BRO stock: buy or sell?

BRO stock price: $35.42 -2.21% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

4

Brown & Brown shares slipped -2.21% to $35.42 today.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Brown & Brown stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Brown & Brown stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we detected 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.
Is BRO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-25Morgan Stanleyn/aUnderweight
2019-7-24Raymond Jamesn/aOutperform
2019-7-16SunTrust Banksn/aBuy
2019-4-24SunTrust Banksn/aBuy

BRO stock analysis

Daily outlook

Shares of Brown & Brown ended today at $35.42 and slipped an awful -2.21%.

Brown & Brown shares slipped -2.21% to $35.42 today. On May, SMA100d and SMA200d crossed up triggering a rise of 10.27%. On Aug/8, BRO hit new all time highs, pushing higher previous ATH of $36.63 recorded on July 29th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

BRO stock chart (daily)

Weekly outlook

Brown & Brown decreased a fatal -1.83% this week.

Brown & Brown stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high Brown & Brown marked early August. Since SMA20d and SMA40w crossed up early May, BRO price climbed $3.23 per share (10.03%). By mid February BRO price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

BRO stock chart (weekly)

BRO stock price history

BRO IPO was on November 5th, 1991 at $0.01 per share1. Since then, BRO stock surged a 354,100.00%, with a yearly average of 13,114.80%. If you had invested right after BRO's IPO a $1,000 in BRO stock in 1991, it would worth $3,541,000.00 today.

1: Adjusted price after possible price splits or reverse-splits.

BRO stock historical price chart

BRO stock reached all-time highs on Aug/8 with a price of $36.91.

BRO stock price target is $36.80

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We found 4 price predictions for Brown & Brown stock released in the last 30 days:
BRO stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-25Morgan StanleyRaises Target$30.00$33.0010%
2019-7-24Raymond JamesRaises Target$35.00$38.008.6%
2019-7-16SunTrust BanksRaises Targetn/a$40.00-
2019-4-24SunTrust BanksRaises Target$1.54$36.002237.7%
(in average)$22.20$36.8066.0%
The price forecast for Brown & Brown stock is $36.80, moving in a range between $40.00 and $33.00. In average, analysts' outlook on BRO price target is positive, improving the forecast by a 66.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Brown & Brown published its last earnings report, it climbed a super good 16.63%. Unfortunately, reported EPS is not yet available in our database.
BRO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.49n/a
2017-Q32017-10-160.490.538.2%
2017-Q42018-01-220.420.4711.9%
2018-Q12018-04-230.290.3313.8%
2018-Q22018-07-230.270.26-3.7%
2018-Q32018-10-220.340.3811.8%
2018-Q42019-01-280.270.26-3.7%
2019-Q12019-04-220.36n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw a pretty good gain of 8.22% to $2,009.86 million USD. In contrary, its income margin (compared to revenues) declined to 17.13%, that is $344.26 million.

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 earnings $367.33 M USD. 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, escalated a fine 5.83%. Regarding profit margin, Brown & Brown remained constant 0.14% to 17.13%

BRO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,360 M-$212 M15.6%-
2014$1,567 M15.25%$207 M13.2%-2.26%
2015$1,657 M5.71%$243 M14.7%17.60%
2016$1,763 M6.39%$257 M14.6%5.82%
2017$1,857 M5.36%$400 M21.5%55.20%
2018$2,010 M8.22%$344 M17.1%-13.86%
TTM $2,127 M5.83%$367 M17.3%6.70%

Quarterly financial results

Brown & Brown reported $617.50 M in revenues for 2019-Q1, a 21.64% improvement compared to previous quarter. Reported quarter earnings marked $113.90 M with a profit margin of 18.45%. Profit margin raised a 3.98% compared to previous quarter when profit margin was 14.47%. When comparing turnover to same quarter last year, Brown & Brown sales marked an amazing growth and rocketed a 23.42%.
BRO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$466 M-$64 M13.8%-
2017-Q3$476 M2.16%$74 M15.6%14.89%
2017-Q4$473 M-0.46%$188 M39.6%153.18%
2018-Q1$500 M5.70%$91 M18.2%-51.56%
2018-Q2$472 M-5.65%$74 M15.7%-18.61%
2018-Q3$530 M12.23%$106 M20.0%43.47%
2018-Q4$508 M-4.19%$73 M14.5%-30.74%
2019-Q1$618 M21.64%$114 M18.4%55.07%

Brown & Brown ownership

When you are planning to buy a stock, it's worth to check its ownership structure.

Brown & Brown shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 33.78% of all shares.

In case of Brown & Brown stock, 8.05% 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:

BROAJGAONMMCWLTW
Market cap$10.0 B$16.3 B$45.5 B$48.6 B$25.1 B
Total shares282.0 M185.2 M240.5 M507.6 M129.0 M
Float shares234.4 M183.8 M233.0 M506.0 M128.4 M
  - Institutional holdings (%)8.1%86.5%91.0%88.5%95.0%
  - Insider holdings (%)33.8%1.1%1.2%0.2%0.5%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

BRO summary

Friday, August 23rd, 2019
Open$36.09
Close$35.42
Day range$35.29 - $36.37
Previous close$36.22
Session gain-2.21%
Average true range$0.69
50d mov avg$34.94
100d mov avg$33.16
200d mov avg$30.69
Daily patternlt01a
Weekly pattern lt06a

Brown & Brown performance

To better understand Brown & Brown performance you must compare its gains with other related stocks in same sector or industry. We compared Brown & Brown against Arthur J. Gallagher, Aon, Marsh & McLennan Companies and Willis Towers Watson Public in the following table:
Stock3m6m12m
BROBrown & Brown11.45%20.60%17.83%
AJGArthur J. Gallagh...4.95%10.33%24.62%
AONAon6.66%10.49%31.39%
MMCMarsh & McLennan ...0.81%4.35%15.86%
WLTWWillis Towers Wat...9.71%14.38%34.25%

Brown & Brown competitors

We picked a few stocks to conform a list of Brown & Brown competitors to check if you are interested in investing in BRO:

Latest BRO stock news