Brown & Brown (NYSE:BRO) Hits New 1-Year Low - Time to Sell?

Key Points

• Shares hit a new 52-week low, trading as low as $62.51 (last $63.69) on heavy volume, after investor concern over a drop in GAAP EPS to $1.06 versus adjusted $1.39, rising acquisition and integration costs, and flat organic revenue.
• The company reported strong headline results—revenue up ~35.4% to about $1.9B and adjusted EPS of $1.39 (beat)—and the board maintained a quarterly dividend of $0.165 (≈1.1% yield).
• Wall Street has been trimming targets and largely sticking with "Hold" ratings (average target ~$84.27), while institutional investors own roughly 71% of the stock, highlighting mixed analyst sentiment despite heavy insider/institutional involvement.

Brown & Brown, Inc. (NYSE:BRO - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $62.51 and last traded at $63.6930, with a volume of 609981 shares changing hands. The stock had previously closed at $66.12.

Key Headlines Impacting Brown & Brown

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

• Positive Sentiment: Strong top‑line and adjusted operating results: Total revenue rose ~35.4% year‑over‑year to about $1.9B and adjusted EBITDAC and adjusted EPS improved, supporting the company’s growth story. Brown & Brown Q1 Earnings Top Estimates on Higher Commissions
• Positive Sentiment: Dividend maintained: Board declared a quarterly cash dividend of $0.165/sh (≈1.0% yield), a signal of cash returns to shareholders and confidence in cash flow. Q1 press release including dividend
• Neutral Sentiment: Conference call / investor materials available — management commentary on integration, margins and outlook will matter for near‑term sentiment. Investor slide deck / press materials
• Negative Sentiment: Organic revenue flat: Organic revenue growth was 0.0% (organic with contingents +2.2%), raising concern that underlying, non‑acquisition growth is stagnant. Q1 press release
• Negative Sentiment: GAAP EPS confusion / per‑share dilution: Reported diluted net income per share (GAAP) fell to $1.06 (‑7.8% y/y) while the company cites an adjusted diluted EPS of $1.39; some outlets flagged a potential EPS miss on GAAP basis, which likely drove selling pressure. QuiverQuant: Revenue Growth but EPS Miss
• Negative Sentiment: Rising expenses, acquisition costs and leverage: Employee comp, interest and acquisition/integration costs increased; the company’s liabilities and near‑term debt payments rose as it finances acquisitions (including Accession), pressuring margins and balance‑sheet flexibility. Q1 press release (financial tables)

Wall Street Analysts Forecast Growth

BRO has been the subject of several research analyst reports. Weiss Ratings restated a "hold (c)" rating on shares of Brown & Brown in a report on Monday, December 29th. JPMorgan Chase & Co. lowered their target price on shares of Brown & Brown from $91.00 to $85.00 and set a "neutral" rating for the company in a report on Thursday, April 9th. Bank of America lowered their target price on shares of Brown & Brown from $90.00 to $88.00 and set a "neutral" rating for the company in a report on Tuesday, April 14th. Wells Fargo & Company lowered their target price on shares of Brown & Brown from $78.00 to $72.00 and set an "equal weight" rating for the company in a report on Thursday, April 9th. Finally, The Goldman Sachs Group lowered their target price on shares of Brown & Brown from $82.00 to $73.00 and set a "neutral" rating for the company in a report on Wednesday, April 8th. Three equities research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $84.27.

Brown & Brown Stock Performance

The stock has a market cap of $21.14 billion, a price-to-earnings ratio of 19.42, a PEG ratio of 1.80 and a beta of 0.83. The stock's 50 day moving average is $68.06 and its two-hundred day moving average is $75.61. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 0.55.

Brown & Brown (NYSE:BRO - Get Free Report) last issued its quarterly earnings results on Monday, April 27th. The financial services provider reported $1.39 earnings per share for the quarter, topping analysts' consensus estimates of $1.36 by $0.03. The firm had revenue of $1.90 billion during the quarter, compared to analysts' expectations of $1.92 billion. Brown & Brown had a net margin of 17.84% and a return on equity of 12.93%. Brown & Brown's quarterly revenue was up 35.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.29 EPS. Analysts anticipate that Brown & Brown, Inc. will post 4.54 earnings per share for the current fiscal year.

Brown & Brown Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Monday, May 11th will be paid a dividend of $0.165 per share. The ex-dividend date is Monday, May 11th. This represents a $0.66 dividend on an annualized basis and a yield of 1.1%. Brown & Brown's dividend payout ratio is currently 20.63%.

Institutional Trading of Brown & Brown

Several hedge funds have recently made changes to their positions in BRO. AQR Capital Management LLC lifted its stake in shares of Brown & Brown by 38.3% in the 1st quarter. AQR Capital Management LLC now owns 33,444 shares of the financial services provider's stock worth $4,132,000 after acquiring an additional 9,264 shares during the period. Focus Partners Wealth lifted its stake in shares of Brown & Brown by 5.2% in the 1st quarter. Focus Partners Wealth now owns 11,149 shares of the financial services provider's stock worth $1,387,000 after acquiring an additional 547 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in shares of Brown & Brown by 1,824.7% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 53,103 shares of the financial services provider's stock worth $5,888,000 after acquiring an additional 50,344 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Brown & Brown by 27.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,045 shares of the financial services provider's stock worth $116,000 after acquiring an additional 223 shares during the period. Finally, Cary Street Partners Financial LLC lifted its stake in shares of Brown & Brown by 60.9% in the 2nd quarter. Cary Street Partners Financial LLC now owns 933 shares of the financial services provider's stock worth $103,000 after acquiring an additional 353 shares during the period. Institutional investors and hedge funds own 71.01% of the company's stock.

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.

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