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Brown & Brown stock soars to all-time high of $112.64

Published 06/11/2024, 14:49
Updated 06/11/2024, 14:53
BRO
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In a remarkable display of market confidence, shares of Brown & Brown, Inc. (BRO) have surged to an all-time high, reaching a price level of $112.64. This peak represents a significant milestone for the Florida-based insurance brokerage firm, underscoring a period of robust growth. Over the past year, Brown & Brown has witnessed an impressive 55.55% increase in its stock value, a testament to the company's strong performance and investor optimism in its business strategy and market position. The ascent to record highs reflects the company's resilience and adaptability in a dynamic financial landscape, marking a noteworthy achievement for shareholders and the firm alike.

In other recent news, Brown & Brown Inc. reported a significant Q3 growth in its recent earnings call. The insurance brokerage firm announced an 11% increase in revenue, reaching nearly $1.2 billion, and an impressive 9.5% organic growth. Adjusted earnings per share rose by 12.3% to $0.91, and the EBITDAC margin improved to 34.9%, a 30 basis points increase.

The company also completed four acquisitions in Q3, contributing approximately $8 million in annual revenues. In light of recent hurricanes, Brown & Brown Inc. expects to record significant revenue from flood claims processing in Q4 2023 and H1 2025. The firm's M&A pipeline remains robust, with interest from private equity and potential international opportunities.

Despite challenges in the Retail segment and cautious economic conditions due to the upcoming Presidential Election, the company remains confident in its strategic direction and growth prospects. The Programs segment reported a significant 22.8% organic growth, primarily driven by new business, while the Wholesale Brokerage segment saw a 14% increase in total revenues. These are some of the recent developments in Brown & Brown Inc.'s business landscape.

InvestingPro Insights

Brown & Brown's recent surge to an all-time high is backed by solid financial performance and positive market sentiment. According to InvestingPro data, the company boasts a market capitalization of $31.5 billion, reflecting its substantial presence in the insurance brokerage sector. The firm's revenue growth of 11.36% over the last twelve months as of Q3 2024 aligns with its strong stock performance, indicating robust business expansion.

InvestingPro Tips highlight Brown & Brown's commitment to shareholder value, noting that the company has raised its dividend for 32 consecutive years. This consistent dividend growth, coupled with a 30.43% increase in the last twelve months, underscores the company's financial health and shareholder-friendly policies. Additionally, the stock's high return over the last year and decade, as pointed out by InvestingPro Tips, corroborates the 55.55% stock value increase mentioned in the article.

For investors seeking a deeper understanding of Brown & Brown's potential, InvestingPro offers 11 additional tips, providing a comprehensive analysis of the company's financial outlook and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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