Goldman Sachs took its Brown & Brown [BRO] rating to the equivalent of Buy from Neutral, and the price target to $54.0 from $49, in a research note dated 2021-01-08. That figure represents around a 12.76% premium from where the company’s shares closed on Thursday. 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”.
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 100% as Buy. The average signal changed from 72% Buy in the last week and compares with 40% Buy in the past month. Data from Brown & Brown Inc.’s Trend Spotter indicated that the signals were Strongest. The stock current average is 0.98 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 1.01 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 0.95 million shares.
BRO Price Performance
On Wall Street, Brown & Brown Inc. [NYSE:BRO] finished Thursday’s session up 1.38% at $47.88. The stock went up to $48.21 at the same session while its lowest single day price was $47.17. In the last five days, it saw a rise of about 3.52%, Brown & Brown Inc. shares gained by almost 0.99% since the beginning of the year. However, the share price has dropped to as low as -1.66% below its one year high. On 01/07/21, the company shares recorded $48.21, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $45.60. The company’s shares have inclined by 20.33% in the past year. The 50-day SMA achieved is $45.90 while the 200-day SMA is $42.99. Volume dropped to 1.08 million from 1.53 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 29.74. The measure means the stock is exchanging at a premium as compared to the 13.51x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 5.20 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 47.30 level, and in case of violation of this particular level, it will cause more drop to 46.71 level. On the upper level, 48.79 is still the key resistance. The stock may increase to the subsequent resistance at 48.34. The Relative Strength Index (RSI) pinned on the 14-day chart is 62.25, implying a neutral technical stance while the MACD stands at 0.74, meaning price will decrease in the next trading period. Percent R indicator moved to 10.31%, implying bullish price movement. Stochastic %K at 76.40% 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 $428849764.56. 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 $623.4M and an earnings per share of $0.29 for Dec 2020. Looking further ahead, the company is expected to report revenue of $744.22M at an EPS of $0.53 for Mar 2021. The estimates represent upside of 7.20% and 3.68% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
BRO Earnings Estimates For The Current Year
For the financial year, Brown & Brown Inc. [NYSE:BRO] is expected to bring in revenue of $2.6B. The returns are nearly $210.0 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%, 3.60% for the next, and at an annual 11.95% 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 7.20% over the following year.