Brown & Brown (NYSE:BRO) Price Target Cut to $90.00 by Analysts at Bank of America

Brown & Brown (NYSE:BRO) had its price objective trimmed by Bank of America from $94.00 to $90.00 in a research report sent to investors on Tuesday,Benzinga reports. The firm currently has a neutral rating on the financial services provider’s stock.

A number of other brokerages have also recently issued reports on BRO. Keefe, Bruyette & Woods upped their target price on shares of Brown & Brown from $79.00 to $80.00 and gave the company an “underperform” rating in a report on Tuesday, January 6th. Truist Financial dropped their price objective on Brown & Brown from $114.00 to $105.00 and set a “buy” rating on the stock in a research note on Thursday, January 15th. Weiss Ratings reiterated a “hold (c)” rating on shares of Brown & Brown in a research note on Monday, December 29th. BMO Capital Markets restated a “market perform” rating on shares of Brown & Brown in a research note on Tuesday, December 30th. Finally, Mizuho set a $89.00 price objective on shares of Brown & Brown and gave the stock a “neutral” rating in a research report on Monday, December 15th. Four research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Brown & Brown presently has a consensus rating of “Hold” and an average price target of $98.13.

Brown & Brown Stock Down 6.9%

NYSE:BRO opened at $74.09 on Tuesday. Brown & Brown has a twelve month low of $73.10 and a twelve month high of $125.68. The firm has a market capitalization of $25.30 billion, a price-to-earnings ratio of 23.15, a price-to-earnings-growth ratio of 1.86 and a beta of 0.81. The company has a quick ratio of 2.10, a current ratio of 2.10 and a debt-to-equity ratio of 0.62. The stock’s 50 day moving average price is $79.74 and its two-hundred day moving average price is $87.88.

Brown & Brown (NYSE:BRO) last released its earnings results on Monday, January 26th. The financial services provider reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.91 by $0.02. Brown & Brown had a net margin of 17.84% and a return on equity of 13.65%. The business had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.65 billion. During the same period last year, the business earned $0.86 earnings per share. The firm’s revenue was up 35.7% on a year-over-year basis. Equities research analysts expect that Brown & Brown will post 4.18 earnings per share for the current fiscal year.

Brown & Brown Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, February 11th. Stockholders of record on Wednesday, February 4th will be issued 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 dividend yield of 0.9%. Brown & Brown’s dividend payout ratio (DPR) is currently 19.76%.

Institutional Investors Weigh In On Brown & Brown

Large investors have recently added to or reduced their stakes in the stock. Darwin Wealth Management LLC acquired a new stake in shares of Brown & Brown during the 2nd quarter worth $30,000. Cornerstone Planning Group LLC lifted its position in 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 purchasing an additional 220 shares during the period. Motco acquired a new stake in Brown & Brown during the second quarter worth about $32,000. TD Private Client Wealth LLC increased its holdings in Brown & Brown by 39.3% in the 2nd quarter. TD Private Client Wealth LLC now owns 436 shares of the financial services provider’s stock valued at $48,000 after buying an additional 123 shares during the period. Finally, Migdal Insurance & Financial Holdings Ltd. acquired a new position in shares of Brown & Brown in the 2nd quarter valued at approximately $49,000. Institutional investors and hedge funds own 71.01% of the company’s stock.

Key Brown & Brown News

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

• Positive Sentiment: Adjusted earnings and operating performance: Brown & Brown reported Diluted Net Income Per Share — Adjusted of $0.93 (up YoY) and higher EBITDAC / adjusted margins, which beat some expectations and supports the company’s operating story. Zacks: Q4 Earnings Beat
• Positive Sentiment: Strong top‑line (acquisition‑driven) growth: Total revenues rose ~35.7% YoY to about $1.6B, driven largely by acquisitions (Accession/RSC) which materially increased scale and fee income. Press Release
• Neutral Sentiment: Earnings call/transcript available — management reiterated growth from acquisitions but signaled margin pressure and integration items; read the call highlights and transcript for management tone and any forward comments. TipRanks: Call Highlights
• Neutral Sentiment: Investor commentary/valuation views: Some value‑oriented writeups see a deeper discount after the pullback, noting long‑term strengths in the brokerage model. Seeking Alpha
• Neutral Sentiment: Company news: the firm announced the passing of its Chief Legal Officer — a human resources / governance item investors will note but is not a primary driver of the price move. Press Release
• Negative Sentiment: Revenue shortfall vs. Street: Reported revenue (~$1.61B) came in below several consensus estimates (~$1.65–1.67B), prompting the immediate market reaction and headlines that shares fell on a revenue miss. MarketWatch
• Negative Sentiment: Weak organic growth and GAAP EPS compression: Organic revenue declined ~2.8% in Q4 and GAAP diluted EPS fell to $0.59 (year‑over‑year decline), which raises concern about core‑business momentum absent acquisitions. Quiver / Press Summary
• Negative Sentiment: Higher leverage and integration costs: The Accession acquisition added goodwill, intangibles and long‑term debt; investors are weighing integration costs, acquisition earn‑outs and higher interest expense. Reuters
• Negative Sentiment: Analyst reactions: Banks trimmed targets/ratings (Barclays lowered to $82 / equal‑weight; Bank of America cut target to $90 / neutral), which adds near‑term selling pressure. Benzinga: Analyst Moves

Brown & Brown Company Profile

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.