Brown & Brown (NYSE:BRO) Releases Earnings Results

Key Points

• Brown & Brown missed quarterly expectations: The insurance broker reported EPS of $1.07, below the $1.08 consensus, while revenue of $1.65 billion also fell short of the $1.71 billion estimate.
• Shares rose 2.9% to $69.63 following the results. Analysts maintain a consensus “Hold” rating, with an average price target of $78.62.
• The company declared a quarterly dividend of $0.165 per share, equivalent to $0.66 annually and a 0.9% yield; a director also purchased 2,000 shares worth approximately $114,200.

Brown & Brown (NYSE:BRO - Get Free Report) posted its quarterly earnings results on Monday. The financial services provider reported $1.07 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.08 by ($0.01), FiscalAI reports. The business had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.71 billion. Brown & Brown had a return on equity of 12.94% and a net margin of 17.94%.

Brown & Brown Stock Up 2.9%

NYSE BRO traded up $1.97 during mid-day trading on Monday, hitting $69.63. The company's stock had a trading volume of 2,780,187 shares, compared to its average volume of 3,252,780. The company's 50 day simple moving average is $62.28 and its 200 day simple moving average is $66.65. Brown & Brown has a twelve month low of $53.81 and a twelve month high of $104.10. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.52. The firm has a market capitalization of $23.60 billion, a price-to-earnings ratio of 22.39, a PEG ratio of 3.12 and a beta of 0.60.

Brown & Brown Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Wednesday, August 12th will be issued a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, August 12th. Brown & Brown's dividend payout ratio (DPR) is currently 21.22%.

Insiders Place Their Bets

In other Brown & Brown news, Director H Palmer Proctor, Jr. acquired 2,000 shares of the company's stock in a transaction on Tuesday, May 5th. The shares were purchased at an average cost of $57.10 per share, with a total value of $114,200.00. Following the completion of the purchase, the director owned 47,621 shares of the company's stock, valued at approximately $2,719,159.10. This represents a 4.38% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 13.13% of the company's stock.

Hedge Funds Weigh In On Brown & Brown

A number of hedge funds have recently added to or reduced their stakes in BRO. Darwin Wealth Management LLC bought a new position in shares of Brown & Brown in the second quarter valued at approximately $30,000. DV Equities LLC bought a new position in shares of Brown & Brown during the 4th quarter worth approximately $33,000. Caitong International Asset Management Co. Ltd bought a new stake in Brown & Brown during the third quarter worth $76,000. MUFG Securities EMEA plc bought a new position in Brown & Brown in the 2nd quarter valued at $92,000. Finally, Headlands Technologies LLC purchased a new stake in shares of Brown & Brown during the 2nd quarter valued at $100,000. Institutional investors and hedge funds own 71.01% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Bank of America dropped their target price on shares of Brown & Brown from $90.00 to $88.00 and set a "neutral" rating on the stock in a research report on Tuesday, April 14th. Citigroup reaffirmed an "outperform" rating on shares of Brown & Brown in a research note on Friday, July 10th. Royal Bank Of Canada dropped their price objective on shares of Brown & Brown from $76.00 to $72.00 and set a "sector perform" rating on the stock in a report on Wednesday, April 29th. Wells Fargo & Company cut their price objective on shares of Brown & Brown from $69.00 to $68.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 9th. Finally, Truist Financial reduced their target price on Brown & Brown from $100.00 to $90.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. Five equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Brown & Brown currently has a consensus rating of "Hold" and a consensus target price of $78.62.

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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