Brown & Brown (NYSE:BRO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Shares of Brown & Brown have outperformed the industry year to date. Brown & Brown’s compelling portfolio with impressive growth is driven by organic and inorganic initiatives. Plus, a solid capital position drives the company well for long- term growth. A solid performance is boosting cash flow, which should help the company deploy capital in shareholder-friendly moves. However, increased financial leverage and an exposure to currency exchange rate fluctuations are headwinds. Also, heavy dependence on limited clients for commission revenues raises caution. Moreover, escalating expenses are likely to hurt margins. The company has not witnessed any earnings movement for its 2018 and 2019 estimates in the last 60 days.”
Other analysts have also issued research reports about the company. Credit Suisse Group assumed coverage on Brown & Brown in a research note on Tuesday, August 7th. They issued a “neutral” rating and a $31.00 target price for the company. Morgan Stanley upped their target price on Brown & Brown from $26.00 to $28.00 and gave the stock an “underweight” rating in a research note on Tuesday, August 14th. Citigroup upped their target price on Brown & Brown from $25.00 to $26.00 and gave the stock a “sell” rating in a research note on Thursday, July 12th. Goldman Sachs Group assumed coverage on Brown & Brown in a research note on Monday, June 18th. They issued a “neutral” rating and a $31.00 target price for the company. They noted that the move was a valuation call. Finally, Wells Fargo & Co reaffirmed a “hold” rating and issued a $26.00 target price on shares of Brown & Brown in a research note on Monday, July 23rd. Three research analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have given a buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $28.46.
Brown & Brown (NYSE:BRO) last issued its earnings results on Monday, July 23rd. The financial services provider reported $0.26 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.28 by ($0.02). The firm had revenue of $473.10 million during the quarter, compared to analysts’ expectations of $472.74 million. Brown & Brown had a return on equity of 11.75% and a net margin of 22.25%. The firm’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.25 EPS. Sell-side analysts anticipate that Brown & Brown will post 1.22 earnings per share for the current fiscal year.
Several large investors have recently added to or reduced their stakes in the company. CENTRAL TRUST Co boosted its stake in shares of Brown & Brown by 14.0% during the third quarter. CENTRAL TRUST Co now owns 22,457 shares of the financial services provider’s stock valued at $664,000 after purchasing an additional 2,760 shares during the period. Royal London Asset Management Ltd. purchased a new stake in shares of Brown & Brown during the second quarter valued at approximately $2,494,000. Northern Trust Corp boosted its stake in shares of Brown & Brown by 74.0% during the second quarter. Northern Trust Corp now owns 1,765,528 shares of the financial services provider’s stock valued at $48,959,000 after purchasing an additional 750,573 shares during the period. WINTON GROUP Ltd boosted its stake in shares of Brown & Brown by 47.5% during the second quarter. WINTON GROUP Ltd now owns 798,627 shares of the financial services provider’s stock valued at $22,146,000 after purchasing an additional 257,289 shares during the period. Finally, Bruderman Asset Management LLC purchased a new stake in shares of Brown & Brown during the second quarter valued at approximately $117,000. 71.97% of the stock is owned by hedge funds and other institutional investors.
Brown & Brown Company Profile
Brown & Brown, Inc markets and sells insurance products in the United States, England, Canada, Bermuda, and the Cayman Islands. Its Retail segment offers property insurance relating to physical damage to property and resultant interruption of business, or extra expense caused by fire, windstorm, or other perils; casualty insurance relating to legal liabilities, professional liability, cyber-liability, workers' compensation, and commercial and private passenger automobile coverages; fidelity and surety bonds; and life, accident, disability, health, hospitalization, medical, dental, and other ancillary insurance products, as well as risk management, loss control surveys and analysis, consultation, and claims processing services.
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