Driehaus Capital Management LLC, an institutional investor, recently made a significant move by reducing its holdings in BRP Group, Inc. (NASDAQ:BRP) by 27.6% during the last quarter. According to its filing with the Securities & Exchange Commission, Driehaus Capital Management LLC now owns 453,784 shares of the company’s stock after selling 173,049 shares during the period. This equates to approximately 0.39% of BRP Group’s total worth amounting to $11,408,000.
This news comes on the heels of BRP Group reporting its quarterly earnings data on May 9th of this year. The company reported a strong earnings per share (EPS) of $0.32 for the quarter, which surpassed analysts’ estimates by $0.02. Additionally, they racked up revenue of $330.45 million compared to expectations of $312.19 million from industry analysts.
Despite having a negative net margin of 7.37%, BRP Group still had a positive return on equity coming in at 5.09%. Sell-side analysts predict that the company will post an EPS of 0.76 for this year.
What exactly does BRP Group do? They are in the business of marketing and selling insurance products and services within the United States through four different segments: Middle Market, Specialty, MainStreet, and Medicare.
The Middle Market segment is their largest and offers commercial risk management solutions for businesses and high-net-worth individuals as well as families. Meanwhile, their Specialty segment provides products that cater more towards niche markets including growth industries such as aviation and cyber security.
Their MainStreet segment focuses on providing personal assistance insurance solutions to small businesses like auto dealerships or fire service organizations whereas their Medicare plans offer coverage options to seniors.
In light of recent changes within Driehaus Capital Management LLC’s holdings and the strong earnings report from BRP Group, it remains to be seen what the future holds for this insurance marketing giant. Investors will undoubtedly have their eyes peeled on developments in both areas as we move further into 2023.
[bs_slider_forecast ticker=”BRP”]
Institutional Investors Show Confidence in BRP Group Despite Mixed Reviews from Research Firms
BRP Group, Inc is a renowned name in the insurance sector of the United States that offers its clients with a wide range of insurance products and services. The company operates via four segments, namely Middle Market, Specialty, MainStreet, and Medicare.
Recently, several research firms released their reports on BRP Group. According to Wells Fargo & Company’s report dated April 5th, the target price for BRP Group was adjusted down from $36.00 to $32.00 with an “overweight” rating for the company. Jefferies Financial Group issued a report on Monday, April 10th, lowering the target price for BRP Group from $29.00 to $28.00 and recommending a “hold” rating for the stock.
William Blair also released a report on March 3rd that downgraded BRP Group from an “outperform” rating to a “market perform” rating. Finally, Raymond James’ report dated May 15th saw them shift their price objective downward from $34.00 to $30.00.
Despite mixed opinions and reports from research firms analysts seem optimistic about the future prospects of the company as institutional investors have heavily invested in it in recent times.
Captrust Financial Advisors grew its position in BRP Group by a staggering 2,262.6% which resulted in owning 2,717 shares of company stock worth roughly $66k after acquiring an additional 2,602 shares in Q2 last year.
Eagle Bay Advisors LLC raised its holdings by 26.8%, currently owning 2,988 shares worth approximately $80k after buying an additional 632 shares during Q3.
Citigroup Inc. has increased its position tremendously by lifting it up by nearly half with at least another quarter since adding more than one thousand two hundred new shares never previously owned when purchasing another three thousand six hundred sixty-nine.
UBS Group AG also acquired 4,070 more shares in Q3 last year to middle-market-specialist company retaining 6,081 which was worth $160k.
Finally, Tower Research Capital LLC TRC also raised its position by over two hundred percent after buying another 5,651 shares during Q3 last year resulting in an increase to their previous positions by around two hundred and forty-six percent.
It is worth noting that as of the date this article is written (June 11th, 2023), nearly forty-eight percent of the stock is retained by institutional investors.
As a result of these significant investment moves from all these firms collectively, BRP Group’s stock opened at $22.55 on Friday marking a low for the year compared to it’s high of $33.34 back in Q2 of last year. It’s fifty-day simple moving average stands at $23.45 and its two-hundred day simple moving average at $26.22 while it sports a debt-to-equity ratio and current ratio of 1.15 and 1.01 respectively.
In conclusion, despite the mixed reviews from different research agencies about its future prospects amidst increased investments made by various institutional investors such as Captrust Financial Advisors Increased its position in Dividend & Income Fund (DNI) by 18.5%, BRP remains focused on providing clients with top-notch insurance products and services to meet their unique needs while maximizing profits for shareholders making it still an attractive option for investors looking to explore investment opportunities within the sector.