Credit Suisse reiterates Brown & Brown Inc. [BRO] rating to Neutral and sets new price target at $50

PBYI Stock
PBYI Stock

Credit Suisse maintained its Brown & Brown Inc. [NYSE:BRO]‎ rating to the equivalent of Neutral but ‎changed the price target ‎to $50 ‎from $47, in a research note dated December 31, 2020. That figure ‎represents around a 8.10% ‎premium ‎from where the company’s shares closed on Wednesday.‎ ‎Other ‎analysts also revised their coverage, with Morgan Stanley’s analysts upgrading the shares from ‎‎”an ‎Underweight” rating to “an Equal-weight” rating in a research note to investors issued in ‎early ‎December. Meanwhile, Credit Suisse had launched its coverage on BRO with “Neutral”, in a ‎research ‎note produced for clients August 07, 2018. In addition, there was an upgrade from SunTrust ‎on ‎December 06, 2017. The rater changed BRO from “a Hold” to “a Buy”.

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Is Brown & Brown Inc. [NYSE:BRO] a ‎Good Buy Right Now?

It should be noted that BRO ‎technical indicators for short, intermediate as ‎well as long term progress have placed an overall ‎average of 72% as Buy. The average signal changed ‎from 40% Buy in the last week and compares with ‎‎48% Buy in the past month. Data from Brown & ‎Brown Inc.’s Trend Spotter indicated that the signals ‎were Strengthening. The stock current average is ‎‎0.97 million shares in the past 20 days and the short ‎term average signal indicates a Hold. In the last 50 ‎days, the average trading volume was 0.97 million ‎shares while the medium term average advocated ‎for 100% Buy. The average long-term signal stands ‎at 100% Buy and the 100-day average volume ‎stands at 0.92 million shares.‎‎

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BRO Price Performance

On Wall Street, Brown & Brown Inc. ‎‎[NYSE:BRO] finished ‎Wednesday’s session up 0.48% at $46.25. The stock went up to $46.71 at the same ‎session while its ‎lowest single day price was $46.00. In the last five days, it saw a rise of about 1.23%, ‎Brown & Brown ‎Inc. shares gained by almost 17.15% since the beginning of the year. However, the ‎share price has ‎dropped to as low as -5.01% below its one year high. On 02/21/20, the company shares ‎recorded ‎‎$48.69, the highest single-day price it has got to in the last 52-weeks and a 52-week low was ‎seen on ‎‎03/23/20, the same year at $30.70. The company’s shares have inclined by 17.15% in the past ‎year. The ‎‎50-day SMA achieved is $45.85 while the 200-day SMA is $42.67. Volume gained to 0.71 ‎million from ‎‎0.65 million in the previous session.‎‎

Brown & Brown Inc. [BRO] Valuation ‎Measures

Notably, Brown & Brown Inc. [BRO] stock ‎cannot be classified as a good candidate in ‎the listing of underestimated low-priced Insurance Brokers ‎companies to purchase soonest possible ‎with the prevailing 12-month PE ratio of 28.73. The measure ‎means the stock is exchanging at a ‎premium as compared to the 13.13x trailing earnings of the ‎industry. It can be helpful for investors to ‎consider historical price-sales ratio, more specifically, a 5.08 ‎PS value ratio is reported for the last one ‎year of reported earnings. That is higher than the industry ‎average of 1.07 which means BRO serve an ‎unattractive investment opportunity compared to its ‎competitors.‎‎

BRO Stock Support And ‎Resistance Levels

On the 24-hour scale, the immediate backing is ‎perceived around 45.93 level, ‎and in case of violation of this particular level, it will cause more drop to ‎‎45.61 level. On the upper level, ‎‎47.03 is still the key resistance. The stock may increase to the ‎subsequent resistance at 46.64. The ‎Relative Strength Index (RSI) pinned on the 14-day chart is 53.57, ‎implying a neutral technical stance ‎while the MACD stands at 0.16, meaning price will decrease in the ‎next trading period. Percent R ‎indicator moved to 35.41%, implying low price movement. Stochastic %K ‎at 58.57% suggest selling the ‎stock.‎‎

What is the short interest in Brown & Brown Inc.?

Short interest in the Brown & ‎Brown Inc. ‎stock has surged, increasing by 10000.0 shares to total 2.99 million shares on Dec 14, 2020. ‎The interest ‎had seen shares on Nov 12, 2020 stand at 3.0 million, data from Yahoo Finance shows. The ‎decrease of ‎‎-0.33% suggests the stock saw some decreased bullish sentiment. The stock’s days to ‎cover (short ‎ratio) moved to while the shorted shares account for just 1.45% of the overall float for the ‎stock.‎‎

Brown & Brown Inc.’s Biggest Shareholders: Who Owns Brown & Brown Inc. ‎‎[BRO]?

Filings ‎by The Vanguard Group, Inc. showed that the firm now holds a total of 23,356,189 ‎shares or roughly ‎‎8.22% of the outstanding BRO shares. This means their shares have reduced by -‎‎1,240,598 from the ‎‎23,356,189 the investor reportedly held in its prior 13-F filing. With the conclusion of ‎the sale, BlackRock ‎Fund Advisors updated stake is worth $1,036,875,190. Details in the latest 13F filings ‎reveal that Select ‎Equity Group LP acquired their 2.57% stake valued at $582,736,157 while SSgA Funds ‎Management, Inc. ‎cut theirs at $423,058,201. During the last quarter, Select Equity Group LP raised ‎‎324,549 of its shares in ‎Brown & Brown Inc. while SSgA Funds Management, Inc. sold -559,292 shares. ‎The Principal Global ‎Investors LLC’s holdings currently number 8,956,762 shares at $414250242.5. ‎According to the firm’s last ‎‎13F report, First Eagle Investment Management shares in the company at ‎filing stood at 8,400,336 ‎shares, roughly $378,267,130.‎‎

BRO Earnings Forecast For The Current ‎Quarter

Brown & Brown Inc. [BRO] is expected to ‎report strong earnings results for the quarter ‎ending on Dec 2020. Consensus estimates give the ‎company expected revenues of $622.7M and an ‎earnings per share of $0.29 for Dec 2020. Looking ‎further ahead, the company is expected to report ‎revenue of $742.7M at an EPS of $0.53 for Mar 2021. ‎The estimates represent upside of 7.10% and ‎‎3.14% in the company’s revenue and earnings per share, ‎respectively, on a year-on-year basis.‎‎

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BRO Earnings Estimates For The ‎Current ‎Year

For the financial year, Brown & Brown Inc. [NYSE:BRO] is expected to bring in ‎revenue of ‎‎$2.59B. The returns are nearly $200.0 million higher than the company’s actual revenue ‎recorded in the ‎fiscal year 2019. In terms of EPS for the 2020, estimate put it at 1.66, higher than that of ‎FY19 by $0.26. ‎Estimates put this year’s earnings growth at 18.60%, 3.00% for the next, and at an annual ‎‎10.47% over ‎the next 5-year period. As for sales, forecasts are for an increase of 8.50% in the current ‎fiscal year and ‎a further 7.10% over the following year.‎


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