Zacks Investment Research downgraded shares of Brown & Brown, Inc. (NYSE:BRO) from a buy rating to a hold rating in a research report report published on Monday morning.

According to Zacks, “Shares of Brown & Brown have outperformed the industry quarter-to-date. The company’s compelling portfolio with impressive growth is driven by organic and inorganic initiatives. Plus, solid capital positions the company well for the long term. A solid performance is boosting cash flow, which should help the company deploy capital in shareholder-friendly moves. For 2017, the company envisions margins to be about 300-350 bps lower than 2016, due to lower revenues in 2017 and the premium tax credits obtained during last year, that will not recur in 2017. Also, increased financial leverage and exposure to currency exchange rate fluctuations are headwinds. Also, dependence on limited clients for commission revenues raises caution. Escalating expenses are likely to hurt margins.”

BRO has been the topic of several other research reports. Morgan Stanley lifted their target price on shares of Brown & Brown from $40.00 to $43.00 and gave the stock an underweight rating in a report on Wednesday, October 18th. Barclays PLC boosted their price objective on shares of Brown & Brown from $39.00 to $43.00 and gave the stock an underweight rating in a report on Monday, October 16th. Wells Fargo & Company restated a hold rating on shares of Brown & Brown in a report on Tuesday, August 15th. BidaskClub downgraded shares of Brown & Brown from a hold rating to a sell rating in a report on Tuesday, August 8th. Finally, Citigroup Inc. boosted their price objective on shares of Brown & Brown from $45.00 to $46.00 and gave the stock a neutral rating in a report on Thursday, July 13th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and two have assigned a buy rating to the company. The company has an average rating of Hold and an average target price of $46.00.

Brown & Brown (NYSE:BRO) last announced its earnings results on Monday, October 16th. The financial services provider reported $0.53 EPS for the quarter, topping the consensus estimate of $0.49 by $0.04. The firm had revenue of $475.60 million for the quarter, compared to the consensus estimate of $475.13 million. Brown & Brown had a net margin of 14.66% and a return on equity of 10.99%. The business’s quarterly revenue was up 2.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.50 EPS.

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The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 8th. Stockholders of record on Friday, October 27th will be issued a dividend of $0.15 per share. This is an increase from Brown & Brown’s previous quarterly dividend of $0.14. The ex-dividend date is Thursday, October 26th. This represents a $0.60 annualized dividend and a dividend yield of 1.20%. Brown & Brown’s payout ratio is presently 31.75%.

Institutional investors have recently modified their holdings of the company. IFP Advisors Inc boosted its position in shares of Brown & Brown by 9.8% during the 2nd quarter. IFP Advisors Inc now owns 2,823 shares of the financial services provider’s stock valued at $122,000 after acquiring an additional 251 shares in the last quarter. Mosaic Family Wealth LLC boosted its position in shares of Brown & Brown by 5.9% during the 2nd quarter. Mosaic Family Wealth LLC now owns 4,208 shares of the financial services provider’s stock valued at $181,000 after acquiring an additional 235 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of Brown & Brown by 10.3% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,322 shares of the financial services provider’s stock valued at $186,000 after acquiring an additional 405 shares in the last quarter. Rowland & Co. Investment Counsel ADV boosted its position in shares of Brown & Brown by 4.1% during the 2nd quarter. Rowland & Co. Investment Counsel ADV now owns 4,465 shares of the financial services provider’s stock valued at $193,000 after acquiring an additional 175 shares in the last quarter. Finally, Hartford Investment Management Co. acquired a new stake in shares of Brown & Brown during the 2nd quarter valued at about $211,000. Institutional investors and hedge funds own 71.62% of the company’s stock.

About Brown & Brown

Brown & Brown, Inc is a diversified insurance agency, wholesale brokerage, insurance programs and service company. The Company markets and sells insurance products and services, in the property, casualty and employee benefits areas. It provides its customers with non-investment insurance contracts, as well as other customized risk management products and services.

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Analyst Recommendations for Brown & Brown (NYSE:BRO)

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