Investment Analysis Report: Brown & Brown, Inc. (BRO)

Publication Date: December 30, 2025

Company Overview

Brown & Brown, Inc., headquartered in Daytona Beach, Florida, is a leading insurance broker operating within the financial services sector. Founded in 1939, the company specializes in marketing and selling a diverse range of insurance products and services, both domestically across the United States and internationally in markets including Canada, Ireland, and the United Kingdom. Its business model is structured around four primary segments: Retail, Programs, Wholesale Brokerage, and Services. These segments together provide comprehensive solutions encompassing property, casualty insurance, employee benefits, professional liability, and claims administration, catering to individual and commercial clients.

The financial services sector, especially insurance brokers, is currently under scrutiny, with analysts advising investors to maintain their holdings. The insurance industry has performed quite steadily, reflected in Brown & Brown's total revenue of approximately $5.35 billion, asserting the company's position as a formidable player in this sector.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The 52-week stock price chart for Brown & Brown, Inc. (NYSE: BRO) reveals a predominantly bearish trend. Over the past year, the stock reached a high of $125.68 and a low of $76.17, signifying significant volatility. Currently, the stock is trading at around $80.86, slightly below its fifty-day moving average of $81.15, suggesting the stock has been underperforming compared to its recent history.

Key technical analysis indicates:

• Downtrend: Following an upward movement that peaked around March-April 2025, the stock has consistently formed lower highs and lower lows, illustrating a clear downtrend.
• Current Price Action: With a price decline of approximately 20.23% from its peak, Brown & Brown has entered a consolidation phase, trading mostly sideways after a steep retreat.
• Support and Resistance Levels:
• Support Level: Currently testing support near $80, which has proven to be a pivotal level in recent weeks, suggesting a potential area of stabilization.
• Resistance Level: A significant resistance level is positioned at $100, where historical price action indicates sellers have previously emerged.

While the downtrend is evident, recent price action near the support level could reflect a possible pause before the next move. Investors should remain vigilant for any signs of momentum change or breakout patterns, particularly above the $100 resistance level, which could indicate a bullish trend reversal.

Financial Performance and Metrics

Brown & Brown's recent financial metrics paint a picture of resilience despite market headwinds:

• Total Revenue: Approximately $5.35 billion.
• EBITDA: About $1.86 billion, signaling strong profitability amid operational challenges.
• Adjusted Earnings Per Share (Q3 2025): Reported at $1.05, exceeding analysts' expectations of $0.94.
• Quarterly Revenues (Q3 2025): Came in at $1.6 billion, outperforming the forecast of $1.55 billion.

In terms of valuation, the stock currently trades at $80.86, slightly below the fifty-day moving average. Analyst projections suggest a high target price of $114.00 and a low target of $79.00, with a mean target estimated at $92.71. The median is at $90.00, indicating a central tendency amongst analysts' expectations leaning towards stabilization.

Recent News and Developments

Recent months have seen significant developments within Brown & Brown:

• Stock Price Declines: The company has faced stock price pressures, notably hitting a 52-week low of $76.81 on November 6, 2025, marking a 30.48% decrease over the past year.

• Positive Earnings Report: Despite stock price struggles, the company reported strong Q3 results, beating both earnings and revenue expectations.

• Strategic Acquisitions and Restructuring: In June 2025, Brown & Brown announced a $4 billion public offering aimed at acquiring RSC Topco, Inc., expanding its operational capabilities. Effective July 1, 2025, the company consolidated its Programs and Wholesale Brokerage segments into a new specialty distribution segment.

• Increased Dividends and Share Buyback: Approval of a 10% increase in quarterly cash dividends to $0.165 per share and the initiation of a share repurchase program of up to $1.5 billion in October 2025 reflects management's commitment to returning value to shareholders.

Market Sentiment and Analyst Recommendations

Current market sentiment appears mixed, leading analysts to recommend a cautious hold on existing positions in Brown & Brown.

• Analyst Consensus: A total of 14 analysts contributed to this analysis, yielding a recommendation mean score of 2.76 (on a scale where 1 corresponds to a strong buy and 5 to a strong sell). This indicates a preference for stability over aggressive trading strategies in the current climate.

• Price Targets: Average target prices suggest a potential upside, with a mean price goal at $92.71, which translates to about 14.7% upside from the current trading price of $80.86.

Opportunities & Risks

While the outlook for Brown & Brown holds promise, it is crucial to weigh both opportunities and risks:

• Opportunities:
• Continued success in strategic acquisitions may bolster future growth.
• Solid financial performance denotes resilience in revenue and operations amidst market fluctuations.

• Analysts project growth potential, particularly if the stock reverses its downward trend.

• Risks:

• The stock's current downtrend and movement below the fifty-day moving average may indicate persistent bearish market sentiment.
• Volatility in stock prices could pose risks, especially with the market environment showing signs of uncertainty.
• Investor skepticism as evidenced by the high percentage (approximately 4.37%) of shares sold short may indicate hesitation among market participants.

Conclusion

As we close the year on December 30, 2025, Brown & Brown, Inc. continues to exhibit a robust operational foundation with evident strategic moves aimed at future growth. While the current stock price reflects a challenging market environment, the company's fundamentals, alongside analyst projections, suggest potential for recovery. Overall, investors may consider maintaining their holdings as they continue to monitor market developments, technical indicators, and company performance in the months ahead.