Brown & Brown (NYSE:BRO) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• Brown & Brown has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating a shift in investor sentiment regarding the stock's performance.
• Despite the downgrade, the company's stock currently has a consensus rating of "Hold" and a price target of $112.93 among analysts.
• Brown & Brown reported a quarterly earnings of $1.03 EPS, surpassing expectations, with revenues increasing by 9.1% year-over-year.

Brown & Brown (NYSE:BRO - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

Other research analysts also recently issued research reports about the stock. Argus reissued a "hold" rating on shares of Brown & Brown in a research report on Thursday, July 31st. Citigroup started coverage on shares of Brown & Brown in a report on Wednesday. They set a "buy" rating and a $112.00 target price for the company. Barclays reduced their target price on shares of Brown & Brown from $111.00 to $108.00 and set an "equal weight" rating for the company in a report on Tuesday, July 29th. BMO Capital Markets reduced their target price on shares of Brown & Brown from $122.00 to $106.00 and set an "outperform" rating for the company in a report on Wednesday, July 30th. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Brown & Brown from $104.00 to $87.00 and set an "underperform" rating for the company in a report on Thursday, July 31st. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $112.93.

Brown & Brown Stock Performance

Shares of BRO opened at $95.35 on Friday. The firm has a 50-day moving average of $103.09 and a 200-day moving average of $110.38. Brown & Brown has a one year low of $90.38 and a one year high of $125.68. The company has a market cap of $31.45 billion, a PE ratio of 27.48, a price-to-earnings-growth ratio of 2.16 and a beta of 0.78. The company has a debt-to-equity ratio of 0.64, a current ratio of 6.72 and a quick ratio of 6.72.

Brown & Brown (NYSE:BRO - Get Free Report) last announced its quarterly earnings data on Monday, July 28th. The financial services provider reported $1.03 EPS for the quarter, beating analysts' consensus estimates of $0.99 by $0.04. Brown & Brown had a net margin of 19.89% and a return on equity of 15.10%. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter last year, the firm posted $0.93 EPS. The company's quarterly revenue was up 9.1% on a year-over-year basis. As a group, equities analysts forecast that Brown & Brown will post 4.18 earnings per share for the current year.

Insider Activity

In other Brown & Brown news, Director Bronislaw Edmund Masojada acquired 1,000 shares of the company's stock in a transaction on Wednesday, August 6th. The stock was acquired at an average price of $91.44 per share, for a total transaction of $91,440.00. Following the purchase, the director directly owned 5,000 shares of the company's stock, valued at $457,200. This trade represents a 25.00% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Paul J. Krump acquired 2,678 shares of the company's stock in a transaction on Friday, August 8th. The stock was acquired at an average price of $93.31 per share, with a total value of $249,884.18. Following the purchase, the director directly owned 5,353 shares in the company, valued at approximately $499,488.43. This represents a 100.11% increase in their ownership of the stock. The disclosure for this purchase can be found here. 17.02% of the stock is owned by insiders.

Hedge Funds Weigh In On Brown & Brown

Hedge funds and other institutional investors have recently made changes to their positions in the company. Capital Investment Advisors LLC acquired a new position in shares of Brown & Brown in the 1st quarter valued at approximately $1,929,000. GW&K Investment Management LLC raised its position in shares of Brown & Brown by 104.4% in the 1st quarter. GW&K Investment Management LLC now owns 419 shares of the financial services provider's stock valued at $52,000 after buying an additional 214 shares in the last quarter. Fifth Third Bancorp raised its position in shares of Brown & Brown by 7.1% in the 1st quarter. Fifth Third Bancorp now owns 6,807 shares of the financial services provider's stock valued at $847,000 after buying an additional 450 shares in the last quarter. Tandem Investment Advisors Inc. raised its position in shares of Brown & Brown by 2.5% in the 1st quarter. Tandem Investment Advisors Inc. now owns 764,709 shares of the financial services provider's stock valued at $95,130,000 after buying an additional 18,677 shares in the last quarter. Finally, FORA Capital LLC acquired a new position in shares of Brown & Brown in the 4th quarter valued at approximately $580,000. 71.01% of the stock is currently owned by institutional investors and hedge funds.

Brown & Brown Company Profile

Brown & Brown, Inc is an insurance agency, wholesale brokerage, insurance program and service organization. It engages in the provision of insurance brokerage services and casualty insurance underwriting services. It operates through the following segments: Retail, National Programs, Wholesale Brokerage, and Services.

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