Brown & Brown (NYSE:BRO) Hits New 52-Week Low - What's Next?

Key Points

• Brown & Brown's stock hit a new 52-week low of $89.37 during trading, closing at $89.49, down from a previous close of $93.97.
• Analysts have revised their target prices, with Morgan Stanley lowering its target from $105.00 to $100.00, while seven analysts have rated the stock as a Buy and eight have given it a Hold rating.
• The company recently announced a quarterly dividend of $0.15 per share, resulting in a yield of 0.7% and a dividend payout ratio of 17.29%.

Brown & Brown, Inc. (NYSE:BRO - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $89.37 and last traded at $89.49, with a volume of 518154 shares. The stock had previously closed at $93.97.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on BRO shares. Morgan Stanley cut their target price on shares of Brown & Brown from $105.00 to $100.00 and set an "equal weight" rating for the company in a research note on Tuesday, October 7th. Wall Street Zen upgraded shares of Brown & Brown from a "sell" rating to a "hold" rating in a research note on Saturday, September 20th. BMO Capital Markets decreased their price objective on Brown & Brown from $122.00 to $106.00 and set an "outperform" rating on the stock in a report on Wednesday, July 30th. Argus reaffirmed a "hold" rating on shares of Brown & Brown in a report on Thursday, July 31st. Finally, Wells Fargo & Company decreased their price objective on Brown & Brown from $101.00 to $98.00 and set an "equal weight" rating on the stock in a report on Wednesday, October 8th. Seven research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $109.92.

Brown & Brown Price Performance

The stock has a market capitalization of $29.54 billion, a price-to-earnings ratio of 25.77, a P/E/G ratio of 2.13 and a beta of 0.79. The company has a quick ratio of 6.72, a current ratio of 6.72 and a debt-to-equity ratio of 0.64. The business's 50 day simple moving average is $94.48 and its 200-day simple moving average is $104.42.

Brown & Brown (NYSE:BRO - Get Free Report) last announced its quarterly earnings data on Monday, July 28th. The financial services provider reported $1.03 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same period in the prior year, the company posted $0.93 earnings per share. The business's revenue for the quarter was up 9.1% on a year-over-year basis. On average, research analysts forecast that Brown & Brown, Inc. will post 4.18 earnings per share for the current year.

Brown & Brown Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 20th. Shareholders of record on Wednesday, August 13th were given a $0.15 dividend. The ex-dividend date was Wednesday, August 13th. This represents a $0.60 dividend on an annualized basis and a yield of 0.7%. Brown & Brown's dividend payout ratio (DPR) is currently 17.29%.

Insider Buying and Selling

In related news, Director Paul J. Krump bought 2,678 shares of the business's stock in a transaction on Friday, August 8th. The shares were purchased at an average price of $93.31 per share, for a total transaction of $249,884.18. Following the completion of the transaction, the director directly owned 5,353 shares of the company's stock, valued at approximately $499,488.43. This represents a 100.11% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, Director Bronislaw Edmund Masojada bought 1,000 shares of the business's stock in a transaction on Wednesday, August 6th. The stock was bought at an average price of $91.44 per share, for a total transaction of $91,440.00. Following the transaction, the director directly owned 5,000 shares of the company's stock, valued at approximately $457,200. This represents a 25.00% increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 17.02% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. CWM LLC lifted its holdings in Brown & Brown by 895.9% during the 3rd quarter. CWM LLC now owns 62,545 shares of the financial services provider's stock worth $5,866,000 after buying an additional 56,265 shares during the period. SFM LLC lifted its holdings in Brown & Brown by 13.1% during the 3rd quarter. SFM LLC now owns 9,210 shares of the financial services provider's stock worth $864,000 after buying an additional 1,069 shares during the period. Inspire Investing LLC increased its position in shares of Brown & Brown by 29.1% during the third quarter. Inspire Investing LLC now owns 3,305 shares of the financial services provider's stock worth $310,000 after buying an additional 744 shares during the period. Milestone Asset Management LLC acquired a new stake in shares of Brown & Brown during the third quarter worth $201,000. Finally, World Investment Advisors lifted its stake in Brown & Brown by 64.2% in the third quarter. World Investment Advisors now owns 3,209 shares of the financial services provider's stock valued at $301,000 after buying an additional 1,255 shares during the period. Institutional investors and hedge funds own 71.01% of the company's stock.

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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