Many stocks have been testing new highs in 2020, and one of the most notable is BRP Group Inc. (BRP). Currently, BRP is trading at $14.97 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $14.80.
To add more color to this target, the company’s high over the last year is $18.50 and the low is $8.35. Over the last 52 weeks, BRP is down -19.10% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, BRP reported a profit of $5.3 million. BRP Group Inc. also saw revenues increase to $54.16 million. In addition, BRP has free cash flow of $4.39 million as of 03-2020 The company’s EBITDA came in at $9.14 million which compares well with its peers.
About BRP Group Inc.
If readers are unfamiliar, BRP Group, Inc. operates as an insurance distribution company in the United States and internationally. The company operates through four segments: Middle Market, Specialty, MainStreet, and Medicare. The Middle Market segment provides private risk management, commercial risk management, and employee benefits solutions for mid-to-large size businesses and high net worth individuals and families. The Specialty segment operates as a wholesale co-brokerage platform that delivers programs requiring underwriting and placement services. The MainStreet segment offers personal, commercial, and life and health solutions to individuals and businesses in their communities. The Medicare segment provides consultation for government assistance programs and solutions to seniors and individuals through a network of agents. The company was founded in 2011 and is headquartered in Tampa, Florida.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BRP has a short ratio of 8.82 and outstanding shares of 63.39M.
BRP has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.12 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.11. Investors should also keep an eye on sector updates as BRP has historically followed its peers on positive news.
All told, BRP Group Inc. BRP has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BRP represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
BRP Group Inc. BRP is now commanding a market cap of 932.33M and a float of 19.81M. BRP is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BRP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in BRP, either long or short, and we have not been compensated for this article.