One Brown & Brown Insider Has Reduced Their Stake

From what we can see, insiders were net sellers in Brown & Brown, Inc.'s (NYSE:BRO ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Brown & Brown Insider Transactions Over The Last Year

The Chairman of the Board, J. Brown, made the biggest insider sale in the last 12 months. That single transaction was for US$47m worth of shares at a price of US$112 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$93.54). So it may not shed much light on insider confidence at current levels. J. Brown was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 3.68k shares for US$341k. But they sold 418.93k shares for US$47m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Brown & Brown

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Insiders At Brown & Brown Have Bought Stock Recently

It's good to see that Brown & Brown insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$341k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Brown & Brown insiders own 14% of the company, worth about US$4.4b. 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 recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. While it's good to be aware of 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. In terms of investment risks, we've identified 1 warning sign with Brown & Brown and understanding this should be part of your investment process.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.