Brown & Brown’s Acquisition Strategy Raises Dilution Risk for Existing Shareholders

Brown & Brown (BRO) has disclosed a new risk, in the Share Price & Shareholder Rights category.

Brown & Brown relies heavily on acquisitions, and financing these deals through new equity issuances could dilute existing shareholders’ ownership and earnings per share. As additional stock, RSUs, PSUs, awards, or option exercises expand the float—without any preemptive rights for current holders—the market price of its common stock could fall, or be pressured simply by the expectation of such sales.

Overall, Wall Street has a Hold consensus rating on BRO stock based on 1 Buy and 12 Holds.

To learn more about Brown & Brown’s risk factors, click here.