Brown & Brown (NYSE:BRO) Releases Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Brown & Brown reported earnings of $1.03 per share, exceeding analysts' estimates of $0.99, and achieved a net margin of 20.84% with a return on equity of 17.77%.
• The company declared a quarterly dividend of $0.15 per share, translating to an annualized dividend of $0.60 and a yield of 0.59%.
• Despite a drop of 0.8% in stock price to $102.55, the company maintains a strong market capitalization of $29.40 billion and a PE ratio of 28.57.

Brown & Brown (NYSE:BRO - Get Free Report) released its earnings results on Monday. The financial services provider reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.99 by $0.04, Zacks reports. Brown & Brown had a return on equity of 15.10% and a net margin of 19.89%. The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.28 billion. During the same period last year, the company earned $0.93 earnings per share. The business's revenue for the quarter was up 9.1% compared to the same quarter last year.

Brown & Brown Stock Down 0.4%

Brown & Brown stock traded down $0.37 during trading hours on Friday, reaching $91.00. The stock had a trading volume of 858,716 shares, compared to its average volume of 2,518,658. The company has a market cap of $30.01 billion, a price-to-earnings ratio of 26.23, a PEG ratio of 2.04 and a beta of 0.82. The company has a debt-to-equity ratio of 0.64, a current ratio of 6.72 and a quick ratio of 2.52. The business's 50 day moving average price is $107.39 and its 200-day moving average price is $111.35. Brown & Brown has a 52 week low of $90.55 and a 52 week high of $125.68.

Brown & Brown Dividend Announcement

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

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. BMO Capital Markets decreased their target price on Brown & Brown from $122.00 to $106.00 and set an "outperform" rating for the company in a research report on Wednesday. Jefferies Financial Group lifted their target price on Brown & Brown from $105.00 to $109.00 and gave the stock a "hold" rating in a research report on Friday, April 11th. Wells Fargo & Company decreased their target price on Brown & Brown from $127.00 to $104.00 and set an "overweight" rating for the company in a research report on Wednesday. Truist Financial set a $120.00 target price on Brown & Brown in a research report on Wednesday. Finally, Argus restated a "hold" rating on shares of Brown & Brown in a report on Thursday. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $114.25.

Hedge Funds Weigh In On Brown & Brown

A hedge fund recently raised its stake in Brown & Brown stock. Focus Partners Wealth lifted its holdings in shares of Brown & Brown, Inc. (NYSE:BRO - Free Report) by 5.2% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 11,149 shares of the financial services provider's stock after acquiring an additional 547 shares during the period. Focus Partners Wealth's holdings in Brown & Brown were worth $1,387,000 at the end of the most recent quarter. 71.01% of the stock is owned by institutional investors and hedge funds.

About Brown & Brown

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.