BRO stock: buy or sell?
August 23rd, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
BRO stock analysis
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.
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 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 $36.80Nobody 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:
|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 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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%
|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 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%.
|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 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:
|Market cap||$10.0 B||$16.3 B||$45.5 B||$48.6 B||$25.1 B|
|Total shares||282.0 M||185.2 M||240.5 M||507.6 M||129.0 M|
|Float shares||234.4 M||183.8 M||233.0 M||506.0 M||128.4 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, August 23rd, 2019|
|Day range||$35.29 - $36.37|
|Average true range||$0.69|
|50d mov avg||$34.94|
|100d mov avg||$33.16|
|200d mov avg||$30.69|
Brown & Brown performanceTo 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:
|BROBrown & Brown||11.45%||20.60%||17.83%|
|AJGArthur J. Gallagh...||4.95%||10.33%||24.62%|
|MMCMarsh & McLennan ...||0.81%||4.35%||15.86%|
|WLTWWillis Towers Wat...||9.71%||14.38%||34.25%|
Brown & Brown competitorsWe picked a few stocks to conform a list of Brown & Brown competitors to check if you are interested in investing in BRO:
- Arthur J. Gallagher (AJG)
- Aon (AON)
- Marsh & McLennan Companies (MMC)
- Willis Towers Watson Public (WLTW)
Latest BRO stock news
- InvestorPlaceInsurance Company News: Brown & Brown Stock Up on Hays Companies BuyOctober 22, 2018