Wedbush Securities Increases Stake in Brown & Brown, Inc. by 7.9%

Wedbush Securities Inc. has increased its stake in Brown & Brown, Inc. (NYSE: BRO) by 7.9% during the second quarter of 2023, as reported in its latest filing with the Securities and Exchange Commission. Following the acquisition of an additional 867 shares, the firm now holds 11,864 shares of the financial services provider, valued at approximately $1,315,000.

Several other institutional investors have also adjusted their positions in Brown & Brown. Notably, Vanguard Group Inc. raised its stake by 1.9% in the first quarter, acquiring 560,980 shares to bring its total to 30,501,119 shares, valued at around $3.79 billion. Similarly, Parnassus Investments LLC entered a new position in the company worth approximately $899.1 million. Invesco Ltd. boosted its holdings by 8.3%, acquiring 316,519 shares, while Royal Bank of Canada increased its stake by 6.3% with an additional 181,315 shares.

Overall, institutional investors and hedge funds own 71.01% of Brown & Brown’s stock, indicating strong institutional interest in the company.

Analyst Ratings and Market Performance

Brown & Brown has recently been the subject of multiple research reports. Bank of America maintained a “neutral” rating, but adjusted its price target down to $97.00 from $135.00. Conversely, Raymond James Financial reiterated an “outperform” rating. Other firms, including Barclays and Morgan Stanley, also revised their target prices downward, with Barclays setting a new target of $102.00 and Morgan Stanley adjusting to $100.00.

Currently, five investment analysts have rated the stock with a Buy rating, while ten have issued a Hold rating, and one has suggested a Sell rating. According to data from MarketBeat.com, Brown & Brown holds an average rating of “Hold” with an average target price of $105.23.

On Monday, October 27, 2023, Brown & Brown’s stock opened at $78.51, reflecting a 2.7% increase. The company has experienced a low of $76.17 and a high of $125.68 over the past year. With a market capitalization of $26.81 billion, the firm has a price-to-earnings (P/E) ratio of 23.51 and a beta of 0.77.

Financial Results and Dividend Announcement

In its latest earnings report on October 27, 2023, Brown & Brown announced earnings of $1.05 per share, exceeding analysts’ expectations of $0.90 by $0.15. The company reported revenues of $1.61 billion, surpassing the estimated $1.54 billion and reflecting a substantial 35.4% year-over-year growth. The net margin for the quarter stood at 18.23%, with a return on equity of 13.64%.

In addition to its strong financial performance, Brown & Brown has announced an increase in its quarterly dividend, which will be paid on November 12, 2023. Shareholders of record on November 5, 2023 will receive a dividend of $0.165 per share, up from the previous dividend of $0.15. This reflects an annualized dividend of $0.66 and a yield of 0.8%. The company’s current dividend payout ratio stands at 19.76%.

Brown & Brown, Inc. operates as an insurance agency and wholesale brokerage, engaged in providing a range of insurance brokerage services and casualty insurance underwriting across multiple segments, including Retail, National Programs, Wholesale Brokerage, and Services. The firm continues to demonstrate resilience and growth in a competitive market.