Brown & Brown, Inc. (NYSE: BRO)’s stock price has plunge by -0.37relation to previous closing price of 80.92. Nevertheless, the company has seen a -3.56% plunge in its stock price over the last five trading sessions. Seeking Alpha reported 2024-04-17 that Brown & Brown is a leading insurance broker with a strong track record of capital allocation and growth. The company’s focus on the middle-market and effective growth strategy positions it well in the insurance brokerage industry. Brown & Brown generates strong free cash flow, has a solid balance sheet, and has ample M&A opportunities for continued strong returns.
Is It Worth Investing in Brown & Brown, Inc. (NYSE: BRO) Right Now?
The price-to-earnings ratio for Brown & Brown, Inc. (NYSE: BRO) is above average at 26.41x, Company’s 36-month beta value is 0.80.Analysts have differing opinions on the stock, with 1 analysts rating it as a “buy,” 1 as “overweight,” 8 as “hold,” and 2 as “sell.”
The public float for BRO is 235.00M, and currently, short sellers hold a 1.10% ratio of that floaft. The average trading volume of BRO on April 18, 2024 was 1.29M shares.
BRO’s Market Performance
BRO stock saw a decrease of -3.56% in the past week, with a monthly decline of -5.16% and a quarterly a decrease of 8.26%. The volatility ratio for the week is 1.58%, and the volatility levels for the last 30 days are 1.41% for Brown & Brown, Inc. (BRO). The simple moving average for the past 20 days is -5.04% for BRO’s stock, with a 7.67% simple moving average for the past 200 days.
Analysts’ Opinion of BRO
Many brokerage firms have already submitted their reports for BRO stocks, with BofA Securities repeating the rating for BRO by listing it as a “Underperform.” The predicted price for BRO in the upcoming period, according to BofA Securities is $86 based on the research report published on March 13, 2024 of the current year 2024.
Jefferies, on the other hand, stated in their research note that they expect to see BRO reach a price target of $78, previously predicting the price at $85. The rating they have provided for BRO stocks is “Hold” according to the report published on January 09th, 2024.
RBC Capital Mkts gave a rating of “Outperform” to BRO, setting the target price at $81 in the report published on January 08th of the current year.
BRO Trading at -3.88% from the 50-Day Moving Average
After a stumble in the market that brought BRO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -8.38% of loss for the given period.
Volatility was left at 1.41%, however, over the last 30 days, the volatility rate increased by 1.58%, as shares sank -5.69% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.91% upper at present.
During the last 5 trading sessions, BRO fell by -3.56%, which changed the moving average for the period of 200-days by +17.11% in comparison to the 20-day moving average, which settled at $84.65. In addition, Brown & Brown, Inc. saw 13.37% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at BRO starting from BROWN HYATT J, who sale 91,677 shares at the price of $85.14 back on Mar 13 ’24. After this action, BROWN HYATT J now owns 37,368,928 shares of Brown & Brown, Inc., valued at $7,804,964 using the latest closing price.
BROWN HYATT J, the Chairman of Brown & Brown, Inc., sale 144,323 shares at $85.96 during a trade that took place back on Mar 12 ’24, which means that BROWN HYATT J is holding 37,460,605 shares at $12,405,289 based on the most recent closing price.
Stock Fundamentals for BRO
Current profitability levels for the company are sitting at:
- 0.27 for the present operating margin
- 0.6 for the gross margin
The net margin for Brown & Brown, Inc. stands at 0.2. The total capital return value is set at 0.11. Equity return is now at value 16.83, with 5.88 for asset returns.
Based on Brown & Brown, Inc. (BRO), the company’s capital structure generated 0.4 points at debt to capital in total, while cash flow to debt ratio is standing at 0.27. The debt to equity ratio resting at 0.68. The interest coverage ratio of the stock is 5.95.
Currently, EBITDA for the company is 1.42 billion with net debt to EBITDA at 1.18. When we switch over and look at the enterprise to sales, we see a ratio of 5.8. The receivables turnover for the company is 2.09for trailing twelve months and the total asset turnover is 0.29.
Conclusion
In a nutshell, Brown & Brown, Inc. (BRO) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
