Brown & Brown Inc.: A Mixed Year for Insurance’s Major Player
At a market capitalization of $29.5 billion, Brown & Brown, Inc. (BRO), headquartered in Daytona Beach, Florida, stands as a prominent insurance provider. With operations in the United States, Canada, Ireland, the United Kingdom, and other international markets, it caters to a wide array of commercial, public, professional, and individual clients.
Large-cap Status and Diverse Offerings
With its value exceeding $10 billion, Brown & Brown qualifies as a “large-cap” stock. The company utilizes a robust network of independent agents and brokers to offer customized insurance and risk management solutions.
Stock Performance Insights
Currently, the insurance company’s share price is down 9.6% from its 52-week high of $114.15, achieved on Nov. 27. In the past three months, shares of BRO have shown a slight decline, contrasting with the Nasdaq Composite’s ($NASX) impressive 14.1% gain in the same period.
Looking at a longer timeline, BRO is up 45.1% year-to-date (YTD), surpassing NASX’s nearly 34% return. Additionally, Brown & Brown shares have climbed 48.5% over the past year, compared to a 35.7% increase for NASX.
Market Trends and Analysis
Since the previous year, Brown & Brown consistently traded above its 200-day moving average. Though the stock initially remained above its 50-day moving average, it has dipped below this benchmark since early December.
Shares of Brown & Brown experienced a 1.6% increase following its Q3 earnings release on Oct. 28, which showcased stronger-than-expected financial performance. The company reported adjusted earnings of $0.91 per share, exceeding consensus estimates, alongside a year-over-year earnings growth of 12.3%. Total revenue reached $1.2 billion, driven by a 10.1% rise in commissioned fees and a remarkable 82.4% jump in investment income. This results in an expanded EBITDAC margin and robust cash flow, leading to heightened investor confidence.
Comparative Performance with Rival Firms
In comparison, Arthur J. Gallagher & Co. (AJG) has not performed as favorably as BRO, with a year-to-date return of 25.5% and a 24.1% increase over the past 52 weeks.
Future Outlook
Despite the recent performance of BRO, analysts maintain a cautiously optimistic view for the company. Among the 16 analysts monitoring the stock, there is a consensus rating of “Moderate Buy.” Currently, Brown & Brown is trading below the mean price target of $114.71.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
