DOWLING & PARTN Comments on Brown & Brown FY2026 Earnings

Key Points

• DOWLING & PARTN raised its FY2026 EPS estimate for Brown & Brown to $4.65, above the broader consensus of $4.50 per share. It also projected FY2027 EPS of $5.10.
• Brown & Brown’s latest quarterly results beat expectations, with $1.39 EPS versus the $1.36 consensus and revenue of $1.90 billion, up 35.4% year over year. The company also posted solid margins, including a 12.94% return on equity and a 17.94% net margin.
• Despite the earnings beat, Wall Street remains cautious: the stock has an average analyst rating of “Hold” and an average target price of $79.44. Brown & Brown also recently paid a quarterly dividend of $0.165 per share, equal to a 1.2% annual yield.

Brown & Brown, Inc. (NYSE:BRO - Free Report) - DOWLING & PARTN issued their FY2026 earnings per share (EPS) estimates for Brown & Brown in a research report issued to clients and investors on Wednesday, May 20th. DOWLING & PARTN analyst J. Christiana expects that the financial services provider will post earnings per share of $4.65 for the year. The consensus estimate for Brown & Brown's current full-year earnings is $4.50 per share. DOWLING & PARTN also issued estimates for Brown & Brown's FY2027 earnings at $5.10 EPS.

Other analysts have also issued reports about the company. BMO Capital Markets cut their price objective on Brown & Brown from $88.00 to $81.00 and set a "market perform" rating for the company in a report on Thursday, January 29th. Jefferies Financial Group cut their price objective on Brown & Brown from $89.00 to $84.00 and set a "hold" rating for the company in a report on Wednesday, January 28th. Keefe, Bruyette & Woods cut their price objective on Brown & Brown from $74.00 to $72.00 and set a "market perform" rating for the company in a report on Wednesday, April 29th. Truist Financial cut their price objective on Brown & Brown from $100.00 to $90.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Finally, Mizuho cut their price objective on Brown & Brown from $85.00 to $84.00 and set an "outperform" rating for the company in a report on Monday, April 13th. Five research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Brown & Brown currently has an average rating of "Hold" and an average target price of $79.44.

Brown & Brown Price Performance

Shares of NYSE:BRO opened at $56.78 on Thursday. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.52. Brown & Brown has a 1 year low of $53.81 and a 1 year high of $113.83. The business has a fifty day simple moving average of $63.01 and a 200 day simple moving average of $71.63. The firm has a market cap of $19.25 billion, a price-to-earnings ratio of 18.26, a P/E/G ratio of 2.64 and a beta of 0.66.

Brown & Brown (NYSE:BRO - Get Free Report) last announced its quarterly earnings data on Monday, April 27th. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.03. Brown & Brown had a return on equity of 12.94% and a net margin of 17.94%.The business had revenue of $1.90 billion during the quarter, compared to analyst estimates of $1.89 billion. During the same period last year, the company earned $1.29 earnings per share. Brown & Brown's quarterly revenue was up 35.4% compared to the same quarter last year.

Brown & Brown Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 20th. Shareholders of record on Monday, May 11th were issued a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a yield of 1.2%. The ex-dividend date was Monday, May 11th. Brown & Brown's dividend payout ratio (DPR) is 21.22%.

Insiders Place Their Bets

In related news, Director H Palmer Proctor, Jr. bought 2,000 shares of the business'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 acquisition, the director directly owned 47,621 shares in the company, 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 filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 13.13% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Brown & Brown

Several institutional investors have recently bought and sold shares of the stock. ICONIQ Capital LLC raised its holdings in Brown & Brown by 5.4% during the second quarter. ICONIQ Capital LLC now owns 2,110 shares of the financial services provider's stock valued at $234,000 after buying an additional 109 shares in the last quarter. Zacks Investment Management raised its holdings in Brown & Brown by 0.7% during the third quarter. Zacks Investment Management now owns 17,854 shares of the financial services provider's stock valued at $1,675,000 after buying an additional 125 shares in the last quarter. Private Trust Co. NA raised its holdings in Brown & Brown by 13.1% during the fourth quarter. Private Trust Co. NA now owns 1,147 shares of the financial services provider's stock valued at $91,000 after buying an additional 133 shares in the last quarter. Moment Partners LLC increased its stake in shares of Brown & Brown by 3.0% in the third quarter. Moment Partners LLC now owns 4,632 shares of the financial services provider's stock worth $434,000 after purchasing an additional 136 shares during the period. Finally, Moors & Cabot Inc. increased its stake in shares of Brown & Brown by 2.1% in the third quarter. Moors & Cabot Inc. now owns 6,805 shares of the financial services provider's stock worth $638,000 after purchasing an additional 142 shares during the period. 71.01% of the stock is currently owned by institutional investors.

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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