Hugh Brown, a director at Brown & Brown (BRO), recently added 1,311 shares. The buy increased his stake by nearly 3 percent, and came to a total price of just under $79,000.
That buy came the same day that two other directors picked up shares as well, with one director picking up 10,000 shares at a cost of $589,000, and the other buying nearly 1,700 shares for just under $100,000.
These buys constitute the largest insider activity of the past three years. Otherwise, there’s been a more even mix of company insiders buying and selling shares. All told, company insiders own 16.7 percent of shares.
The insurance brokerage company has seen shares rise about 9 percent in the past year, beating out the now-flat performance of the S&P 500. Revenue and earnings are growing at low-double-digit rates.
Action to take: The insurance industry tends to hold steady in any economic environment. And the company is a dividend growth stock, albeit with a low starting yield of 0.7 percent. So it’s likely shares will continue to steadily grow over time.
For traders, the short-term movement of shares is likely dependent on the overall stock market’s return now. However, the September $50 calls, last going with a spread near $2.50, could get cheaper in the coming weeks, only to offer a solid return before expiration on a rebound in the stock and overall market. Traders could also look into acquiring contracts on a down day, and selling on the next rally.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.