BRO stock: buy or sell?

BRO stock price: $41.83 0.10% At close on January 24th, 2020

Updated on:
January 24th, 2020

5

Brown & Brown ended on January 24th at $41.83 after marking a new all time high ($42.03) and stayed steady a tight 0.10%. January 24th was the third green session in a row, soaring 1.52%.

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:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

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.
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

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.

BRO stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $36.80

How 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:
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 target for Brown & Brown stock is $36.80, moving in a range between $40.00 and $33.00. In average, analysts' outlook on BRO price forecast is positive, increasing the forecast by a 66.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since 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.
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 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%

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 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%.
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 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:

BRO
Market cap$11.8 B
Total shares281.8 M
Float shares234.8 M
  - Institutional holdings (%)7.6%
  - Insider holdings (%)28.2%
Shares in short selling0.0%

BRO summary

Friday, January 24th, 2020
Open$41.90
Close$41.83
Day range$41.62 - $42.03
Previous close$41.79
Session gain0.10%
Average true range$0.45
50d mov avg$39.13
100d mov avg$37.72
200d mov avg$35.56
Daily patternlb03c
Weekly pattern lb02c

Brown & Brown performance

Performance 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.
Stock3m6m12m
BROBrown & Brown16.58%15.46%49.82%

Brown & Brown competitors

Unfortunately, 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.

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