Keefe Bruyette raised the price target for the Brown & Brown Inc. (NYSE:BRO) stock from “a Mkt perform” to “an Outperform”. The rating was released on January 19, 2021. We previously noted in another research note published on January 08, 2021 by Goldman that upgraded the stock from a Neutral to a Buy with a price target of $54 for BRO stock.
Historical Earnings Surprises and Revenue Forecasts
Profit is the most critical financial performance measure. Every investor in a business is looking forward to the earnings report as stock price to increase when earnings exceed market expectations and progressively decrease when earnings do not meet expectations. The firm reported an earnings per share (EPS) of $0.32 during the last quarter as opposed to a consensus estimate of $0.29, which indicates the company beat its estimate by $0.03, which implies that the company surprised the market by 10.30%. It appears that the average earnings per share estimate for the current quarter (ending in Mar 2021) is $0.58. This is an average of 9 analysts’ earnings, where the high earnings per share estimate is $0.61 and the low earnings per share estimate is $0.54. According to 8 analyst estimates, an average revenue estimate of $755.81M is projected for the current quarter with a high revenue estimate of $771.12M and a low estimate of $733M.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of Brown & Brown Inc. (NYSE:BRO) raised 1.02% to close Friday’s market session at $50.48, higher as compared to yesterday’s close. The stock price fluctuated between $50.02 and $50.62 throughout the trading session with the volume trading being 1207175 shares, which represented a significant variation when compared to the three months average volume of 1.11 million shares. The firm’s stock price fluctuated 1.88% within the last five trades and 10.03% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 8.44% in the last 6 months and 6.30% was added to its value over the previous 3 months. BRO stock is trading at a margin of 5.81%, 8.27% and 10.21% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, BRO deals in the Financial domain. The stock is trading 0.48 percent below its 52-week high and 48.21 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 39.03. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does Brown & Brown Inc.’s Profitability and Valuation Ratios Tell Us About the Stock?
With regard to the profitability of the company, the operating margin is currently at 26.00 percent and the profit margin is 17.80 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.
The stock’s market cap achieved a total value of $14.14 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. The price-to-earnings ratio for Brown & Brown Inc. (NYSE:BRO) is 30.01. The price-to-earnings ratio is a method of assessing corporate values by comparing them to their per-share profit. Forward P/E stands at 25.65. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 5.41 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 3.71, which equates the market value of a stock with its book value.
Is Insider Trading a Real Thing?
Almost all investors and traders prefer to invest in shares controlled by the management of a corporation as a management company will be more likely to run the business itself and to never conduct things against the management’s desires and will always try to do what is best for their shareholders. Currently, 2.30 percent of Brown & Brown Inc. shares are owned by insiders, and 71.80 percent are held by financial institutions. Hays James Charles, the Director at Brown & Brown Inc. (BRO) has bought 10,000 shares of firm on Jan 29 at a price of $43.38 against the total amount of $0.43 million. In another inside trade, LLOYD ROBERT W, EVP, Secy, General Counsel of Brown & Brown Inc. (NYSE:BRO) sold 21,828 shares of the firm on Jul 30 for a total worth of $0.97 million at a price of $44.50.