Potential Brown & Brown, Inc. (NYSE:BRO) shareholders may wish to note that the Lead Independent Director, H. Proctor, recently bought US$110k worth of stock, paying US$54.98 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.6%.
Brown & Brown Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board, J. Brown, sold US$44m worth of shares at a price of US$51.66 per share. That means that even when the share price was below the current price of US$54.40, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.1% of J. Brown's holding.
In the last twelve months insiders purchased 12.00k shares for US$544k. But insiders sold 859.63k shares worth US$44m. In total, Brown & Brown insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Brown & Brown
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Brown & Brown insiders own 17% of the company, currently worth about US$2.6b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Brown & Brown Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Brown & Brown, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Brown & Brown makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Brown & Brown.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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