BRO Stock Declines 27.1% in a Year: What Should Investors Do Now?

BRO shares have dropped 27.1% over the past year, underperforming despite the insurance broker posting 32.4% commission growth and executing strategic acquisitions. The selloff reflects margin pressure from rising expenses and a near-doubling of interest costs, which surged 96.1% as the company carries $7.76 billion in debt.

The company continues to generate new business and retain clients while investing in AI capabilities, but the debt load is weighing on profitability. Zacks Investment Research assigns BRO a Hold rating, citing headwinds that offset growth catalysts. Analysts see 12.2% upside from current levels, but the mixed outlook suggests limited conviction.

Peers AON, AJG, and WTW face similar interest-rate sensitivity as brokers navigate elevated borrowing costs, though BRO's debt-to-operations ratio stands out in the group.