Brown & Brown (NYSE:BRO) Shares Gap Down on Disappointing Earnings

Brown & Brown, Inc. (NYSE:BRO) shares gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $114.88, but opened at $107.68. Brown & Brown shares last traded at $106.82, with a volume of 378,521 shares traded.

The financial services provider reported $1.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.30 by ($0.01). Brown & Brown had a net margin of 20.68% and a return on equity of 17.81%. The firm had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.41 billion. The business’s revenue was up 11.6% compared to the same quarter last year. During the same period last year, the firm posted $1.14 EPS.

Brown & Brown Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 21st. Stockholders of record on Monday, May 12th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.56%. Brown & Brown’s dividend payout ratio is presently 17.34%.

Analysts Set New Price Targets

Several brokerages have weighed in on BRO. Bank of America lifted their target price on Brown & Brown from $116.00 to $117.00 and gave the company a “neutral” rating in a research note on Tuesday, January 28th. Wells Fargo & Company upped their price target on shares of Brown & Brown from $115.00 to $125.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 29th. Morgan Stanley reissued an “equal weight” rating and set a $128.00 target price on shares of Brown & Brown in a report on Tuesday, March 25th. Jefferies Financial Group increased their price target on Brown & Brown from $105.00 to $109.00 and gave the company a “hold” rating in a research note on Friday, April 11th. Finally, Barclays upped their price objective on Brown & Brown from $119.00 to $121.00 and gave the company an “equal weight” rating in a report on Friday, April 11th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $117.50.

Institutional Investors Weigh In On Brown & Brown

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in BRO. Phillips Wealth Planners LLC boosted its position in Brown & Brown by 3.4% during the first quarter. Phillips Wealth Planners LLC now owns 2,659 shares of the financial services provider’s stock valued at $316,000 after purchasing an additional 88 shares during the last quarter. Gateway Investment Advisers LLC increased its holdings in Brown & Brown by 2.3% in the first quarter. Gateway Investment Advisers LLC now owns 4,312 shares of the financial services provider’s stock worth $536,000 after buying an additional 97 shares during the last quarter. Journey Strategic Wealth LLC lifted its stake in Brown & Brown by 2.3% in the fourth quarter. Journey Strategic Wealth LLC now owns 4,486 shares of the financial services provider’s stock valued at $458,000 after acquiring an additional 99 shares during the last quarter. CWA Asset Management Group LLC increased its stake in shares of Brown & Brown by 3.7% during the 4th quarter. CWA Asset Management Group LLC now owns 2,916 shares of the financial services provider’s stock worth $297,000 after purchasing an additional 103 shares during the last quarter. Finally, Bleakley Financial Group LLC lifted its position in shares of Brown & Brown by 3.4% in the fourth quarter. Bleakley Financial Group LLC now owns 3,162 shares of the financial services provider’s stock worth $323,000 after buying an additional 103 shares during the last quarter. Hedge funds and other institutional investors own 71.01% of the company’s stock.

Brown & Brown Stock Performance

The firm has a market cap of $30.64 billion, a price-to-earnings ratio of 31.03, a price-to-earnings-growth ratio of 2.93 and a beta of 0.75. The company has a current ratio of 1.79, a quick ratio of 1.79 and a debt-to-equity ratio of 0.56. The stock has a fifty day moving average price of $118.08 and a 200 day moving average price of $110.62.

Brown & Brown Company Profile

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.