Brown & Brown Inc. (BRO) shares are trading at lower $44.19 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $46.56.
To add more color to this target, the company’s high over the last year is $48.69 and the low is $30.70. Over the last 52 weeks, BRO is up 21.07% while the S&P 500 is up 11.74%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, BRO reported a profit of $129.4 million. Brown & Brown Inc. also saw revenues increase to $598.81 million. In addition, BRO has free cash flow of $380.76 million as of 06-2020. The company’s EBITDA came in at $176.68 million which compares well with its peers.
BRO booked profit margins of 17.10%, its Return on Equity (ROE) is 12.40%, and its Return on Assets is 5.50%. All told, it is clear that, BRO needs to be on your watchlist.
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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. BRO has a short ratio of 3.23 and outstanding shares of 273.10M.
BRO has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 1.55. Investors should also keep an eye on sector updates as BRO has historically followed its peers on positive news.
All told, Brown & Brown Inc. BRO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BRO 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.
Brown & Brown Inc. BRO is now commanding a market cap of 12.67B and a float of 234.54M. BRO 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 BRO 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 BRO, either long or short, and we have not been compensated for this article.