Brown Stock Story

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Vlad Skutelnik Story
BRO -  USA Stock  

USD 58.28  0.82  1.43%

Macroaxis News
By Vlad Skutelnik  
Macroaxis Story
Brown Brown Market Capitalization is quite stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 16.71 Billion. Working Capital is expected to rise to about 749.3 M this year, although the value of Average Assets will most likely fall to about 8.1 B. This short post will outline Brown Brown as a possible investment alternative for your portfolios. We will provide a perspective on Brown Brown future direction.
Published over three months ago
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Will holding Brown (NYSE:BRO) be justified in February 2022?
The company has a beta of 1.023. Let's try to break down what Brown's beta means in this case. As returns on the market increase, Brown Brown returns are expected to increase less than the market. However, during the bear market, the loss on holding Brown Brown will be expected to be smaller as well. The beta indicator helps investors understand whether Brown Brown moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Brown deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Brown Brown. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Brown Brown

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Brown Brown's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Brown Brown in the context of predictive analytics.
Hype
Prediction
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Intrinsic
Valuation
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8 Analysts
Consensus
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Earnings
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Brown Brown. Your research has to be compared to or analyzed against Brown Brown's peers to derive any actionable benefits. When done correctly, Brown Brown's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Brown Brown.

How important is Brown Brown's Liquidity

Brown Brown financial leverage refers to using borrowed capital as a funding source to finance Brown Brown ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Brown Brown financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Brown Brown's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Brown Brown, but it might be worth checking our own buy vs. sell analysis

Acquisition by Timothy Main of 1667 shares of Brown Brown subject to Rule 16b-3

Legal trades by Brown Brown insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Brown insider trading alert for grant of common stock $.10 par value by Timothy Main, the corporate stakeholder, on 5th of May 2022. This event was filed by Brown Brown Inc with SEC on 2022-05-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

Brown Brown exhibits very low volatility with skewness of -0.38 and kurtosis of -0.01. However, we advise investors to further study Brown Brown technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Brown Brown's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Brown Brown's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Brown Brown Implied Volatility

Brown Brown's implied volatility exposes the market's sentiment of Brown Brown stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Brown Brown's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Brown Brown stock will not fluctuate a lot when Brown Brown's options are near their expiration.

Returns Breakdown

Return on Investment15.87
Return on Assets0.0509
Return on Equity0.15
Return Capital0.32
Return on Sales0.23

Our Brown analysis suggests possible reversion in February

Latest skewness indicator falls down to -0.38. Possible price upswing? Brown Brown exhibits very low volatility with skewness of -0.38 and kurtosis of -0.01. However, we advise investors to further study Brown Brown technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Brown Brown's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Brown Brown's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Brown Brown Implied Volatility

Brown Brown's implied volatility exposes the market's sentiment of Brown Brown stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Brown Brown's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Brown Brown stock will not fluctuate a lot when Brown Brown's options are near their expiration.

Our Conclusion on Brown Brown

Whereas many of the other players in the insurance brokers industry are either recovering or due for a correction, Brown may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither take over new shares of Brown nor sell your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Brown Brown.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Brown Brown. Please refer to our Terms of Use for any information regarding our disclosure principles.

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