Wedbush Securities Increases Investment in Brown & Brown, Inc.

Wedbush Securities Inc. has increased its stake in Brown & Brown, Inc. (NYSE: BRO) by 7.9% during the second quarter of 2023, as disclosed in a filing with the Securities and Exchange Commission. The investment firm now holds a total of 11,864 shares of the financial services provider, following the acquisition of an additional 867 shares. This investment is valued at approximately $1.315 million as of the end of the quarter.

In addition to Wedbush’s investment, several other institutional investors have also adjusted their positions in Brown & Brown. Vanguard Group Inc. raised its stake by 1.9% in the first quarter, owning 30,501,119 shares worth $3.794 billion after acquiring 560,980 additional shares. Parnassus Investments LLC entered the market by acquiring a position valued at around $899 million. Invesco Ltd. increased its holdings by 8.3%, now owning 4,120,135 shares valued at $512.5 million. Royal Bank of Canada and Northern Trust Corp also lifted their stakes by 6.3% and 1.4%, respectively. Collectively, institutional investors and hedge funds own 71.01% of the stock.

Analyst Ratings and Market Performance

Brown & Brown has been the focus of various research reports recently. Bank of America maintained a “neutral” rating while lowering its price target from $135.00 to $97.00 on November 3, 2023. Raymond James Financial reiterated an “outperform” rating on the same day, while Barclays reduced its target from $108.00 to $102.00, assigning an “equal weight” rating. Morgan Stanley also adjusted its target from $105.00 to $100.00, maintaining an “equal weight” stance. BMO Capital Markets cut its target price from $122.00 to $106.00 while retaining an “outperform” rating.

Currently, five investment analysts rate Brown & Brown as a Buy, ten analysts recommend holding the stock, and one has issued a Sell rating. According to data from MarketBeat.com, the average target price stands at $105.23.

As for stock performance, Brown & Brown shares rose by 2.7% on a recent trading day, opening at $78.51. The stock’s one-year range fluctuates between a low of $76.17 and a high of $125.68. The company has a market capitalization of $26.81 billion, a price-to-earnings (P/E) ratio of 23.51, and a beta of 0.77.

Earnings and Dividend Announcement

Brown & Brown’s most recent earnings report, released on October 27, 2023, indicated that the company earned $1.05 per share (EPS) for the quarter, exceeding the consensus estimate of $0.90 by $0.15. The firm achieved a net margin of 18.23% and a return on equity of 13.64%, with total revenue reaching $1.61 billion, surpassing analyst expectations of $1.54 billion. This reflects a significant year-over-year revenue increase of 35.4% compared to the same quarter last year, when EPS was $0.91.

In a move to reward shareholders, Brown & Brown recently announced a quarterly dividend of $0.165 per share, set to be paid on November 12, 2023. Shareholders of record as of November 5 will receive this dividend, which is an increase from the previous quarterly dividend of $0.15. This translates to an annualized dividend of $0.66 per share, yielding approximately 0.8%. Currently, the company’s dividend payout ratio (DPR) is 19.76%.

Brown & Brown, Inc. operates as an insurance agency and wholesale brokerage, providing a range of insurance brokerage services and casualty insurance underwriting. The company is structured into various segments, including Retail, National Programs, Wholesale Brokerage, and Services.