Brown & Brown (NYSE:BRO) Shares Gap Down on Disappointing Earnings

Shares of Brown & Brown, Inc. (NYSE:BRO - Get Free Report) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $114.88, but opened at $107.68. Brown & Brown shares last traded at $106.82, with a volume of 378,521 shares trading hands.

The financial services provider reported $1.29 EPS for the quarter, missing the consensus estimate of $1.30 by ($0.01). The firm had revenue of $1.40 billion for the quarter, compared to analysts' expectations of $1.41 billion. Brown & Brown had a return on equity of 17.81% and a net margin of 20.68%. Brown & Brown's quarterly revenue was up 11.6% on a year-over-year basis. During the same quarter last year, the firm posted $1.14 earnings per share.

Brown & Brown Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 21st. Shareholders of record on Monday, May 12th will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.54%. The ex-dividend date of this dividend is Monday, May 12th. Brown & Brown's dividend payout ratio (DPR) is currently 16.71%.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on BRO shares. Royal Bank of Canada upped their price target on Brown & Brown from $118.00 to $120.00 and gave the company an "outperform" rating in a research note on Wednesday, January 29th. Jefferies Financial Group lifted their price target on shares of Brown & Brown from $105.00 to $109.00 and gave the company a "hold" rating in a research report on Friday, April 11th. UBS Group upped their price objective on shares of Brown & Brown from $110.00 to $120.00 and gave the stock a "neutral" rating in a report on Wednesday, April 9th. Barclays lifted their target price on shares of Brown & Brown from $119.00 to $121.00 and gave the company an "equal weight" rating in a report on Friday, April 11th. Finally, Morgan Stanley restated an "equal weight" rating and set a $128.00 price target on shares of Brown & Brown in a research note on Tuesday, March 25th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $116.83.

Institutional Trading of Brown & Brown

Institutional investors and hedge funds have recently bought and sold shares of the business. Phillips Wealth Planners LLC raised its position in Brown & Brown by 3.4% during the 1st quarter. Phillips Wealth Planners LLC now owns 2,659 shares of the financial services provider's stock worth $316,000 after buying an additional 88 shares during the last quarter. SBI Securities Co. Ltd. raised its holdings in Brown & Brown by 26.8% during the first 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 in the last quarter. Gateway Investment Advisers LLC lifted its position in Brown & Brown by 2.3% in the first quarter. Gateway Investment Advisers LLC now owns 4,312 shares of the financial services provider's stock valued at $536,000 after purchasing an additional 97 shares during the period. Journey Strategic Wealth LLC boosted its holdings in Brown & Brown by 2.3% in the 4th quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider's stock valued at $458,000 after purchasing an additional 99 shares in the last quarter. Finally, CWA Asset Management Group LLC increased its position in Brown & Brown by 3.7% during the 4th quarter. CWA Asset Management Group LLC now owns 2,916 shares of the financial services provider's stock worth $297,000 after purchasing an additional 103 shares during the period. Hedge funds and other institutional investors own 71.01% of the company's stock.

Brown & Brown Trading Up 1.4 %

The company has a current ratio of 1.79, a quick ratio of 1.79 and a debt-to-equity ratio of 0.56. The business has a 50 day moving average price of $117.83 and a 200-day moving average price of $110.66. The firm has a market capitalization of $31.70 billion, a PE ratio of 31.97, a P/E/G ratio of 2.93 and a beta of 0.75.

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.