Brown & Brown (NYSE:BRO) Lowered to "Hold (C+)" Rating by Weiss Ratings

Key Points

• Brown & Brown has been downgraded by Weiss Ratings from a "buy" rating to a "hold" rating, indicating a more cautious outlook on the stock.
• Several investment firms, including Keefe, Bruyette & Woods and Wells Fargo, have also reduced their price targets for Brown & Brown, reflecting a decline in confidence among analysts.
• Despite these downgrades, Brown & Brown reported a 9.1% increase in quarterly revenue compared to last year, signaling potential underlying strength in its business operations.

Brown & Brown (NYSE:BRO - Get Free Report) was downgraded by investment analysts at Weiss Ratings from a "buy (b-)" rating to a "hold (c+)" rating in a report released on Wednesday,Weiss Ratings reports.

BRO has been the topic of a number of other reports. Keefe, Bruyette & Woods reduced their price target on shares of Brown & Brown from $104.00 to $87.00 and set an "underperform" rating on the stock in a research report on Thursday, July 31st. Wells Fargo & Company decreased their target price on Brown & Brown from $101.00 to $98.00 and set an "equal weight" rating for the company in a research report on Wednesday. Morgan Stanley cut their price target on Brown & Brown from $105.00 to $100.00 and set an "equal weight" rating for the company in a research note on Tuesday. Wall Street Zen raised Brown & Brown from a "sell" rating to a "hold" rating in a report on Saturday, September 20th. Finally, Barclays cut their target price on Brown & Brown from $108.00 to $102.00 and set an "equal weight" rating on the stock in a research report on Wednesday. Seven investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $109.92.

Brown & Brown Price Performance

Shares of Brown & Brown stock traded up $0.39 during midday trading on Wednesday, hitting $95.94. 2,555,357 shares of the company traded hands, compared to its average volume of 2,558,475. The firm's fifty day moving average price is $94.12 and its 200-day moving average price is $105.42. The company has a debt-to-equity ratio of 0.64, a quick ratio of 6.72 and a current ratio of 6.72. Brown & Brown has a 12 month low of $89.99 and a 12 month high of $125.68. The stock has a market cap of $31.64 billion, a price-to-earnings ratio of 27.65, a PEG ratio of 2.13 and a beta of 0.79.

Brown & Brown (NYSE:BRO - Get Free Report) last released its earnings results on Monday, July 28th. The financial services provider reported $1.03 earnings per share (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 for the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter in the previous year, the company earned $0.93 EPS. Brown & Brown's quarterly revenue was up 9.1% compared to the same quarter last year. As a group, sell-side analysts forecast that Brown & Brown will post 4.18 earnings per share for the current year.

Insider Transactions at Brown & Brown

In other Brown & Brown news, Director Bronislaw Edmund Masojada bought 1,000 shares of Brown & Brown stock in a transaction dated 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 completion of the acquisition, the director directly owned 5,000 shares of the company's stock, valued at approximately $457,200. This trade represents a 25.00% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Paul J. Krump acquired 2,678 shares of the business's stock in a transaction that occurred on Friday, August 8th. The shares were acquired at an average cost of $93.31 per share, with a total value of $249,884.18. Following the transaction, the director directly owned 5,353 shares in the company, valued at $499,488.43. The trade was a 100.11% increase in their position. The disclosure for this purchase can be found here. 15.59% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Phillips Wealth Planners LLC boosted its position in shares of Brown & Brown by 3.4% in the 1st quarter. Phillips Wealth Planners LLC now owns 2,659 shares of the financial services provider's stock worth $316,000 after purchasing an additional 88 shares during the last quarter. SBI Securities Co. Ltd. boosted its position in shares of Brown & Brown by 26.8% in the 1st quarter. SBI Securities Co. Ltd. now owns 454 shares of the financial services provider's stock worth $56,000 after purchasing an additional 96 shares during the last quarter. Graypoint LLC boosted its position in shares of Brown & Brown by 3.3% in the 1st quarter. Graypoint LLC now owns 3,208 shares of the financial services provider's stock worth $399,000 after purchasing an additional 103 shares during the last quarter. NorthRock Partners LLC grew its stake in Brown & Brown by 4.2% in the first quarter. NorthRock Partners LLC now owns 2,530 shares of the financial services provider's stock valued at $315,000 after acquiring an additional 103 shares during the period. Finally, Parallel Advisors LLC grew its stake in Brown & Brown by 4.3% in the second quarter. Parallel Advisors LLC now owns 2,508 shares of the financial services provider's stock valued at $278,000 after acquiring an additional 103 shares during the period. Institutional investors own 71.01% of the company's stock.

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.

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