JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Brown & Brown (NYSE:BRO) Stock

Key Points

• JPMorgan raised Brown & Brown’s price target to $80 from $78 while maintaining a neutral rating, implying approximately 12.18% potential upside from the reported share price.
• Analyst sentiment remains cautious: Brown & Brown has an average “Hold” rating and a consensus price target of $79.19, with four Buy, 13 Hold, and two Sell ratings.
• Shares traded at $71.31, while the company’s latest quarterly results slightly missed expectations, reporting $1.07 in adjusted EPS versus $1.08 expected and $1.65 billion in revenue versus $1.71 billion forecast.

Brown & Brown (NYSE:BRO - Get Free Report) had its price target boosted by analysts at JPMorgan Chase & Co. from $78.00 to $80.00 in a research note issued on Monday,Benzinga reports. The firm currently has a "neutral" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 12.18% from the company's current price.

A number of other equities research analysts have also recently issued reports on the company. Barclays boosted their price objective on Brown & Brown from $72.00 to $76.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 7th. Keefe, Bruyette & Woods lifted their price target on Brown & Brown from $72.00 to $74.00 and gave the stock a "market perform" rating in a report on Wednesday, July 8th. UBS Group reissued a "neutral" rating and set a $73.00 price target (up from $65.00) on shares of Brown & Brown in a report on Wednesday, July 8th. Bank of America reduced their price target 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. Finally, BMO Capital Markets increased their price objective on Brown & Brown from $73.00 to $74.00 and gave the stock a "market perform" rating in a research report on Wednesday, July 29th. Four equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Brown & Brown presently has an average rating of "Hold" and an average target price of $79.19.

Brown & Brown Stock Performance

Shares of BRO stock traded up $0.91 during midday trading on Monday, hitting $71.31. 667,052 shares of the company were exchanged, compared to its average volume of 3,250,792. The firm has a market capitalization of $23.86 billion, a P/E ratio of 22.52, a PEG ratio of 3.52 and a beta of 0.59. The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.11 and a current ratio of 2.11. The firm's 50 day moving average price is $63.65 and its two-hundred day moving average price is $66.37. Brown & Brown has a 52 week low of $53.81 and a 52 week high of $98.30.

Brown & Brown (NYSE:BRO - Get Free Report) last announced its quarterly earnings results on Monday, July 27th. The financial services provider reported $1.07 EPS for the quarter, missing analysts' consensus estimates of $1.08 by ($0.01). The company had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.71 billion. Brown & Brown had a net margin of 17.75% and a return on equity of 13.17%. The firm's quarterly revenue was up 30.4% on a year-over-year basis. During the same quarter last year, the company posted $1.03 EPS. As a group, equities research analysts anticipate that Brown & Brown will post 4.49 earnings per share for the current year.

Insider Activity

In other Brown & Brown news, Director H Palmer Proctor, Jr. bought 2,000 shares of the business's stock in a transaction on Tuesday, May 5th. The stock was purchased at an average cost of $57.10 per share, for a total transaction of $114,200.00. Following the completion of the purchase, the director directly owned 47,621 shares of the company's stock, valued at approximately $2,719,159.10. This trade represents a 4.38% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 13.13% of the company's stock.

Institutional Investors Weigh In On Brown & Brown

Hedge funds and other institutional investors have recently bought and sold shares of the company. Union Bancaire Privee UBP SA bought a new stake in Brown & Brown during the 1st quarter worth approximately $25,000. Basepoint Wealth LLC acquired a new stake in Brown & Brown during the fourth quarter worth approximately $27,000. Darwin Wealth Management LLC bought a new stake in shares of Brown & Brown in the 2nd quarter valued at $30,000. DV Equities LLC bought a new stake in Brown & Brown in the fourth quarter valued at $33,000. Finally, Allied Private Wealth LLC bought a new stake in Brown & Brown in the 2nd quarter valued at about $35,000. 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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