Morgan Stanley slashes price target on Brown & Brown Inc. [BRO] – find out why.

Brown & Brown Inc. [NYSE: BRO] slipped around -0.27 points on Friday, while shares priced at $45.52 at the close of the session, down -0.59%. The company report on August 17, 2020 that Brown & Brown, Inc. Announces the Asset Acquisition of Amity Insurance Agency.

J. Scott Penny, Chief Acquisitions Officer of Brown & Brown, Inc. (NYSE:BRO), and Justin T. Kesner and Jonathan A. Lanza, the principals of Amity Insurance Agency, Inc., today announced that Brown & Brown of Massachusetts, Inc., a subsidiary of Brown & Brown, Inc., has acquired substantially all of the assets of Amity Insurance Agency.

Amity Insurance was founded in 1978 and offers a wide spectrum of insurance products and services, specializing in risk management solutions for customers in the legal, parking, transportation, and construction industries. The firm also provides a variety of personal lines insurance products and services to individuals throughout New England. Following the transaction, the Amity team will continue operating from their existing office in Quincy, Massachusetts, under the direction of Justin Kesner.

Brown & Brown Inc. stock is now 15.30% up from its year-to-date (YTD) trading value. BRO Stock saw the intraday high of $45.68 and lowest of $45.21 per share. The company’s 52-week high price is 48.69, which means current price is +48.27% above from all time high which was touched on 02/21/20.

Compared to the average trading volume of 1.12M shares, BRO reached a trading volume of 1019485 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Brown & Brown Inc. [BRO]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BRO shares is $46.56 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BRO stock is a recommendation set at 2.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Brown & Brown Inc. shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on December 05, 2019. The new note on the price target was released on August 07, 2018, representing the official price target for Brown & Brown Inc. stock.

The Average True Range (ATR) for Brown & Brown Inc. is set at 0.69, with the Price to Sales ratio for BRO stock in the period of the last 12 months amounting to 5.19. The Price to Book ratio for the last quarter was 3.47, with the Price to Cash per share for the same quarter was set at 2.25. Price to Free Cash Flow for BRO in the course of the last twelve months was 20.86 with Quick ratio for the last quarter at 1.20.

How has BRO stock performed recently?

Brown & Brown Inc. [BRO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.65. With this latest performance, BRO shares gained by 0.91% in over the last four-week period, additionally sinking by -3.78% over the last 6 months – not to mention a rise of 25.68% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BRO stock in for the last two-week period is set at 60.30, with the RSI for the last a single of trading hit 50.98, and the three-weeks RSI is set at 60.56 for Brown & Brown Inc. [BRO]. The present Moving Average for the last 50 days of trading for this stock 43.35, while it was recorded at 45.87 for the last single week of trading, and 40.72 for the last 200 days.

Brown & Brown Inc. [BRO]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Brown & Brown Inc. [BRO] shares currently have an operating margin of +28.38 and a Gross Margin at +94.62. Brown & Brown Inc.’s Net Margin is presently recorded at +16.12.

Return on Total Capital for BRO is now 14.11, given the latest momentum, and Return on Invested Capital for the company is 8.14. Return on Equity for this stock inclined to 12.14, with Return on Assets sitting at 5.33. When it comes to the capital structure of this company, Brown & Brown Inc. [BRO] has a Total Debt to Total Equity ratio set at 52.73. Additionally, BRO Total Debt to Total Capital is recorded at 34.53, with Total Debt to Total Assets ending up at 22.83. Long-Term Debt to Equity for the company is recorded at 49.79, with the Long-Term Debt to Total Capital now at 32.60.

Reflecting on the efficiency of the workforce at the company, Brown & Brown Inc. [BRO] managed to generate an average of $38,247 per employee. Receivables Turnover for the company is 2.50 with a Total Asset Turnover recorded at a value of 0.33.Brown & Brown Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.

Earnings analysis for Brown & Brown Inc. [BRO]

With the latest financial reports released by the company, Brown & Brown Inc. posted 0.39/share EPS, while the average EPS was predicted by analysts to be reported at 0.38/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 2.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BRO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Brown & Brown Inc. go to 8.93%.

Insider trade positions for Brown & Brown Inc. [BRO]

There are presently around $9,403 million, or 73.10% of BRO stock, in the hands of institutional investors. The top three institutional holders of BRO stocks are: BLACKROCK INC. with ownership of 28,591,828, which is approximately -0.495% of the company’s market cap and around 2.20% of the total institutional ownership; VANGUARD GROUP INC, holding 25,197,434 shares of the stock with an approximate value of $1.15 billion in BRO stocks shares; and SELECT EQUITY GROUP, L.P., currently with $574.3 million in BRO stock with ownership of nearly 5.727% of the company’s market capitalization.

212 institutional holders increased their position in Brown & Brown Inc. [NYSE:BRO] by around 9,025,581 shares. Additionally, 197 investors decreased positions by around 9,128,715 shares, while 59 investors held positions by with 188,412,455 shares. The mentioned changes placed institutional holdings at 206,566,751 shares, according to the latest SEC report filing. BRO stock had 63 new institutional investments in for a total of 1,894,843 shares, while 41 institutional investors sold positions of 980,308 shares during the same period.

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