Brown & Brown (NYSE:BRO) Sets New 1-Year Low - Here's What Happened

Key Points

• New 52-week low: Brown & Brown shares fell to a new 52-week low of $57.37 (last around $57.86) during Monday trading, while the MarketBeat consensus rating is "Hold" with a $83.00 target.
• Analysts trimming targets: Several firms including Bank of America, Morgan Stanley, Jefferies and RBC have lowered price targets recently, leaving most ratings at Hold/Equal Weight.
• Quarterly beat and dividend: Brown & Brown reported Q1 EPS of $1.39 (beating estimates) and revenue of $1.90B (up 35.4% YoY), and declared a $0.165 quarterly dividend (1.1% yield; ex-dividend May 11).

Brown & Brown, Inc. (NYSE:BRO - Get Free Report) shares reached a new 52-week low during mid-day trading on Monday . The company traded as low as $57.37 and last traded at $57.8640, with a volume of 1227 shares. The stock had previously closed at $57.63.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. Bank of America lowered their target price on Brown & Brown from $90.00 to $88.00 and set a "neutral" rating for the company in a research note on Tuesday, April 14th. Keefe, Bruyette & Woods lowered their target price on Brown & Brown from $74.00 to $72.00 and set a "market perform" rating for the company in a research note on Wednesday, April 29th. Morgan Stanley lowered their target price on Brown & Brown from $76.00 to $70.00 and set an "equal weight" rating for the company in a research note on Monday, April 6th. Jefferies Financial Group lowered their target price on Brown & Brown from $89.00 to $84.00 and set a "hold" rating for the company in a research note on Wednesday, January 28th. Finally, Royal Bank Of Canada lowered their target price on Brown & Brown from $76.00 to $72.00 and set a "sector perform" rating for the company in a research note on Wednesday, April 29th. Three research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $83.00.

Brown & Brown Stock Performance

The business has a 50 day moving average price of $67.60 and a two-hundred day moving average price of $74.90. The company has a market cap of $19.73 billion, a P/E ratio of 18.76, a price-to-earnings-growth ratio of 2.66 and a beta of 0.66. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.64 and a current ratio of 1.64.

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

Brown & Brown Dividend Announcement

The firm also recently declared 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. The ex-dividend date of this dividend is Monday, May 11th. This represents a $0.66 dividend on an annualized basis and a yield of 1.1%. Brown & Brown's dividend payout ratio is presently 21.22%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. ARQ Wealth Advisors LLC bought a new position in Brown & Brown during the 1st quarter valued at approximately $243,000. Carnegie Investment Counsel bought a new position in Brown & Brown during the 1st quarter valued at approximately $1,985,000. Fifth Third Bancorp raised its position in Brown & Brown by 472.9% during the 1st quarter. Fifth Third Bancorp now owns 65,788 shares of the financial services provider's stock valued at $4,290,000 after purchasing an additional 54,305 shares during the last quarter. Markel Group Inc. raised its position in Brown & Brown by 27.3% during the 1st quarter. Markel Group Inc. now owns 14,000 shares of the financial services provider's stock valued at $913,000 after purchasing an additional 3,000 shares during the last quarter. Finally, Equitable Trust Co. raised its position in Brown & Brown by 1.7% during the 1st quarter. Equitable Trust Co. now owns 10,901 shares of the financial services provider's stock valued at $711,000 after purchasing an additional 182 shares during the last quarter. Institutional investors 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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