Brown & Brown (NYSE:BRO) Hits New 52-Week Low – Here’s What Happened

Brown & Brown, Inc. (NYSE:BRO) shares hit a new 52-week low on Monday . The stock traded as low as $55.26 and last traded at $55.6290, with a volume of 138016 shares. The stock had previously closed at $56.45.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on BRO. UBS Group reiterated a “neutral” rating and set a $81.00 target price (down from $90.00) on shares of Brown & Brown in a research note on Thursday, January 29th. The Goldman Sachs Group decreased their target price on shares of Brown & Brown from $82.00 to $73.00 and set a “neutral” rating for the company in a research note on Wednesday, April 8th. JPMorgan Chase & Co. decreased their target price on shares of Brown & Brown from $91.00 to $85.00 and set a “neutral” rating for the company in a research note on Thursday, April 9th. Wells Fargo & Company decreased their target price on shares of Brown & Brown from $72.00 to $69.00 and set an “equal weight” rating for the company in a research note on Wednesday, April 29th. Finally, Citigroup upgraded shares of Brown & Brown from a “neutral” rating to a “buy” rating and set a $70.00 target price for the company in a research note on Wednesday, May 6th. Four research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $80.73.

Brown & Brown Stock Up 0.8%

The stock has a market capitalization of $18.91 billion, a PE ratio of 17.94, a PEG ratio of 2.55 and a beta of 0.66. The firm’s fifty day moving average is $65.96 and its 200-day moving average is $73.53. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.52.

Brown & Brown (NYSE:BRO) last posted its quarterly earnings results on Monday, April 27th. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.03. The firm had revenue of $1.90 billion during the quarter, compared to analysts’ expectations of $1.89 billion. Brown & Brown had a net margin of 17.94% and a return on equity of 12.94%. The firm’s revenue for the quarter was up 35.4% on a year-over-year basis. During the same period in the prior year, the company posted $1.29 earnings per share. On average, equities research analysts predict that Brown & Brown, Inc. will post 4.51 earnings per share for the current year.

Brown & Brown Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Monday, May 11th will be issued a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Monday, May 11th. Brown & Brown’s dividend payout ratio is currently 21.22%.

Insider Transactions at Brown & Brown

In related news, Director H Palmer Proctor, Jr. bought 2,000 shares of the company’s stock in a transaction on Tuesday, May 5th. The stock was bought at an average cost of $57.10 per share, with a total value of $114,200.00. Following the completion of the acquisition, the director owned 47,621 shares in the company, valued at approximately $2,719,159.10. This represents a 4.38% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 13.13% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Darwin Wealth Management LLC purchased a new position in Brown & Brown in the second quarter valued at about $30,000. Cornerstone Planning Group LLC increased its holdings in Brown & Brown by 423.1% in the third quarter. Cornerstone Planning Group LLC now owns 272 shares of the financial services provider’s stock valued at $26,000 after buying an additional 220 shares in the last quarter. Basepoint Wealth LLC purchased a new position in Brown & Brown in the fourth quarter valued at about $27,000. Union Bancaire Privee UBP SA purchased a new position in Brown & Brown in the first quarter valued at about $25,000. Finally, DV Equities LLC purchased a new position in Brown & Brown in the fourth quarter valued at about $33,000. 71.01% of the stock is owned by hedge funds and other institutional investors.

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.