Brown & Brown (NYSE:BRO) Hits New 52-Week Low on Analyst Downgrade

Shares of Brown & Brown, Inc. (NYSE:BRO) reached a new 52-week low on Tuesday after Bank of America lowered their price target on the stock from $94.00 to $90.00. Bank of America currently has a neutral rating on the stock. Brown & Brown traded as low as $73.52 and last traded at $73.7460, with a volume of 1195407 shares. The stock had previously closed at $79.62.

BRO has been the topic of several other reports. Citigroup lowered Brown & Brown from a “buy” rating to a “neutral” rating in a research report on Monday, November 3rd. UBS Group reduced their target price on Brown & Brown from $120.00 to $106.00 and set a “neutral” rating on the stock in a report on Wednesday, October 8th. Keefe, Bruyette & Woods boosted their target price on Brown & Brown from $79.00 to $80.00 and gave the stock an “underperform” rating in a research report on Tuesday, January 6th. Raymond James Financial reiterated an “outperform” rating on shares of Brown & Brown in a research report on Monday, November 3rd. Finally, JPMorgan Chase & Co. started coverage on shares of Brown & Brown in a research note on Thursday, December 18th. They set a “neutral” rating and a $91.00 price objective on the stock. Four investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $98.20.

Brown & Brown News Roundup

Here are the key news stories impacting Brown & Brown this week:

• Positive Sentiment: Big top-line growth — total revenues rose ~35.7% to ~$1.6B for Q4, and full‑year revenue was up ~22.8%, reflecting the Accession acquisition and scale gains. GlobeNewswire: Q4 Release
• Positive Sentiment: Adjusted profitability improved — EBITDAC and Diluted Net Income Per Share (Adjusted) increased (Adjusted EPS reported at $0.93), signaling better operating performance on an adjusted basis. Reuters: Profit Rises
• Neutral Sentiment: Investor event — management will host a conference call/webcast (Jan 27) where management may clarify organic trends and integration plans for Accession; watch for commentary on margins and cash flow. Investor Slides/Release
• Neutral Sentiment: Company announcement — Brown & Brown announced the passing of its Chief Legal Officer; operational impact appears limited but it’s a management change to monitor. GlobeNewswire: CLO Passing
• Negative Sentiment: GAAP EPS weakness and mixed prints — GAAP diluted EPS fell to $0.59 (down ~19% YoY) and some outlets reported the quarter missed street EPS expectations on a GAAP basis, creating confusion vs. adjusted results and pressuring the stock. Business Insider / Quiver summary
• Negative Sentiment: Organic revenue declined 2.8% in Q4 and income‑before‑tax margin narrowed — underlying (core) growth is soft, meaning future growth may rely on further acquisitions. GlobeNewswire: Organic Revenue Details
• Negative Sentiment: Higher leverage from acquisitions — large acquisition cash outflows and increased long‑term debt balance have raised leverage and investor sensitivity to integration execution and interest costs. Quiver: Results & Balance Sheet
• Negative Sentiment: Analyst action — Bank of America lowered its price target from $94 to $90 and moved to neutral, which likely added selling pressure. Benzinga: BofA Target Cut
• Negative Sentiment: Market reaction — several outlets reported shares fell after the print, reflecting investor concern over the mix of acquisition-driven growth, GAAP EPS weakness and organic softness. MSN: Shares Fall

Institutional Trading of Brown & Brown

Several hedge funds and other institutional investors have recently modified their holdings of BRO. Cornerstone Planning Group LLC grew its holdings in shares of Brown & Brown by 423.1% during the third quarter. Cornerstone Planning Group LLC now owns 272 shares of the financial services provider’s stock worth $26,000 after buying an additional 220 shares in the last quarter. ST Germain D J Co. Inc. lifted its stake in Brown & Brown by 298.5% in the 2nd quarter. ST Germain D J Co. Inc. now owns 267 shares of the financial services provider’s stock valued at $30,000 after acquiring an additional 200 shares in the last quarter. Darwin Wealth Management LLC acquired a new position in Brown & Brown during the 2nd quarter worth approximately $30,000. Motco bought a new position in shares of Brown & Brown during the 2nd quarter worth approximately $32,000. Finally, Board of the Pension Protection Fund bought a new stake in shares of Brown & Brown in the fourth quarter worth $40,000. Institutional investors and hedge funds own 71.01% of the company’s stock.

Brown & Brown Price Performance

The firm has a market cap of $25.18 billion, a price-to-earnings ratio of 22.26, a PEG ratio of 1.85 and a beta of 0.81. The company’s fifty day moving average is $79.86 and its 200 day moving average is $88.11. The company has a quick ratio of 2.10, a current ratio of 2.10 and a debt-to-equity ratio of 0.62.

Brown & Brown (NYSE:BRO) last issued its quarterly earnings results on Monday, January 26th. The financial services provider reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.91 by $0.02. Brown & Brown had a net margin of 18.23% and a return on equity of 13.64%. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same period in the previous year, the business earned $0.86 EPS. The company’s revenue was up 35.7% compared to the same quarter last year. On average, equities research analysts predict that Brown & Brown, Inc. will post 4.18 EPS for the current year.

Brown & Brown Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, February 11th. Investors of record on Wednesday, February 4th will be given a dividend of $0.165 per share. The ex-dividend date of this dividend is Wednesday, February 4th. This represents a $0.66 annualized dividend and a yield of 0.9%. Brown & Brown’s dividend payout ratio is 19.76%.

About Brown & Brown

Brown & Brown, Inc (NYSE: BRO) is a professional insurance brokerage and risk advisory firm that provides a broad range of property and casualty, employee benefits, personal risk, and specialty insurance products. The company works with commercial, public sector and individual clients to design and place insurance programs, manage claims and loss control, and deliver risk management consulting. Its services also include wholesale brokerage, program administration and other specialty distribution solutions that connect carriers and intermediaries to niche markets.

Brown & Brown operates through a decentralized model of operating units and subsidiaries, enabling local client service with the scale to access national and specialty markets.