Bullish insiders at Brown & Brown, Inc. (NYSE:BRO) loaded up on US$1.4m of stock earlier this year
Multiple insiders secured a larger position in Brown & Brown, Inc. (NYSE:BRO) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Brown & Brown
Brown & Brown Insider Transactions Over The Last Year
The insider, Robert Lloyd, made the biggest insider sale in the last 12 months. That single transaction was for US$663k worth of shares at a price of US$65.48 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$55.06). So it may not shed much light on insider confidence at current levels. Robert Lloyd was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 24.87k shares for US$1.4m. But they sold 10.13k shares for US$663k. In total, Brown & Brown insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Brown & Brown Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Brown & Brown. Overall, two insiders shelled out US$464k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Brown & Brown Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Brown & Brown insiders own 17% of the company, worth about US$2.7b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Brown & Brown Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Brown & Brown. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Brown & Brown and we suggest you have a look.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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