Argus has recently initiated Brown & Brown, Inc. (BRO) stock to Buy rating, as announced on September 24, 2024, according to Finviz. Earlier, on September 5, 2024, Barclays had initiated the stock to Equal Weight, setting a price target of $108. Wells Fargo also raised Overweight rating with a price target of $112. Additionally, BofA Securities raised Neutral rating on May 22, 2024, with a target price of $101. BofA Securities analysts, in their report published on March 13, 2024, also reduced Underperform rating and set a price target of $86 for Brown & Brown, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Brown & Brown, Inc. (BRO) Stock Trading Recap
On Monday, Brown & Brown, Inc. (BRO) stock saw a decline, ending the day at $106.05 which represents a decrease of $-0.34 or -0.32% from the prior close of $106.39. The stock opened at $106.35 and touched a low of $105.39 during the day, reaching a high of $106.49. The volume of shares traded was 1.52 million exceeding the average volume of 1.45 million.
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BRO Stock Performance and Moving Averages
In recent trading, Brown & Brown, Inc. (BRO) stock price has shown some volatility, fluctuating 0.10% over the last five trades and 4.99% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 28.55%, and it has gained 8.16% in the previous three months. Currently, BRO is trading at 1.22%, 2.38%, and 17.14% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, BRO, a Financial sector stock, is trading -1.50% below its 52-week high but remains 58.92% above its 52-week low. The Average True Range (ATR) (14 days) of 1.78 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Brown & Brown, Inc.’s Profitability and Valuation Ratios
Brown & Brown, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 30.26% and a profit margin of 21.66%, with a gross margin of 28.55%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Brown & Brown, Inc.’s market capitalization stands at $30.25 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 30.53, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 26.27. Additionally, the Price-to-Sales Ratio is 6.68, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 5.02, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 17.43% of Brown & Brown, Inc. (BRO)’s shares, while financial institutions hold 74.80%.
Notable insider trades include BROWN HYATT J, Chairman at Brown & Brown, Inc. (BRO), who sold 134640 shares on Aug 29 ’24, at $104.51 each, totaling $14.07 million. On Aug 08 ’24, Watts R. Andrew, EVP, CFO and Treasurer, sold 2500 shares for $100.32 each, amounting to $0.25 million. Additionally, on Jun 07 ’24, Turpin Julie sold 3350 shares at $89.92 each, generating $0.30 million.
