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

Brown & Brown Inc. [NYSE: BRO] slipped around -7.98 points on Tuesday, while shares priced at $55.10 at the close of the session, down -12.65%. The company report on October 24, 2022 that Brown & Brown, Inc. announces quarterly revenues of $927.6 million, an increase of 20.4%, diluted net income per share of $0.57 and Diluted Net Income Per Share – Adjusted of $0.50.

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Revenues for the third quarter of 2022 under U.S. generally accepted accounting principles (“GAAP”) were $927.6 million, increasing $157.3 million, or 20.4%, compared to the third quarter of the prior year, with commissions and fees increasing by 20.2% and Organic Revenue increasing by 6.7%. Income before income taxes was $218.0 million, increasing 10.9% from the third quarter of the prior year with Income Before Income Taxes Margin decreasing to 23.5% from 25.5% in the third quarter of the prior year. EBITDAC – Adjusted was $289.8 million, increasing 5.8% from the third quarter of the prior year with EBITDAC Margin – Adjusted decreasing to 31.2% from 35.6% in the third quarter of the prior year. Net income was $161.1 million, increasing $14.7 million, or 10.0%, and diluted net income per share increased to $0.57, or 9.6%, as compared to the third quarter of the prior year. Diluted Net Income Per Share – Adjusted decreased to $0.50, or 13.8%, as compared to the third quarter of the prior year.

Brown & Brown Inc. stock is now -21.60% down from its year-to-date (YTD) trading value. BRO Stock saw the intraday high of $60.45 and lowest of $54.965 per share. The company’s 52-week high price is 74.00, which means current price is +4.14% above from all time high which was touched on 03/31/22.

Compared to the average trading volume of 1.25M shares, BRO reached a trading volume of 6771113 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 $70.67 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 2.60. 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.

Goldman have made an estimate for Brown & Brown Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on July 12, 2022. While these analysts kept the previous recommendation, UBS raised their target price to Neutral. The new note on the price target was released on April 18, 2022, representing the official price target for Brown & Brown Inc. stock. Previously, the target price had yet another raise to $76, while Jefferies analysts kept a Buy rating on BRO stock.

The Average True Range (ATR) for Brown & Brown Inc. is set at 2.27, with the Price to Sales ratio for BRO stock in the period of the last 12 months amounting to 4.73. The Price to Book ratio for the last quarter was 3.57, with the Price to Cash per share for the same quarter was set at 8.58. Price to Free Cash Flow for BRO in the course of the last twelve months was 22.95 with Quick ratio for the last quarter at 1.80.

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 -11.36. With this latest performance, BRO shares dropped by -6.00% in over the last four-week period, additionally sinking by -16.11% over the last 6 months – not to mention a drop of -17.09% 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 34.86, with the RSI for the last a single of trading hit 31.19, and the three-weeks RSI is set at 37.36 for Brown & Brown Inc. [BRO]. The present Moving Average for the last 50 days of trading for this stock 62.76, while it was recorded at 60.70 for the last single week of trading, and 63.47 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 +31.67 and a Gross Margin at +94.99. Brown & Brown Inc.’s Net Margin is presently recorded at +18.82.

Return on Equity for this stock inclined to 14.44, with Return on Assets sitting at 6.03.

Brown & Brown Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.80 and a Current Ratio set at 1.80.

Earnings analysis for Brown & Brown Inc. [BRO]

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 13.22%.

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

There are presently around $11,340 million, or 75.90% of BRO stock, in the hands of institutional investors. The top three institutional holders of BRO stocks are: VANGUARD GROUP INC with ownership of 27,276,667, which is approximately 0.569% of the company’s market cap and around 0.30% of the total institutional ownership; SELECT EQUITY GROUP, L.P., holding 18,929,929 shares of the stock with an approximate value of $1.04 billion in BRO stocks shares; and BLACKROCK INC., currently with $900.31 million in BRO stock with ownership of nearly -15.986% of the company’s market capitalization.

Positions in Brown & Brown Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 300 institutional holders increased their position in Brown & Brown Inc. [NYSE:BRO] by around 17,168,819 shares. Additionally, 255 investors decreased positions by around 15,458,029 shares, while 90 investors held positions by with 173,185,485 shares. The mentioned changes placed institutional holdings at 205,812,333 shares, according to the latest SEC report filing. BRO stock had 78 new institutional investments in for a total of 4,994,723 shares, while 71 institutional investors sold positions of 1,694,567 shares during the same period.


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