Brown & Brown, Inc. $BRO Shares Sold by Cwm LLC

Key Points

• Cwm LLC cut its Brown & Brown stake by 83.7% in the fourth quarter, selling 52,320 shares and leaving it with 10,225 shares valued at about $815,000.
• Brown & Brown posted Q1 revenue of $1.90 billion (+35.4% YoY) and adjusted EPS of $1.39 (beat), but reported flat organic revenue growth and a lower GAAP EPS of $1.06, highlighting acquisition-driven scale and some accounting-related volatility.
• The board declared a quarterly dividend of $0.165 (annualized $0.66, ~1.0% yield; ex-dividend May 11), while analysts maintain an average "Hold" rating with a consensus price target of $84.27.

Cwm LLC decreased its stake in Brown & Brown, Inc. (NYSE:BRO - Free Report) by 83.7% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 10,225 shares of the financial services provider's stock after selling 52,320 shares during the quarter. Cwm LLC's holdings in Brown & Brown were worth $815,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of the stock. KBC Group NV grew its position in shares of Brown & Brown by 0.7% in the fourth quarter. KBC Group NV now owns 45,146 shares of the financial services provider's stock valued at $3,598,000 after purchasing an additional 325 shares during the period. Patton Fund Management Inc. grew its position in shares of Brown & Brown by 14.9% in the fourth quarter. Patton Fund Management Inc. now owns 2,824 shares of the financial services provider's stock valued at $225,000 after purchasing an additional 366 shares during the period. Financial Enhancement Group LLC grew its position in shares of Brown & Brown by 3.3% in the fourth quarter. Financial Enhancement Group LLC now owns 8,708 shares of the financial services provider's stock valued at $680,000 after purchasing an additional 280 shares during the period. Westbourne Investment Advisors Inc. grew its position in shares of Brown & Brown by 6.5% in the fourth quarter. Westbourne Investment Advisors Inc. now owns 63,849 shares of the financial services provider's stock valued at $5,089,000 after purchasing an additional 3,885 shares during the period. Finally, Steph & Co. grew its position in shares of Brown & Brown by 37.7% in the fourth quarter. Steph & Co. now owns 2,421 shares of the financial services provider's stock valued at $193,000 after purchasing an additional 663 shares during the period. Institutional investors and hedge funds own 71.01% of the company's stock.

Brown & Brown Stock Performance

NYSE:BRO opened at $63.02 on Wednesday. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.66 and a quick ratio of 1.66. The firm has a market capitalization of $21.45 billion, a price-to-earnings ratio of 20.26, a PEG ratio of 1.80 and a beta of 0.83. The company's 50-day moving average is $67.94 and its two-hundred day moving average is $75.38. Brown & Brown, Inc. has a 1-year low of $61.65 and a 1-year high of $113.83.

Brown & Brown (NYSE:BRO - Get Free Report) last posted its earnings results on Monday, April 27th. The financial services provider reported $1.39 earnings per share for the quarter, beating the consensus estimate of $1.36 by $0.03. The company had revenue of $1.90 billion for the quarter, compared to analyst estimates of $1.92 billion. Brown & Brown had a net margin of 17.94% and a return on equity of 13.05%. Brown & Brown's revenue was up 35.4% on a year-over-year basis. During the same period in the previous year, the business posted $1.29 EPS. Analysts forecast that Brown & Brown, Inc. will post 4.54 EPS for the current 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 issued a $0.165 dividend. This represents a $0.66 annualized dividend and a yield of 1.0%. The ex-dividend date is Monday, May 11th. Brown & Brown's payout ratio is presently 20.63%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on BRO shares. Jefferies Financial Group lowered their price target on shares of Brown & Brown from $89.00 to $84.00 and set a "hold" rating on the stock in a research report on Wednesday, January 28th. Keefe, Bruyette & Woods boosted their price target on shares of Brown & Brown from $73.00 to $74.00 and gave the stock a "market perform" rating in a research report on Tuesday, April 7th. Mizuho lowered their price target on shares of Brown & Brown from $85.00 to $84.00 and set an "outperform" rating on the stock in a research report on Monday, April 13th. Morgan Stanley lowered their price target on shares of 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. Finally, Royal Bank Of Canada started coverage on shares of Brown & Brown in a research report on Tuesday, March 17th. They set a "sector perform" rating and a $76.00 price target on the stock. Three investment analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $84.27.

Brown & Brown News Summary

Here are the key news stories impacting Brown & Brown this week:

• Positive Sentiment: Revenue and operating margin strength: total Q1 revenue rose to ~$1.9B (+35.4% year‑over‑year) and adjusted EBITDAC expanded to $731M (margin ~38.5%), showing solid scale from acquisitions and underlying operating leverage. Read More.
• Positive Sentiment: Adjusted EPS and shareholder return: Diluted net income per share — adjusted was $1.39 (up ~7.8% year/yr) and the board declared a quarterly cash dividend of $0.165. These items support near‑term earnings quality and cash return to holders. Read More.
• Neutral Sentiment: Investor materials available: management hosted an earnings presentation and call; the transcript and slide deck provide detail on acquisition impacts, contingency accounting and integration plans for Accession. Useful for digging into assumptions behind adjusted metrics. Read More.
• Negative Sentiment: Flat organic revenue growth: core (organic) commissions and fees were essentially flat (0.0% organic revenue growth; organic with contingents +2.2%), signaling that underlying new business growth outside acquisitions is weak — a key long‑term growth concern for investors. Read More.
• Negative Sentiment: GAAP EPS and accounting noise created confusion: GAAP diluted EPS fell to $1.06 (down ~7.8% y/y) while adjusted EPS was higher — the divergence (earnings adjustments, escrow mark‑to‑market, acquisition/integration costs) likely contributed to investor selling and volatility. Read More.
• Negative Sentiment: Balance sheet and expense items tied to acquisitions: acquisition-related charges, mark‑to‑market escrow effects and higher liabilities (and recent treasury stock purchases) raise leverage and near‑term cash‑flow questions tied to the Accession deal integration. That raises execution risk despite headline scale. Read More.

Brown & Brown Company Profile

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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