DAYTONA BEACH, FL—J. Hyatt Brown, Chairman of Brown & Brown, Inc. (NYSE:BRO), has sold a significant portion of his holdings in the company. According to a recent SEC filing, Brown sold a total of 418,928 shares of common stock over two days. The sales, executed on November 25 and November 26, were carried out at an average price of $111.75 per share, amounting to a total transaction value of approximately $46.8 million.
Following these transactions, Brown retains ownership of 36,000,000 shares through a limited partnership, as well as 2,054,950 shares held in a charitable lead annuity trust. The transactions were part of Brown's tax planning strategy, as noted in the filing.
In other recent news, Brown & Brown Inc. reported a solid Q3 performance, with an 11% year-over-year revenue increase to nearly $1.2 billion and a significant 9.5% organic growth. Adjusted earnings per share saw a rise of 12.3% to $0.91, and the EBITDAC margin improved by 30 basis points to 34.9%. The company also completed four acquisitions in Q3, contributing approximately $8 million in annual revenues.
Brown & Brown Inc. has shown a strong commitment to recovery efforts in communities affected by Hurricanes Helene and Milton, and anticipates significant revenue from flood claims processing related to these hurricanes in Q4 2023 and H1 2025. The company's M&A pipeline remains strong, with interest from private equity and potential international opportunities.
According to recent developments, the company forecasts a moderate change in insurance market rates into early 2025 and anticipates a decrease in CAT property rates due to the impact of recent hurricanes. Furthermore, a projected EBITDAC margin increase of at least 100 basis points for 2024 is expected. Despite facing challenges with higher loss ratios in auto insurance and caution around economic conditions due to the upcoming Presidential Election, Brown & Brown Inc. remains confident in its growth prospects and strategic direction.
InvestingPro Insights
While J. Hyatt Brown's recent stock sale might raise eyebrows, Brown & Brown's financial metrics and market performance paint a picture of a robust company. According to InvestingPro data, Brown & Brown boasts a market capitalization of $32.52 billion, reflecting its significant presence in the insurance brokerage industry.
The company's financial health is underscored by its revenue growth of 11.36% over the last twelve months, reaching $4.56 billion. This growth trajectory is complemented by a strong EBITDA margin of 33.52%, indicating efficient operations and solid profitability.
InvestingPro Tips highlight Brown & Brown's impressive dividend history, having raised its dividend for 32 consecutive years. This commitment to shareholder returns aligns with the company's long-term financial stability and growth. Additionally, the stock is trading near its 52-week high, with a remarkable 50.82% total return over the past year, suggesting strong investor confidence despite the chairman's recent stock sale.
The company's P/E ratio of 30.69 might seem high at first glance, but when considered alongside its PEG ratio of 0.78, it suggests that Brown & Brown's stock may still be undervalued relative to its growth prospects. This valuation perspective is further supported by an InvestingPro Tip indicating that the company is trading at a low P/E ratio relative to near-term earnings growth.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Brown & Brown, providing a deeper dive into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.