Shares of Brown & Brown, Inc. (NYSE:BRO) have received an average rating of “Hold” from eighteen research firms currently covering the firm, according to data from MarketBeat. Among these analysts, fourteen have recommended a hold position, while four have issued a buy recommendation, indicating a mixed outlook for the company’s stock.
The average 12-month price target set by these analysts is approximately $90.29. Recent commentary from various equities analysts has provided further insights into the company’s performance. On December 29, 2023, Weiss Ratings reaffirmed a “hold (c)” rating for Brown & Brown shares. On November 20, 2023, Wolfe Research commenced coverage of the stock, assigning it a “peer perform” rating.
On January 29, 2024, UBS Group adjusted its rating from a “neutral” stance to set a target price of $81.00, down from $90.00. Additionally, Keefe, Bruyette & Woods upgraded Brown & Brown from an “underperform” to a “market perform” rating, revising their price objective from $80.00 to $73.00. Jefferies Financial Group also lowered their target price from $89.00 to $84.00 while maintaining a “hold” rating.
Recent Earnings Performance and Dividend Announcement
Brown & Brown’s most recent quarterly earnings report, released on January 26, 2024, indicated a $0.93 earnings per share (EPS), surpassing analysts’ expectations of $0.91 by $0.02. The company achieved a net margin of 17.84% and a return on equity of 12.93%. Revenue for the quarter amounted to $1.61 billion, slightly below the consensus estimate of $1.65 billion. In comparison to the same quarter the previous year, the company reported a notable increase, with a 35.7% rise in quarterly revenue.
In addition to its earnings performance, Brown & Brown declared a quarterly dividend of $0.165, which was paid on February 11, 2024, to shareholders of record as of February 4, 2024. This dividend translates to an annualized payout of $0.66 and a dividend yield of 1.0%. The company maintains a dividend payout ratio (DPR) of 20.63%.
Institutional Investor Activity
Recent shifts in institutional investor holdings have also been notable. AQR Capital Management LLC increased its stake in Brown & Brown by 38.3% during the first quarter, now holding 33,444 shares valued at $4.13 million after acquiring an additional 9,264 shares. Focus Partners Wealth raised its position in the company by 5.2%, owning 11,149 shares worth $1.39 million following the acquisition of 547 shares.
Moreover, Assetmark Inc. significantly boosted its holdings by 189.8% in the second quarter, now possessing 623 shares valued at $69,000. Wedbush Securities Inc. and AGF Management Ltd. also increased their stakes, with Wedbush raising its holdings by 7.9% and AGF increasing by 17.3%. Overall, institutional investors and hedge funds collectively own 71.01% of Brown & Brown’s stock.
Brown & Brown, Inc. operates as a professional insurance brokerage and risk advisory firm, offering a diverse array of services including property and casualty, employee benefits, and specialty insurance products. The company caters to commercial, public, and individual clients, focusing on insurance program design, claims management, and risk management consulting.
As Brown & Brown continues to navigate a dynamic financial landscape, the attention from analysts and institutional investors underscores the importance of its performance in the insurance sector.
