Brown & Brown (NYSE:BRO) Given New $87.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods has lowered its price target for Brown & Brown (NYSE:BRO) stock from $104.00 to $87.00, indicating a potential downside of 6.54% from current levels and assigning an "underperform" rating.
• Other analysts have mixed views, with Wells Fargo reducing its target to $104.00 while Bank of America upgraded its rating to "buy" with a new target of $130.00.
• Brown & Brown reported a 9.1% year-over-year revenue increase with a net margin of 19.89%, showing resilience despite the recent downgrade in stock projections.

Brown & Brown (NYSE:BRO - Get Free Report) had its price objective lowered by Keefe, Bruyette & Woods from $104.00 to $87.00 in a report released on Thursday,Benzinga reports. The firm currently has an "underperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' target price would indicate a potential downside of 5.66% from the company's current price.

Other research analysts also recently issued research reports about the company. Barclays reduced their target price on Brown & Brown from $111.00 to $108.00 and set an "equal weight" rating on the stock in a report on Tuesday. Truist Financial set a $120.00 target price on Brown & Brown in a report on Wednesday. BMO Capital Markets reduced their target price on Brown & Brown from $122.00 to $106.00 and set an "outperform" rating on the stock in a report on Wednesday. The Goldman Sachs Group downgraded Brown & Brown from a "buy" rating to a "neutral" rating and cut their price target for the stock from $126.00 to $119.00 in a report on Tuesday, May 13th. Finally, Wells Fargo & Company cut their price target on Brown & Brown from $127.00 to $104.00 and set an "overweight" rating on the stock in a report on Wednesday. One analyst has rated the stock with a sell rating, seven have issued a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $114.25.

Brown & Brown Stock Up 0.9%

NYSE BRO traded up $0.85 during mid-day trading on Thursday, reaching $92.22. 3,540,428 shares of the company's stock traded hands, compared to its average volume of 3,460,361. Brown & Brown has a 1-year low of $90.55 and a 1-year high of $125.68. The company has a fifty day simple moving average of $106.64 and a 200-day simple moving average of $111.19. The company has a current ratio of 6.72, a quick ratio of 2.52 and a debt-to-equity ratio of 0.64. The company has a market cap of $30.42 billion, a price-to-earnings ratio of 26.58, a P/E/G ratio of 2.06 and a beta of 0.82.

Brown & Brown (NYSE:BRO - Get Free Report) last issued its quarterly earnings data on Monday, July 28th. The financial services provider reported $1.03 earnings per share for the quarter, beating analysts' consensus estimates of $0.99 by $0.04. Brown & Brown had a return on equity of 15.10% and a net margin of 19.89%. The firm had revenue of $1.29 billion during the quarter, compared to analyst estimates of $1.28 billion. During the same quarter last year, the firm earned $0.93 EPS. Brown & Brown's quarterly revenue was up 9.1% on a year-over-year basis. As a group, equities research analysts expect that Brown & Brown will post 4.18 EPS for the current year.

Hedge Funds Weigh In On Brown & Brown

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. grew its holdings in shares of Brown & Brown by 1.9% in the 1st quarter. Vanguard Group Inc. now owns 30,501,119 shares of the financial services provider's stock worth $3,794,339,000 after acquiring an additional 560,980 shares during the last quarter. Principal Financial Group Inc. grew its stake in Brown & Brown by 0.3% in the first quarter. Principal Financial Group Inc. now owns 12,940,046 shares of the financial services provider's stock valued at $1,609,742,000 after purchasing an additional 38,078 shares in the last quarter. Parnassus Investments LLC purchased a new position in Brown & Brown in the first quarter valued at about $899,139,000. Geode Capital Management LLC boosted its stake in shares of Brown & Brown by 2.0% during the 4th quarter. Geode Capital Management LLC now owns 6,099,649 shares of the financial services provider's stock worth $620,737,000 after acquiring an additional 118,569 shares in the last quarter. Finally, Capital World Investors boosted its stake in shares of Brown & Brown by 15.6% during the 4th quarter. Capital World Investors now owns 4,195,681 shares of the financial services provider's stock worth $428,043,000 after acquiring an additional 566,116 shares in the last quarter. 71.01% of the stock is currently owned by institutional investors and hedge funds.

About Brown & Brown

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.