Maryland Pension System Expands Stake in Brown & Brown After Earnings

Maryland State Retirement & Pension System sharply increased its position in Brown & Brown, Inc. during the third quarter, according to a recent Form 13F filing. The pension fund bought 1,132,054 additional shares, lifting its stake by 6,992.7% to a total of 1,148,243 shares. The position was valued at $69,928,000 at the end of the reporting period, representing approximately 0.35% of the company and ranking as the fund's 14th largest holding.

A series of other investment firms also adjusted their holdings in the insurance brokerage during the third quarter. Commonwealth Equity Services LLC grew its position by 190.7% to 387,291 shares, while Brighton Jones LLC expanded its investment by 135.3% to 33,280 shares. M Holdings Securities Inc. established a new position with 35,738 shares, and Ashton Thomas Private Wealth LLC raised its holdings by 623.2% to 24,351 shares. Institutional investors and hedge funds collectively hold 71.01% of the company's shares.

The institutional purchases follow Brown & Brown's quarterly financial results released on Monday, October 26th. The firm generated $1.70 billion in revenue, up 7.4% from the prior year's period, but below the consensus forecast of $1.76 billion. Earnings reached $1.07 per share, an increase from $1.05 per share earned in the same quarter last year, but one cent below the $1.08 per share projected by analysts. The company reported a net margin of 17.63% and a return on equity of 13.29%.

Alongside its quarterly results, Brown & Brown declared an increased quarterly dividend of $0.18 per share, up from its prior payout of $0.1650. The payout, scheduled for payment on Wednesday, November 11th, represents an annualized dividend of $0.72 and a yield of 1.0%, with a dividend payout ratio of 22.78%.

Wall Street analysts tracked by MarketBeat maintain a consensus rating of Hold on the stock, with an average price target of $75.47 based on one Strong Buy, six Buys, thirteen Holds, and one Sell rating. Sell-side analysts project full-year earnings of 4.44 per share for the company.