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

Key Points

• Brown & Brown shares hit a new 52-week low, trading as low as $55.26 during intraday action and ending near $55.63, well below both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but cautious: several firms recently cut price targets, while the overall consensus remains Hold with an average target price of $80.73.
• The company reported better-than-expected quarterly results with EPS of $1.39 versus $1.36 expected, and it also announced a quarterly dividend of $0.165 per share.

Shares of Brown & Brown, Inc. (NYSE:BRO - Get Free Report) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $55.26 and last traded at $55.6290, with a volume of 138016 shares changing hands. The stock had previously closed at $56.45.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Morgan Stanley cut their target price on Brown & Brown from $76.00 to $70.00 and set an "equal weight" rating on the stock in a research report on Monday, April 6th. Truist Financial cut their target price on Brown & Brown from $100.00 to $90.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. The Goldman Sachs Group cut their target price on Brown & Brown from $82.00 to $73.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 8th. Keefe, Bruyette & Woods cut their price target on Brown & Brown from $74.00 to $72.00 and set a "market perform" rating on the stock in a research report on Wednesday, April 29th. Finally, Citigroup raised Brown & Brown from a "neutral" rating to a "buy" rating and set a $70.00 price target on the stock in a research report on Wednesday, May 6th. Four investment analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $80.73.

Brown & Brown Stock Performance

The company has a debt-to-equity ratio of 0.52, a current ratio of 1.64 and a quick ratio of 1.64. The stock has a market capitalization of $18.84 billion, a PE ratio of 17.85, a P/E/G ratio of 2.60 and a beta of 0.66. The stock has a 50 day moving average of $66.87 and a two-hundred day moving average of $74.22.

Brown & Brown (NYSE:BRO - Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The financial services provider reported $1.39 earnings per share for the quarter, beating analysts' consensus estimates of $1.36 by $0.03. Brown & Brown had a return on equity of 12.94% and a net margin of 17.94%.The firm had revenue of $1.90 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same period in the previous year, the business earned $1.29 earnings per share. The company's revenue for the quarter was up 35.4% compared to the same quarter last year. Research analysts expect that Brown & Brown, Inc. will post 4.51 EPS for the current fiscal year.

Brown & Brown Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 20th. Shareholders of record on Monday, May 11th will be given a dividend of $0.165 per share. This represents a $0.66 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Monday, May 11th. Brown & Brown's payout ratio is presently 21.22%.

Insider Buying and Selling

In other news, Director H Palmer Proctor, Jr. bought 2,000 shares of the firm's stock in a transaction on Tuesday, May 5th. The shares were bought at an average cost of $57.10 per share, for a total transaction of $114,200.00. Following the completion of the transaction, the director owned 47,621 shares in the company, valued at $2,719,159.10. This trade represents a 4.38% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 13.13% of the company's stock.

Institutional Trading of Brown & Brown

Large investors have recently made changes to their positions in the stock. Union Bancaire Privee UBP SA acquired a new stake in shares of Brown & Brown during the first quarter valued at $25,000. Cornerstone Planning Group LLC boosted its stake in shares of Brown & Brown by 423.1% during the third quarter. Cornerstone Planning Group LLC now owns 272 shares of the financial services provider's stock valued at $26,000 after acquiring an additional 220 shares during the last quarter. Basepoint Wealth LLC acquired a new stake in shares of Brown & Brown during the fourth quarter valued at $27,000. Darwin Wealth Management LLC acquired a new stake in shares of Brown & Brown during the second quarter valued at $30,000. Finally, DV Equities LLC purchased a new position in Brown & Brown during the fourth quarter worth about $33,000. 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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