Brown & Brown (NYSE:BRO) Reaches New 12-Month Low - Should You Sell?

Key Points

• Brown & Brown, Inc. (NYSE:BRO) recently reached a new 52-week low at $90.38, with the current trading price around $91.16.
• Analysts have mixed ratings on the stock, with seven buy ratings, seven hold ratings, and one sell rating, while the consensus price target is $114.69.
• The company reported quarterly earnings of $1.03 per share, exceeding estimates, and a revenue increase of 9.1% year-over-year, totaling $1.29 billion.

Shares of Brown & Brown, Inc. (NYSE:BRO - Get Free Report) reached a new 52-week low on Wednesday . The company traded as low as $90.38 and last traded at $91.16, with a volume of 616638 shares trading hands. The stock had previously closed at $91.67.

Wall Street Analyst Weigh In

Several research firms recently issued reports on BRO. Jefferies Financial Group boosted their price target on Brown & Brown from $105.00 to $109.00 and gave the company a "hold" rating in a research note on Friday, April 11th. Truist Financial set a $120.00 price objective on Brown & Brown in a report on Wednesday, July 30th. UBS Group lifted their price objective on Brown & Brown from $110.00 to $120.00 and gave the company a "neutral" rating in a report on Wednesday, April 9th. Edward Jones started coverage on Brown & Brown in a report on Wednesday, April 16th. They issued a "buy" rating for the company. Finally, Bank of America raised Brown & Brown from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $126.00 to $130.00 in a report on Wednesday, July 30th. One research analyst has rated the stock with a sell rating, seven have given a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Brown & Brown currently has a consensus rating of "Hold" and an average target price of $114.69.

Brown & Brown Price Performance

The business has a 50-day simple moving average of $105.87 and a 200 day simple moving average of $111.05. The stock has a market cap of $30.21 billion, a P/E ratio of 26.41, a price-to-earnings-growth ratio of 2.11 and a beta of 0.78. The company has a current ratio of 6.72, a quick ratio of 6.72 and a debt-to-equity ratio of 0.64.

Brown & Brown (NYSE:BRO - Get Free Report) last released its quarterly earnings results 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 return on equity of 15.10% and a net margin of 19.89%. The firm had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.28 billion. During the same quarter in the previous year, the company posted $0.93 EPS. The business's revenue was up 9.1% on a year-over-year basis. On average, analysts forecast that Brown & Brown, Inc. will post 4.18 earnings per share for the current year.

Brown & Brown Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 20th. Investors of record on Wednesday, August 13th will be given a dividend of $0.15 per share. The ex-dividend date is Wednesday, August 13th. This represents a $0.60 annualized dividend and a dividend yield of 0.7%. Brown & Brown's dividend payout ratio is presently 17.29%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in BRO. Parnassus Investments LLC bought a new position in Brown & Brown in the first quarter worth approximately $899,139,000. First Trust Advisors LP lifted its holdings in shares of Brown & Brown by 626.6% in the fourth quarter. First Trust Advisors LP now owns 2,350,039 shares of the financial services provider's stock valued at $239,751,000 after purchasing an additional 2,026,589 shares in the last quarter. GAMMA Investing LLC lifted its holdings in shares of Brown & Brown by 13,974.9% in the first quarter. GAMMA Investing LLC now owns 1,112,758 shares of the financial services provider's stock valued at $138,427,000 after purchasing an additional 1,104,852 shares in the last quarter. Handelsbanken Fonder AB lifted its holdings in shares of Brown & Brown by 172.5% in the first quarter. Handelsbanken Fonder AB now owns 1,314,434 shares of the financial services provider's stock valued at $163,516,000 after purchasing an additional 832,100 shares in the last quarter. Finally, Balyasny Asset Management L.P. lifted its holdings in shares of Brown & Brown by 9,262.2% in the fourth quarter. Balyasny Asset Management L.P. now owns 687,095 shares of the financial services provider's stock valued at $70,097,000 after purchasing an additional 679,756 shares in the last quarter. Institutional investors 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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