Zacks Investment Research upgraded shares of Brown & Brown (NYSE:BRO) from a sell rating to a hold rating in a research report report published on Monday.
According to Zacks, “Brown & Brown’s compelling portfolio with an impressive growth trajectory driven by organic and inorganic initiatives bode well. It estimates Hays acquisition to deliver $210 million to $220 million of annual revenues, $47 million to $53 million of EBITDAC and net income per share of 2 cents to 3 cents in 2019. A solid capital position drives it well for long-term growth. Sturdy performance is boosting cash flow, helping it deploy capital in shareholder-friendly moves. However, increased financial leverage and exposure to currency exchange rate fluctuations are headwinds for the stock. Also, escalating expenses are likely to hurt margins. For 2019, it estimates non-cash stock compensation cost to increase $3 million to $5 million, interest expense in the range of $66 million to $68 million, and amortization between $100 million and $102 million. Shares of Brown & Brown have underperformed the industry year to date.”
Get Brown & Brown alerts:A number of other analysts also recently issued reports on the company. Barclays raised their price target on Brown & Brown from $23.00 to $26.00 and gave the stock an underweight rating in a research report on Monday, November 12th. ValuEngine upgraded Brown & Brown from a sell rating to a hold rating in a research report on Wednesday, January 2nd. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and two have assigned a buy rating to the stock. The stock currently has an average rating of Hold and an average target price of $29.00.
BRO stock opened at $29.17 on Monday. Brown & Brown has a fifty-two week low of $24.34 and a fifty-two week high of $31.55. The company has a quick ratio of 0.96, a current ratio of 0.95 and a debt-to-equity ratio of 0.49. The firm has a market capitalization of $8.16 billion, a P/E ratio of 23.72, a price-to-earnings-growth ratio of 2.20 and a beta of 0.66.
Brown & Brown (NYSE:BRO) last posted its earnings results on Monday, January 28th. The financial services provider reported $0.26 earnings per share for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.01). Brown & Brown had a net margin of 17.09% and a return on equity of 12.03%. The business had revenue of $508.70 million during the quarter, compared to analysts’ expectations of $503.52 million. During the same period last year, the business posted $0.24 earnings per share. The company’s revenue for the quarter was up 7.5% compared to the same quarter last year. Analysts predict that Brown & Brown will post 1.33 earnings per share for the current year.
The business also recently declared a quarterly dividend, which was paid on Wednesday, February 20th. Investors of record on Wednesday, February 6th were given a $0.08 dividend. The ex-dividend date was Tuesday, February 5th. This represents a $0.32 dividend on an annualized basis and a yield of 1.10%. Brown & Brown’s dividend payout ratio is presently 26.02%.
In related news, EVP Robert W. Lloyd sold 10,601 shares of the firm’s stock in a transaction on Wednesday, March 6th. The stock was sold at an average price of $29.29, for a total value of $310,503.29. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 17.12% of the stock is owned by company insiders.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Quantamental Technologies LLC bought a new stake in shares of Brown & Brown during the fourth quarter worth $42,000. IFP Advisors Inc lifted its position in shares of Brown & Brown by 57.5% during the fourth quarter. IFP Advisors Inc now owns 2,249 shares of the financial services provider’s stock worth $61,000 after purchasing an additional 821 shares during the last quarter. Capital Investment Advisory Services LLC bought a new stake in shares of Brown & Brown during the fourth quarter worth $84,000. Oppenheimer Asset Management Inc. bought a new stake in shares of Brown & Brown during the fourth quarter worth $99,000. Finally, Benjamin F. Edwards & Company Inc. lifted its position in shares of Brown & Brown by 24.1% during the fourth quarter. Benjamin F. Edwards & Company Inc. now owns 3,896 shares of the financial services provider’s stock worth $107,000 after purchasing an additional 757 shares during the last quarter. Institutional investors own 71.63% of the company’s stock.
About Brown & Brown
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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