Brown & Brown, Inc. (NYSE:BRO) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Consensus "Hold": Eighteen analysts cover Brown & Brown (15 hold, 3 buy) with an average 12‑month price target of about $84.27, and several brokers have recently trimmed their targets.
• Mixed Q1 results: Revenue rose ~35.4% to ~$1.9B and adjusted EPS was $1.39 (slightly beating estimates), but organic revenue was flat and GAAP EPS fell amid acquisition-related charges and accounting noise, raising execution and cash‑flow concerns.
• Shareholder returns and market reaction: the board declared a quarterly dividend of $0.165 (annualized $0.66, ~1.0% yield), while shares traded down roughly 4.7% and the stock carries a market cap near $21.5B with ~71% institutional ownership.

Brown & Brown, Inc. (NYSE:BRO - Get Free Report) has been assigned a consensus recommendation of "Hold" from the eighteen research firms that are currently covering the stock, MarketBeat.com reports. Fifteen research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $84.2667.

BRO has been the subject of several analyst reports. Truist Financial lowered their target price on Brown & Brown from $105.00 to $100.00 and set a "buy" rating for the company in a research report on Wednesday, January 28th. BMO Capital Markets lowered their target price on Brown & Brown from $88.00 to $81.00 and set a "market perform" rating for the company in a research report on Thursday, January 29th. Bank of America lowered their target price on Brown & Brown from $90.00 to $88.00 and set a "neutral" rating for the company in a research report on Tuesday, April 14th. UBS Group reaffirmed a "neutral" rating and set a $81.00 target price (down from $90.00) on shares of Brown & Brown in a research report on Thursday, January 29th. Finally, JPMorgan Chase & Co. lowered their target price on Brown & Brown from $91.00 to $85.00 and set a "neutral" rating for the company in a research report on Thursday, April 9th.

Key Brown & Brown News

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

• Positive Sentiment: Revenue and operating margin strength: total Q1 revenue rose to ~$1.9B (+35.4% year‑over‑year) and adjusted EBITDAC expanded to $731M (margin ~38.5%), showing solid scale from acquisitions and underlying operating leverage. Read More.
• Positive Sentiment: Adjusted EPS and shareholder return: Diluted net income per share — adjusted was $1.39 (up ~7.8% year/yr) and the board declared a quarterly cash dividend of $0.165. These items support near‑term earnings quality and cash return to holders. Read More.
• Neutral Sentiment: Investor materials available: management hosted an earnings presentation and call; the transcript and slide deck provide detail on acquisition impacts, contingency accounting and integration plans for Accession. Useful for digging into assumptions behind adjusted metrics. Read More.
• Negative Sentiment: Flat organic revenue growth: core (organic) commissions and fees were essentially flat (0.0% organic revenue growth; organic with contingents +2.2%), signaling that underlying new business growth outside acquisitions is weak — a key long‑term growth concern for investors. Read More.
• Negative Sentiment: GAAP EPS and accounting noise created confusion: GAAP diluted EPS fell to $1.06 (down ~7.8% y/y) while adjusted EPS was higher — the divergence (earnings adjustments, escrow mark‑to‑market, acquisition/integration costs) likely contributed to investor selling and volatility. Read More.
• Negative Sentiment: Balance sheet and expense items tied to acquisitions: acquisition-related charges, mark‑to‑market escrow effects and higher liabilities (and recent treasury stock purchases) raise leverage and near‑term cash‑flow questions tied to the Accession deal integration. That raises execution risk despite headline scale. Read More.

Institutional Trading of Brown & Brown

A number of large investors have recently bought and sold shares of the business. Whittier Trust Co. of Nevada Inc. grew its holdings in Brown & Brown by 4.0% during the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 92,223 shares of the financial services provider's stock worth $6,135,000 after acquiring an additional 3,567 shares during the period. Whittier Trust Co. grew its holdings in Brown & Brown by 9.1% during the 1st quarter. Whittier Trust Co. now owns 196,182 shares of the financial services provider's stock worth $13,050,000 after acquiring an additional 16,310 shares during the period. Ascentis Independent Advisors acquired a new stake in Brown & Brown during the 1st quarter worth about $83,000. Praxis Investment Management Inc. grew its holdings in Brown & Brown by 35.4% during the 1st quarter. Praxis Investment Management Inc. now owns 19,804 shares of the financial services provider's stock worth $1,291,000 after acquiring an additional 5,176 shares during the period. Finally, Revisor Wealth Management LLC grew its holdings in Brown & Brown by 16.0% during the 1st quarter. Revisor Wealth Management LLC now owns 5,528 shares of the financial services provider's stock worth $371,000 after acquiring an additional 764 shares during the period. 71.01% of the stock is currently owned by institutional investors and hedge funds.

Brown & Brown Stock Down 4.7%

Shares of NYSE:BRO opened at $63.02 on Wednesday. The firm has a market cap of $21.45 billion, a P/E ratio of 20.26, a P/E/G ratio of 1.80 and a beta of 0.83. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 0.55. Brown & Brown has a 12-month low of $61.65 and a 12-month high of $113.83. The business has a fifty day simple moving average of $67.94 and a 200 day simple moving average of $75.38.

Brown & Brown (NYSE:BRO - Get Free Report) last announced its earnings results on Monday, April 27th. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.03. The business had revenue of $1.90 billion during the quarter, compared to analyst estimates of $1.92 billion. Brown & Brown had a return on equity of 13.05% and a net margin of 17.94%.Brown & Brown's revenue for the quarter was up 35.4% compared to the same quarter last year. During the same period last year, the company earned $1.29 EPS. Analysts predict that Brown & Brown will post 4.54 earnings per share for the current year.

Brown & Brown Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 20th. Shareholders of record on Monday, May 11th will be issued a dividend of $0.165 per share. This represents a $0.66 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Monday, May 11th. Brown & Brown's dividend payout ratio (DPR) is presently 20.63%.

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.

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