Brown & Brown (NYSE:BRO) Issues Quarterly Earnings Results

Brown & Brown (NYSE:BRO) posted its quarterly earnings data on Monday. The financial services provider reported $1.39 EPS for the quarter, beating the consensus estimate of $1.36 by $0.03, FiscalAI reports. The firm had revenue of $1.90 billion during the quarter, compared to analyst estimates of $1.92 billion. Brown & Brown had a net margin of 17.84% and a return on equity of 12.93%. The company’s revenue for the quarter was up 35.4% on a year-over-year basis. During the same quarter last year, the business posted $1.29 EPS.

Brown & Brown Stock Performance

Brown & Brown stock opened at $66.18 on Tuesday. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.66 and a quick ratio of 1.66. Brown & Brown has a 1-year low of $63.29 and a 1-year high of $115.45. The firm has a market capitalization of $22.53 billion, a P/E ratio of 20.68, a price-to-earnings-growth ratio of 1.80 and a beta of 0.83. The company’s 50-day moving average is $68.06 and its 200 day moving average is $75.61.

Brown & Brown Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Monday, May 11th will be given a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Monday, May 11th. Brown & Brown’s dividend payout ratio is 20.63%.

Analysts Set New Price Targets

BRO has been the subject of a number of research reports. BMO Capital Markets cut their price objective on shares of Brown & Brown from $88.00 to $81.00 and set a “market perform” rating for the company in a research note on Thursday, January 29th. Bank of America decreased their target price on shares of Brown & Brown from $90.00 to $88.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 14th. Jefferies Financial Group decreased their price objective on shares of Brown & Brown from $89.00 to $84.00 and set a “hold” rating on the stock in a research report on Wednesday, January 28th. Keefe, Bruyette & Woods boosted their price objective on shares of Brown & Brown from $73.00 to $74.00 and gave the company a “market perform” rating in a research report on Tuesday, April 7th. Finally, Wells Fargo & Company dropped their price objective on shares of Brown & Brown from $78.00 to $72.00 and set an “equal weight” rating on the stock in a research note on Thursday, April 9th. Three research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company. Based on data from MarketBeat, Brown & Brown presently has a consensus rating of “Hold” and a consensus target price of $84.27.

Institutional Trading of Brown & Brown

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State Street Corp grew its position in shares of Brown & Brown by 2.2% in the 4th quarter. State Street Corp now owns 13,403,814 shares of the financial services provider’s stock worth $1,068,284,000 after buying an additional 282,988 shares during the last quarter. Invesco Ltd. increased its holdings in Brown & Brown by 19.0% in the 4th quarter. Invesco Ltd. now owns 2,858,421 shares of the financial services provider’s stock worth $227,816,000 after acquiring an additional 456,412 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of Brown & Brown by 16.8% during the second quarter. Bank of America Corp DE now owns 2,703,009 shares of the financial services provider’s stock worth $299,683,000 after buying an additional 389,578 shares in the last quarter. Northern Trust Corp boosted its stake in Brown & Brown by 3.3% during the third quarter. Northern Trust Corp now owns 2,602,360 shares of the financial services provider’s stock worth $244,075,000 after buying an additional 83,603 shares during the period. Finally, JPMorgan Chase & Co. boosted its stake in Brown & Brown by 25.4% during the fourth quarter. JPMorgan Chase & Co. now owns 2,422,970 shares of the financial services provider’s stock worth $193,111,000 after buying an additional 491,131 shares during the period. 71.01% of the stock is owned by hedge funds and other institutional investors.

Brown & Brown News Roundup

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

• Positive Sentiment: Strong topline and net-income growth: total revenues of about $1.9B (+35.4% YoY) and net income of $426M (+28.7% YoY), showing sizable scale expansion largely driven by acquisitions. Brown & Brown Q1 Press Release
• Positive Sentiment: Adjusted EPS beat consensus: Diluted Net Income Per Share – Adjusted was $1.39 vs. consensus ~$1.36, and adjusted operating metrics (EBITDAC – Adjusted margin) improved — a sign management highlights for underlying performance. Zacks: BRO Tops Q1 Estimates
• Positive Sentiment: Board declared a regular quarterly cash dividend of $0.165 per share (payable May 20), signaling continued shareholder return. Dividend and Q1 Release
• Neutral Sentiment: Core (organic) revenue was flat sequentially/YoY (0.0% organic revenue growth; organic revenue with contingents +2.2%), indicating that acquisition contribution drove most of the headline growth. This tempers the quality of the revenue gain. Business Insider: Q1 Results Summary
• Neutral Sentiment: Street sentiment remains mixed but constructive on targets (median analyst target ~$81) with at least one recent Buy from Truist — suggests some analysts view current share price as discounted to longer-term objectives. QuiverQuant: Q1 Data & Analyst Notes
• Negative Sentiment: GAAP diluted EPS fell to $1.06 (down ~7.8% YoY) and, depending on the data provider, some reported an EPS miss versus certain estimates — a potential near-term catalyst for selling. QuiverQuant: Revenue Growth but EPS Miss
• Negative Sentiment: Acquisition-related costs, higher amortization and interest expense and increased long-term debt (post-Accession) pressured GAAP margins and increased liabilities — raises leverage and integration risk that investors may penalize. Press Release: Acquisition & Financial Details

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.