company's shares are trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock could be undervalued given its earnings potential. Currently, Brown & Brown, Inc. has a market capitalization of $24.26 billion, with a P/E ratio of 27.56 and a higher adjusted P/E ratio for the last twelve months as of Q4 2023, sitting at 31.3. Additionally, the company's Price / Book ratio for the same period is 4.35, which may be of interest to those evaluating the company's market valuation against its book value.
The firm's revenue growth is also a positive indicator, with a 17.88% increase in the last twelve months as of Q4 2023. This growth is complemented by a strong operating income margin of 27.95%, reflecting efficient management and profitability. For those who consider historical performance, Brown & Brown, Inc. has provided a high return over the last year, with a 56.45% one-year price total return as of the date referenced in the provided data.
For investors seeking additional insights and a deeper analysis, there are even more InvestingPro Tips available, covering various aspects of the company's performance and projections. To explore these further, visit https://www.investing.com/pro/BRO and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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