Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

How to buy Brown-and-Brown stock | 47.66

Own Brown-and-Brown stock in just a few minutes.

Posted

Fact checked

Brown & Brown, Inc is an insurance brokers business based in the US. Brown-and-Brown shares (BRO) are listed on the NYSE and all prices are listed in US Dollars. Brown-and-Brown employs 10,083 staff and has a trailing 12-month revenue of around USD$2.5 billion.

How to buy shares in Brown-and-Brown

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Brown-and-Brown. Find the stock by name or ticker symbol: BRO. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Brown-and-Brown reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$47.66, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Brown-and-Brown, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Brown-and-Brown. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Brown-and-Brown's share price?

Since the stock market crash in March caused by coronavirus, Brown-and-Brown's share price has had significant negative movement.

Its last market close was USD$47.66, which is 1.45% down on its pre-crash value of USD$48.36 and 55.24% up on the lowest point reached during the March crash when the shares fell as low as USD$30.7.

If you had bought USD$1,000 worth of Brown-and-Brown shares at the start of February 2020, those shares would have been worth USD$694.30 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,045.18.

Brown-and-Brown share price

Use our graph to track the performance of BRO stocks over time.

Brown-and-Brown shares at a glance

Information last updated 2020-10-19.
Latest market close USD$47.66
52-week range USD$30.7 - USD$48.69
50-day moving average USD$45.5774
200-day moving average USD$42.0983
Wall St. target price USD$46.67
PE ratio 30.529
Dividend yield USD$0.34 (0.72%)
Earnings per share (TTM) USD$1.55

Buy Brown-and-Brown shares from these brokerages

Compare special offers, low fees and a wide range of types of investments among top trading platforms.
Name Product Stock trade fee Asset types Option trade fee Annual fee
Vanguard
$0
Stocks, Mutual funds, ETFs, Forex
$1
$20 per year
Get a personal advisor when you open an account with at least $50,000.
Robinhood
$0
Stocks, Options, ETFs, Cryptocurrency
$0
0%
Make unlimited commission-free trades in stocks, funds, and options with Robinhood Financial.
Sofi Invest
$0
Stocks, ETFs, Cryptocurrency
N/A
0%
A free way to invest in stocks, ETFs and crypto.
Interactive Brokers
$0
Stocks, Bonds, Options, Mutual funds, Index funds, ETFs, Futures, Cash
$0 + $0.65/contract, $1 minimum
0%
IBKR Lite offers $0 commissions, and IBKR Pro offers advanced tools for professional traders.
TD Ameritrade
$0
or $25 broker-assisted
Stocks
$0 + $0.65/contract,
or $25 broker-assisted
TD Ameritrade features $0 commission for online stock, but watch out for high short-term ETF and broker-assisted trading fees.
loading

Compare up to 4 providers

The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Brown-and-Brown stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Brown-and-Brown price performance over time

Historical closes compared with the close of $47.66 from 2020-11-16

1 week (2020-11-18) 1.43%
1 month (2020-10-23) 2.01%
3 months (2020-08-25) 3.59%
6 months (2020-05-22) 24.05%
1 year (2019-11-25) 25.55%
2 years (2018-11-23) 67.46%
3 years (2017-11-24) -4.78%
5 years (2015-11-25) 47.14%

Is Brown-and-Brown under- or over-valued?

Valuing Brown-and-Brown stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Brown-and-Brown's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Brown-and-Brown's P/E ratio

Brown-and-Brown's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 31x. In other words, Brown-and-Brown shares trade at around 31x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Brown-and-Brown's PEG ratio

Brown-and-Brown's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 4.41. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Brown-and-Brown's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Brown-and-Brown's EBITDA

Brown-and-Brown's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$810.7 million.

The EBITDA is a measure of a Brown-and-Brown's overall financial performance and is widely used to measure a its profitability.

Brown-and-Brown financials

Revenue TTM USD$2.5 billion
Operating margin TTM 27.34%
Gross profit TTM USD$1.1 billion
Return on assets TTM 5.54%
Return on equity TTM 13.05%
Profit margin 17.73%
Book value $12.633
Market capitalisation USD$13.1 billion

TTM: trailing 12 months

Shorting Brown-and-Brown shares

There are currently 2.6 million Brown-and-Brown shares held short by investors – that's known as Brown-and-Brown's "short interest". This figure is 21% down from 3.3 million last month.

There are a few different ways that this level of interest in shorting Brown-and-Brown shares can be evaluated.

Brown-and-Brown's "short interest ratio" (SIR)

Brown-and-Brown's "short interest ratio" (SIR) is the quantity of Brown-and-Brown shares currently shorted divided by the average quantity of Brown-and-Brown shares traded daily (recently around 1.1 million). Brown-and-Brown's SIR currently stands at 2.47. In other words for every 100,000 Brown-and-Brown shares traded daily on the market, roughly 2470 shares are currently held short.

However Brown-and-Brown's short interest can also be evaluated against the total number of Brown-and-Brown shares, or, against the total number of tradable Brown-and-Brown shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Brown-and-Brown's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Brown-and-Brown shares in existence, roughly 10 shares are currently held short) or 0.0127% of the tradable shares (for every 100,000 tradable Brown-and-Brown shares, roughly 13 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Brown-and-Brown.

Find out more about how you can short Brown-and-Brown stock.

Brown-and-Brown's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Brown-and-Brown.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Brown-and-Brown's total ESG risk score

Total ESG risk: 25.06

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Brown-and-Brown's overall score of 25.06 (as at 10/01/2020) is pretty good – landing it in it in the 39th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Brown-and-Brown is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Brown-and-Brown's environmental score

Environmental score: 0.82/100

Brown-and-Brown's environmental score of 0.82 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Brown-and-Brown is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Brown-and-Brown's social score

Social score: 10.66/100

Brown-and-Brown's social score of 10.66 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Brown-and-Brown is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Brown-and-Brown's governance score

Governance score: 16.22/100

Brown-and-Brown's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Brown-and-Brown is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Brown-and-Brown's controversy score

Controversy score: 1/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Brown-and-Brown scored a 1 out of 5 for controversy – the highest score possible, reflecting that Brown-and-Brown has managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Brown & Brown, Inc was last rated for ESG on: 2020-10-01.

Total ESG score 25.06
Total ESG percentile 38.94
Environmental score 0.82
Environmental score percentile 3
Social score 10.66
Social score percentile 3
Governance score 16.22
Governance score percentile 3
Level of controversy 1

Brown-and-Brown share dividends

22%

Dividend payout ratio: 22.37% of net profits

Recently Brown-and-Brown has paid out, on average, around 22.37% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.72% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Brown-and-Brown shareholders could enjoy a 0.72% return on their shares, in the form of dividend payments. In Brown-and-Brown's case, that would currently equate to about $0.34 per share.

While Brown-and-Brown's payout ratio might seem low, this can signify that Brown-and-Brown is investing more in its future growth.

Brown-and-Brown's most recent dividend payout was on 12 August 2020. The latest dividend was paid out to all shareholders who bought their shares by 4 August 2020 (the "ex-dividend date").

Have Brown-and-Brown's shares ever split?

Brown-and-Brown's shares were split on a 2:1 basis on 29 March 2018. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Brown-and-Brown shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Brown-and-Brown shares which in turn could have impacted Brown-and-Brown's share price.

Brown-and-Brown share price volatility

Over the last 12 months, Brown-and-Brown's shares have ranged in value from as little as $30.7 up to $48.69. A popular way to gauge a stock's volatility is its "beta".

BRO.US volatility(beta: 0.68)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Brown-and-Brown's is 0.6784. This would suggest that Brown-and-Brown's shares are less volatile than average (for this exchange).

Brown-and-Brown overview

Brown & Brown, Inc. markets and sells insurance products and services in the United States, England, Canada, Bermuda, and the Cayman Islands. It operates through four segments: Retail, National Programs, Wholesale Brokerage, and Services. The Retail segment offers commercial packages, group medical, workers' compensation, property risk, and general liability insurance products; and group and individual life, accident, disability, health, hospitalization, medical, dental, and other ancillary insurance products, as well as risk management, loss control survey and analysis, consultancy, and claims processing services. It serves commercial, public and quasi-public entities, professional, and individual customers. The National Programs segment offers professional liability and related package insurance products for dentists, oral surgeons, hygienists, lawyers, optometrists, opticians, ophthalmologists, insurance agents, financial advisors, registered representatives, securities broker-dealers, benefit administrators, real estate title agents, and escrow agents, as well as supplementary insurance products related to weddings, events, medical facilities, and cyber liabilities. This segment also offers outsourced product development, marketing, underwriting, actuarial, compliance, and claims and other administrative services to insurance carrier partners; and commercial and public entity-related programs, and flood insurance products. It serves through independent agents. The Wholesale Brokerage segment markets and sells excess and surplus commercial and personal lines insurance through independent agents and brokers. The Services segment offers third-party claims administration and medical utilization management services in the workers' compensation and all-lines liability arenas, Medicare Set-aside, Social Security disability, Medicare benefits advocacy, and claims adjusting services. The company was founded in 1939 and is headquartered in Daytona Beach, Florida.

Frequently asked questions

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site