Morgan Stanley Cuts Brown & Brown (NYSE:BRO) Price Target to $78.00

Brown & Brown (NYSE:BRO) had its target price lowered by Morgan Stanley from $85.00 to $78.00 in a report issued on Thursday,Benzinga reports. The firm currently has an equal weight rating on the financial services provider’s stock.

BRO has been the topic of a number of other reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Brown & Brown in a research note on Monday, December 29th. Barclays dropped their target price on Brown & Brown from $83.00 to $82.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 27th. Wells Fargo & Company decreased their price target on Brown & Brown from $84.00 to $82.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Mizuho cut their price objective on Brown & Brown from $90.00 to $84.00 and set a “neutral” rating for the company in a research report on Wednesday. Finally, Jefferies Financial Group reduced their target price on Brown & Brown from $89.00 to $84.00 and set a “hold” rating for the company in a report on Wednesday. Three research analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Brown & Brown currently has an average rating of “Hold” and a consensus price target of $90.64.

Brown & Brown Stock Down 0.0%

Brown & Brown stock opened at $72.09 on Thursday. The stock has a market capitalization of $24.61 billion, a price-to-earnings ratio of 22.53, a PEG ratio of 2.17 and a beta of 0.81. The company has a current ratio of 1.67, a quick ratio of 2.10 and a debt-to-equity ratio of 0.55. The stock has a 50 day moving average of $79.29 and a two-hundred day moving average of $87.28. Brown & Brown has a twelve month low of $71.32 and a twelve month high of $125.68.

Brown & Brown (NYSE:BRO) last posted its quarterly earnings data on Monday, January 26th. The financial services provider reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates of $0.91 by $0.02. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.65 billion. Brown & Brown had a net margin of 17.84% and a return on equity of 12.93%. Brown & Brown’s quarterly revenue was up 35.7% on a year-over-year basis. During the same period last year, the firm posted $0.86 EPS. As a group, research analysts expect that Brown & Brown will post 4.18 earnings per share for the current year.

Brown & Brown Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, February 11th. Shareholders of record on Wednesday, February 4th will be issued a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a yield of 0.9%. The ex-dividend date is Wednesday, February 4th. Brown & Brown’s dividend payout ratio (DPR) is 20.63%.

Institutional Trading of Brown & Brown

Several large investors have recently modified their holdings of BRO. Cornerstone Planning Group LLC lifted its stake in Brown & Brown by 423.1% in the 3rd 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. Darwin Wealth Management LLC purchased a new stake in shares of Brown & Brown in the second quarter valued at $30,000. Motco acquired a new stake in shares of Brown & Brown during the second quarter valued at $32,000. Board of the Pension Protection Fund acquired a new stake in shares of Brown & Brown during the fourth quarter valued at $40,000. Finally, Migdal Insurance & Financial Holdings Ltd. purchased a new stake in Brown & Brown during the 2nd quarter worth about $49,000. 71.01% of the stock is currently owned by institutional investors and hedge funds.

More Brown & Brown News

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

• Positive Sentiment: Keefe, Bruyette & Woods upgraded BRO from “underperform” to “market perform” (price target lowered to $73), a sign some analysts view downside as limited after recent weakness. Article Title
• Positive Sentiment: Argus upgraded the stock to a “hold,” which could provide modest support as some investors interpret upgrades as a floor for further selling. Article Title
• Neutral Sentiment: Q4 results were mixed: EPS $0.93 beat consensus $0.91, while revenue of $1.61B missed estimates (~$1.65B). EPS growth was solid year-over-year, but the revenue miss and management commentary appear to have prompted downward revisions from some analysts.
• Negative Sentiment: Bank of America lowered its long-term earnings outlook and cut its price target to $90 (from $94), citing Q4 results as the catalyst for lower forward assumptions—this reduces analyst confidence in near-term growth. Article Title
• Negative Sentiment: Mizuho lowered its expectations for BRO, further signaling analyst skepticism about upside following Q4. Article Title
• Negative Sentiment: Morgan Stanley cut its price target to $78 (now equal weight), reducing the consensus view of upside and suggesting more limited near-term appreciation. Article Title
• Negative Sentiment: BMO Capital Markets lowered its price target to $81 and placed a “market perform” rating, another downward revision tightening analyst price expectations. Article Title
• Negative Sentiment: Pomerantz LLP announced an investor investigation into Brown & Brown, which raises legal/settlement risk and can pressure the stock while the probe proceeds. Article Title
• Negative Sentiment: Coverage noted BRO reached a new 12-month low after recent analyst downgrades, reflecting the cumulative impact of cuts and the investigation on investor sentiment. Article Title

Brown & Brown Company Profile

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.