Wells Fargo & Company Has Lowered Expectations for Brown & Brown (NYSE:BRO) Stock Price

Key Points

• Wells Fargo cut its price target on Brown & Brown from $72 to $69 and kept an "equal weight" rating, while other analysts have trimmed targets; the consensus from MarketBeat remains a "Hold" with an average target of $83.27.
• Brown & Brown reported Q1 revenue up 35.4% and adjusted EPS of $1.39 (beating estimates), but organic growth was flat; the board also declared a $0.165 quarterly dividend.
• The stock traded down (~$61.82) and is near its 52-week low, with analysts flagging integration costs, margin pressure and valuation concerns as key near-term risks.

Brown & Brown (NYSE:BRO - Get Free Report) had its price target lowered by analysts at Wells Fargo & Company from $72.00 to $69.00 in a report issued on Wednesday,Benzinga reports. The firm currently has an "equal weight" rating on the financial services provider's stock. Wells Fargo & Company's price objective points to a potential upside of 11.61% from the stock's previous close.

Other research analysts also recently issued research reports about the company. Mizuho reduced their price target on Brown & Brown from $85.00 to $84.00 and set an "outperform" rating on the stock in a report on Monday, April 13th. Jefferies Financial Group cut 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. Barclays reduced their target price on Brown & Brown from $80.00 to $72.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 8th. Morgan Stanley decreased their target price on Brown & Brown from $76.00 to $70.00 and set an "equal weight" rating for the company in a report on Monday, April 6th. Finally, Truist Financial dropped their price target on Brown & Brown from $100.00 to $90.00 and set a "buy" rating for the company in a research note on Wednesday. Three analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $83.27.

Brown & Brown Trading Down 2.1%

Shares of BRO traded down $1.32 during mid-day trading on Wednesday, reaching $61.82. The company's stock had a trading volume of 634,699 shares, compared to its average volume of 3,240,231. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 0.55. Brown & Brown has a 52 week low of $61.65 and a 52 week high of $113.83. The company's fifty day moving average price is $67.94 and its two-hundred day moving average price is $75.38. The stock has a market cap of $21.05 billion, a PE ratio of 19.92, a P/E/G ratio of 1.80 and a beta of 0.83.

Brown & Brown (NYSE:BRO - Get Free Report) last issued its earnings results on Monday, April 27th. The financial services provider reported $1.39 EPS for the quarter, topping analysts' consensus estimates of $1.36 by $0.03. Brown & Brown had a net margin of 17.94% and a return on equity of 13.05%. The company had revenue of $1.90 billion for the quarter, compared to analysts' expectations of $1.92 billion. During the same quarter last year, the company earned $1.29 EPS. The firm's revenue was up 35.4% compared to the same quarter last year. On average, analysts predict that Brown & Brown will post 4.54 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Brown & Brown

Several large investors have recently bought and sold shares of the business. ICONIQ Capital LLC boosted its holdings in shares of Brown & Brown by 5.4% during the 2nd quarter. ICONIQ Capital LLC now owns 2,110 shares of the financial services provider's stock valued at $234,000 after acquiring an additional 109 shares during the last quarter. Zacks Investment Management raised its holdings in shares of 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 purchasing an additional 125 shares during the last quarter. Freedom Day Solutions LLC lifted its position in Brown & Brown by 0.7% during the third quarter. Freedom Day Solutions LLC now owns 18,632 shares of the financial services provider's stock valued at $1,747,000 after purchasing an additional 129 shares during the period. Private Trust Co. NA lifted its position 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 purchasing an additional 133 shares during the period. Finally, Moment Partners LLC boosted its holdings in 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 last quarter. 71.01% of the stock is currently owned by institutional investors.

Brown & Brown News Roundup

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.

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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