Keefe, Bruyette & Woods Has Lowered Expectations for Brown & Brown (NYSE:BRO) Stock Price

Key Points

• Keefe, Bruyette & Woods cut its price target for Brown & Brown to $72 and maintained a "market perform" rating, implying roughly a 16% upside from the stock's recent close.
• Multiple major brokers have trimmed targets recently and the analyst consensus is a Hold with a consensus target of $83.47, reflecting cautious sentiment across the sell side.
• Brown & Brown's latest quarter showed revenues up 35.4% to $1.90B and adjusted EPS beat estimates at $1.39, but organic revenue was essentially flat, highlighting that growth was largely acquisition-driven.

Brown & Brown (NYSE:BRO - Get Free Report) had its target price reduced by equities research analysts at Keefe, Bruyette & Woods from $74.00 to $72.00 in a report released on Wednesday,Benzinga reports. The firm currently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' target price indicates a potential upside of 15.94% from the company's previous close.

A number of other equities research analysts have also weighed in on the company. Jefferies Financial Group reduced their price objective on Brown & Brown from $89.00 to $84.00 and set a "hold" rating on the stock in a research report on Wednesday, January 28th. The Goldman Sachs Group reduced their price objective on Brown & Brown from $82.00 to $73.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 8th. Truist Financial reduced their price objective on Brown & Brown from $100.00 to $90.00 and set a "buy" rating on the stock in a research report on Wednesday. Mizuho reduced their price objective on Brown & Brown from $85.00 to $84.00 and set an "outperform" rating on the stock in a research report on Monday, April 13th. Finally, JPMorgan Chase & Co. reduced their price objective on Brown & Brown from $91.00 to $85.00 and set a "neutral" rating on the stock in a research report on Thursday, April 9th. Three equities research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $83.47.

Brown & Brown Price Performance

BRO stock traded down $1.04 during midday trading on Wednesday, reaching $62.10. 314,521 shares of the stock were exchanged, compared to its average volume of 3,235,802. The stock has a market capitalization of $21.14 billion, a PE ratio of 19.91, a P/E/G ratio of 1.80 and a beta of 0.83. Brown & Brown has a 52 week low of $61.65 and a 52 week high of $113.83. 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 company has a fifty day moving average price of $67.94 and a 200 day moving average price of $75.38.

Brown & Brown (NYSE:BRO - Get Free Report) last issued its quarterly earnings data on Monday, April 27th. The financial services provider reported $1.39 earnings per share for the quarter, topping analysts' consensus estimates of $1.36 by $0.03. The business had revenue of $1.90 billion for the quarter, compared to analyst estimates of $1.92 billion. Brown & Brown had a return on equity of 13.05% 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 previous year, the company posted $1.29 EPS. As a group, analysts expect that Brown & Brown will post 4.54 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Capital World Investors boosted its position in Brown & Brown by 81.1% during the third quarter. Capital World Investors now owns 17,479,389 shares of the financial services provider's stock valued at $1,639,392,000 after acquiring an additional 7,827,992 shares during the last quarter. Norges Bank acquired a new position in shares of Brown & Brown in the 4th quarter valued at about $516,837,000. Capital International Investors acquired a new position in shares of Brown & Brown in the 4th quarter valued at about $371,654,000. Van Lanschot Kempen Investment Management N.V. lifted its stake in shares of Brown & Brown by 132.8% in the 4th quarter. Van Lanschot Kempen Investment Management N.V. now owns 4,538,584 shares of the financial services provider's stock valued at $361,725,000 after purchasing an additional 2,589,048 shares during the period. Finally, Principal Financial Group Inc. lifted its stake in shares of Brown & Brown by 13.4% in the 3rd quarter. Principal Financial Group Inc. now owns 15,416,190 shares of the financial services provider's stock valued at $1,445,888,000 after purchasing an additional 1,821,229 shares during the period. 71.01% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Brown & Brown

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

• Positive Sentiment: Revenue and adjusted earnings beat/strength — Total revenues rose 35.4% to ~$1.9B and Diluted Net Income Per Share — Adjusted was $1.39 (above consensus), driven by commissions, investment income and acquisition contributions. Read More.
• Positive Sentiment: Dividend declared — Board approved a quarterly cash dividend of $0.165 per share (payable May 20), which supports income investors. Read More.
• Neutral Sentiment: Organic growth flat — Organic revenue was essentially 0.0% year‑over‑year, indicating the top‑line lift was largely acquisition‑driven rather than underlying sales growth. Read More.
• Neutral Sentiment: GAAP vs. adjusted earnings divergence — GAAP diluted EPS ($1.06) was lower year‑over‑year while adjusted EPS (+7.8% y/y) topped estimates, creating headline confusion for short‑term traders. Read More.
• Neutral Sentiment: Earnings call/transcript available for details on integration and outlook — read the transcript for management commentary on Accession integration, contingents and expense outlook. Read More.
• Negative Sentiment: Analyst caution / valuation concern — A Seeking Alpha write‑up argues BRO is overvalued at current levels, cuts the price target to $58 and assigns a Hold given slowing organic growth and sector headwinds (notably flood insurance exposure). Read More.
• Negative Sentiment: Costs, margin and integration headwinds — Coverage highlights rising operating expenses, acquisition/integration costs and some margin pressure despite higher EBITDAC; those items and additional acquisition‑related debt/earn‑out payments amplify near‑term risk. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.