BRO stock: buy or sell?
January 24th, 2020
Brown & Brown, Inc. markets and sells insurance products and services primarily in the United States, as well as in England, Bermuda, and the Cayman Islands.
Should I buy BRO stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
These 2 buy setups are elegible for Brown & Brown stock right now:
|New all-time high||Yes|
|New 52 week high||Yes|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Brown & Brown stock a buy?
Financial institutions and banks publish stock ratings everyday.At Stocks2.com, we collected 4 ratings published for BRO stock in the last month. The general sentiment of these ratings is bullish for BRO stock, with 3 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
BRO stock analysis
After several days of continuous rises in past weeks, Brown & Brown stayed steady 0.10% to $41.83.
After topping to all time highs on Jan 24th, Brown & Brown stayed steady 0.10% on Jan/24 to $41.83. BRO shows a strong short term uptrend with several rising tops and rising bottoms. Since its last bottom on Dec/30, BRO climbed unceasignly breaking out to new all time highs. On October BRO price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.
Brown & Brown shares set new all time highs back again this week, setting highs to $42.03. Shares closed at $41.83 and inched 1.01% during the week. Counting this, it's been 4 climbing weeks in a row, soaring a 6.29%.
Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $38.37 resistance. Since SMA20d and SMA40w crossed up early May, BRO price climbed $9.72 per share (30.27%). Since price and SMA40w lines crossed up by mid February 2019, BRO climbed $14.19 (51.34%).
BRO stock price history
BRO stock went public on November 5th, 1991 with a price of $0.001. Since then, BRO stock grew a inf%, with a yearly average of inf%. If you had invested right after BRO's IPO a $1,000 in BRO stock in 1991, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits.
BRO stock historical price chart
BRO stock reached all-time highs on January 24th with a price of $42.03.
BRO stock price target is $36.80How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 4 price targets for BRO stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-25||Morgan Stanley||Raises Target||$30.00||$33.00||10%|
|2019-7-24||Raymond James||Raises Target||$35.00||$38.00||8.6%|
|2019-7-16||SunTrust Banks||Raises Target||n/a||$40.00||-|
|2019-4-24||SunTrust Banks||Raises Target||$1.54||$36.00||2237.7%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince April, when Brown & Brown published its last earnings report, it . As soon as we get its posted EPS from the earnings report, we will extend this review.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual sales report draw a more than good gain of 8.22% to $2,009.86 million USD. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) slightly fell a -4.39% to 17.13%. Brown & Brown fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Brown & Brown TTM sales up to March 2019 were $2,127.02 and income $367.33 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem Brown & Brown business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, soared a good 5.83%. Regarding profit margin, Brown & Brown stayed stable 0.14% to 17.13%
|2013||$1,360 M||-||$212 M15.6%||-|
|2014||$1,567 M||15.25%||$207 M13.2%||-2.26%|
|2015||$1,657 M||5.71%||$243 M14.7%||17.60%|
|2016||$1,763 M||6.39%||$257 M14.6%||5.82%|
|2017||$1,857 M||5.36%||$400 M21.5%||55.20%|
|2018||$2,010 M||8.22%||$344 M17.1%||-13.86%|
|TTM||$2,127 M||5.83%||$367 M17.3%||6.70%|
Quarterly financial resultsBrown & Brown reported $617.50 million in sales for 2019-Q1, a 21.64% improvement compared to previous quarter. Reported quarter income marked $113.90 M with a profit margin of 18.45%. Profit margin inched a 3.98% compared to previous quarter when profit margin was 14.47%. When comparing sales to same quarter last year, Brown & Brown sales marked a super good gain and rocketed a 23.42%.
|2017-Q2||$466 M||-||$64 M13.8%||-|
|2017-Q3||$476 M||2.16%||$74 M15.6%||14.89%|
|2017-Q4||$473 M||-0.46%||$188 M39.6%||153.18%|
|2018-Q1||$500 M||5.70%||$91 M18.2%||-51.56%|
|2018-Q2||$472 M||-5.65%||$74 M15.7%||-18.61%|
|2018-Q3||$530 M||12.23%||$106 M20.0%||43.47%|
|2018-Q4||$508 M||-4.19%||$73 M14.5%||-30.74%|
|2019-Q1||$618 M||21.64%||$114 M18.4%||55.07%|
Brown & Brown ownershipWhen you are planning to invest in shares of a company, it's worth to review its ownership structure.
Brown & Brown shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 28.18% of all shares.
In case of Brown & Brown stock, 7.65% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for BRO stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Brown & Brown:
|Market cap||$11.8 B|
|Total shares||281.8 M|
|Float shares||234.8 M|
|- Institutional holdings (%)||7.6%|
|- Insider holdings (%)||28.2%|
|Shares in short selling||0.0%|
|Friday, January 24th, 2020|
|Day range||$41.62 - $42.03|
|Average true range||$0.45|
|50d mov avg||$39.13|
|100d mov avg||$37.72|
|200d mov avg||$35.56|
Brown & Brown performancePerformance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We picked as the bechmarking frame for Brown & Brown stock.
|BROBrown & Brown||16.58%||15.46%||49.82%|
Brown & Brown competitorsUnfortunately, we could not find any public company that could be defined as Brown & Brown competitor. This doesn't mean Brown & Brown does not have any competitor in the market, it's just we could not detected it.
Latest BRO stock news
- InvestorPlaceInsurance Company News: Brown & Brown Stock Up on Hays Companies BuyOctober 22, 2018