Brown & Brown (NYSE:BRO) Given New $85.00 Price Target at Truist Financial

Brown & Brown (NYSE:BRO) had its price objective cut by analysts at Truist Financial from $90.00 to $85.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage currently has a “buy” rating on the financial services provider’s stock. Truist Financial‘s target price indicates a potential upside of 28.50% from the company’s previous close.

Other equities research analysts also recently issued research reports about the stock. The Goldman Sachs Group boosted their target price on shares of Brown & Brown from $62.00 to $70.00 and gave the company a “neutral” rating in a research note on Wednesday, July 1st. UBS Group reaffirmed a “neutral” rating and set a $73.00 price objective (up from $65.00) on shares of Brown & Brown in a report on Wednesday, July 8th. TD Cowen started coverage on Brown & Brown in a report on Monday, October 12th. They issued a “buy” rating and a $82.00 target price on the stock. Citigroup restated a “market outperform” rating on shares of Brown & Brown in a research report on Monday, October 12th. Finally, Keefe, Bruyette & Woods raised Brown & Brown from an “underperform” rating to an “outperform” rating and set a $77.00 price objective on the stock in a research note on Monday, October 12th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Brown & Brown has an average rating of “Hold” and a consensus target price of $75.71.

Brown & Brown Price Performance

Shares of BRO traded down $1.40 during mid-day trading on Wednesday, reaching $66.15. The company had a trading volume of 1,238,565 shares, compared to its average volume of 2,939,138. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.11 and a quick ratio of 2.11. The company has a market capitalization of $22.13 billion, a P/E ratio of 20.93, a P/E/G ratio of 2.27 and a beta of 0.60. Brown & Brown has a twelve month low of $53.81 and a twelve month high of $82.57. The company’s 50-day moving average is $67.22 and its 200-day moving average is $67.03.

Brown & Brown (NYSE:BRO) last announced its quarterly earnings results on Monday, October 26th. The financial services provider reported $1.07 EPS for the quarter, missing the consensus estimate of $1.08 by ($0.01). Brown & Brown had a net margin of 17.75% and a return on equity of 13.17%. The company had revenue of $1.70 billion during the quarter, compared to analyst estimates of $1.76 billion. During the same period in the prior year, the firm earned $1.05 EPS. Brown & Brown’s quarterly revenue was up 7.4% compared to the same quarter last year. On average, equities analysts anticipate that Brown & Brown will post 4.49 EPS for the current year.

Institutional Investors Weigh In On Brown & Brown

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Brown & Brown during the 2nd quarter worth approximately $1,418,571,000. Principal Financial Group Inc. boosted its position in shares of Brown & Brown by 1.6% in the 1st quarter. Principal Financial Group Inc. now owns 15,608,720 shares of the financial services provider’s stock worth $1,017,847,000 after purchasing an additional 246,172 shares during the last quarter. Deutsche Bank AG bought a new position in shares of Brown & Brown in the 2nd quarter worth $266,941,000. Bank of America Corp DE grew its stake in shares of Brown & Brown by 45.2% during the first quarter. Bank of America Corp DE now owns 3,623,179 shares of the financial services provider’s stock worth $236,268,000 after purchasing an additional 1,128,417 shares during the period. Finally, Royal Bank of Canada increased its holdings in Brown & Brown by 5.1% in the first quarter. Royal Bank of Canada now owns 3,569,784 shares of the financial services provider’s stock valued at $232,786,000 after purchasing an additional 173,320 shares during the last quarter. 71.01% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Brown & Brown

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

• Positive Sentiment: Revenue increased 7.4% year over year to $1.725 billion, while net income rose 5.7% to $240 million. Adjusted EPS increased 1.9% to $1.07, and nine-month revenue grew 23.4% to $5.3 billion. Brown & Brown third-quarter results
• Positive Sentiment: Management outlined a target of $175 million in run-rate net EBITDAC synergies by the end of 2028 and projected 2027 retail organic growth of 2% to 4%, offering potential longer-term support from integration efficiencies and improved core growth. Brown & Brown synergy and growth targets
• Neutral Sentiment: Brown & Brown said the Accession acquisition added approximately 5,000 employees and expanded its capabilities, but investors are assessing whether the deal can deliver its expected benefits amid integration expenses and elevated leverage.
• Negative Sentiment: Adjusted EPS of $1.07 missed the $1.08 consensus estimate, while revenue of $1.70 billion was below the $1.76 billion forecast. The top-line gain was driven substantially by acquisitions rather than underlying demand. Brown & Brown earnings and revenue estimates
• Negative Sentiment: Organic revenue growth was only 1.2% (1.5% including contingents), signaling weak core momentum in a challenging insurance-rate environment. Management also cited softer specialty markets.
• Negative Sentiment: Profitability weakened: adjusted EBITDAC margin declined to 34.6% from 36.6% a year earlier, and income-before-tax margin fell to 18.6% from 19.4%. Accession-related costs, amortization and margin pressure are weighing on near-term earnings. Why Brown & Brown stock slumped

Brown & Brown Company Profile

Brown & Brown, Inc is an insurance brokerage and risk management company headquartered in Daytona Beach, Florida. The company helps businesses, public entities, individuals and other organizations identify, manage and transfer risk by arranging insurance coverage and providing related advisory services.

Its operations include retail insurance brokerage, national programs, wholesale brokerage and services. Brown & Brown offers property and casualty insurance, employee benefits, personal insurance, surety and other specialized coverage.