Barclays Has Lowered Expectations for Brown & Brown (NYSE:BRO) Stock Price

by · The Cerbat Gem

Brown & Brown (NYSE:BRO – Get Free Report) had its price target decreased by investment analysts at Barclays from $83.00 to $82.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an “equal weight” rating on the financial services provider’s stock. Barclays‘s price objective points to a potential upside of 11.34% from the company’s previous close.

A number of other research analysts have also issued reports on the stock. Morgan Stanley dropped their price objective on shares of Brown & Brown from $95.00 to $85.00 and set an “equal weight” rating for the company in a report on Monday, November 17th. JPMorgan Chase & Co. started coverage on shares of Brown & Brown in a research report on Thursday, December 18th. They issued a “neutral” rating and a $91.00 price target for the company. Citigroup lowered shares of Brown & Brown from a “buy” rating to a “neutral” rating in a report on Monday, November 3rd. Wells Fargo & Company reduced their price objective on shares of Brown & Brown from $92.00 to $84.00 and set an “equal weight” rating on the stock in a research note on Tuesday, January 13th. Finally, Keefe, Bruyette & Woods increased their price objective on Brown & Brown from $79.00 to $80.00 and gave the company an “underperform” rating in a report on Tuesday, January 6th. Four investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $98.13.

Check Out Our Latest Report on BRO

Brown & Brown Trading Down 7.5%

Shares of NYSE BRO traded down $5.97 during midday trading on Tuesday, hitting $73.65. The stock had a trading volume of 4,040,344 shares, compared to its average volume of 2,822,085. The firm has a market cap of $25.15 billion, a P/E ratio of 22.02, a price-to-earnings-growth ratio of 1.85 and a beta of 0.81. Brown & Brown has a fifty-two week low of $73.10 and a fifty-two week high of $125.68. The company has a debt-to-equity ratio of 0.62, a current ratio of 2.10 and a quick ratio of 2.10. The company’s 50-day simple moving average is $79.86 and its 200 day simple moving average is $88.11.

Brown & Brown (NYSE:BRO – Get Free Report) last issued its earnings results on Monday, January 26th. The financial services provider reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.91 by $0.02. Brown & Brown had a net margin of 18.23% and a return on equity of 13.64%. The company had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same quarter last year, the firm earned $0.86 EPS. The company’s revenue for the quarter was up 35.7% on a year-over-year basis. Research analysts anticipate that Brown & Brown will post 4.18 EPS for the current year.

Institutional Trading of Brown & Brown

A number of institutional investors have recently bought and sold shares of the stock. Access Investment Management LLC acquired a new stake in shares of Brown & Brown in the 2nd quarter valued at about $1,109,000. Invesco Ltd. raised its position in shares of Brown & Brown by 1.1% during the second quarter. Invesco Ltd. now owns 4,166,370 shares of the financial services provider’s stock worth $461,925,000 after purchasing an additional 46,235 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Brown & Brown by 30.6% in the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 760,893 shares of the financial services provider’s stock worth $84,360,000 after purchasing an additional 178,082 shares in the last quarter. Quadrature Capital Ltd acquired a new stake in Brown & Brown in the 2nd quarter valued at $1,635,000. Finally, AMF Tjanstepension AB bought a new stake in Brown & Brown during the 2nd quarter valued at $6,798,000. 71.01% of the stock is currently owned by institutional investors.

Trending Headlines about Brown & Brown

Here are the key news stories impacting Brown & Brown this week:

  • Positive Sentiment: Very strong top‑line: total Q4 revenue rose ~35.7% YoY to ~$1.6B, driven by higher commissions & fees and acquisitions — signals scale and revenue momentum. Brown & Brown Q4 press release
  • Positive Sentiment: Adjusted profitability beat/expansion: Diluted Net Income Per Share – Adjusted rose to $0.93 (vs. ~$0.91 street view) and adjusted EBITDAC/margins expanded — supports the case for underlying operating strength. MarketBeat earnings note
  • Positive Sentiment: Improved investment and fee income supported results; Zacks highlights stronger investment income and higher adjusted EBITDAC as contributors to the beat. Zacks: Q4 earnings top estimates
  • Neutral Sentiment: Acquisition of Accession materially increased scale and drove much of the revenue lift — strategic for growth but brings integration costs and balance‑sheet changes. Quiver: results + Accession
  • Neutral Sentiment: Earnings call / management commentary are available (useful for color on organic growth and integration plans). Seeking Alpha earnings call transcript
  • Negative Sentiment: Organic revenue declined 2.8% in Q4 (company definition) — raises questions about core-book growth absent acquisitions and worries investors focused on organic momentum. Press release: organic revenue
  • Negative Sentiment: GAAP diluted EPS fell to $0.59 (down ~19% YoY) due to acquisition‑related amortization and other items — the gap between GAAP and adjusted EPS led to mixed investor reaction. Quiver: GAAP EPS details
  • Negative Sentiment: Balance‑sheet & leverage impact: the Accession purchase drove a large cash outflow and long‑term debt increase (material rise in debt vs. year‑ago) — investors worried about higher leverage and interest costs. Press release: cash flows & debt
  • Negative Sentiment: Analyst action and market reaction: Bank of America trimmed its price target and moved to neutral, and several outlets noted shares fell on concerns about slowing organic growth — which likely amplified the sell‑off. Benzinga: analyst PT change
  • Negative Sentiment: Corporate note: the company announced the passing of its Chief Legal Officer — a non‑operational but leadership disruption to monitor. GlobeNewswire: obituary

About Brown & Brown

(Get Free Report)

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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