Score 9.3 (out of 10): BROWN & BROWN INC poised to seasonally rally by +5% during the next 60 days.

41

What’s Going On Here?

On Aug 2nd, Brown & Brown announced the completion of the previously-announced acquisition of the general insurance operating companies of BdB Limited.

Why Now?

BROWN & BROWN INC indicates an interesting 60 days seasonal set up. During similar occasions, BROWN & BROWN INC shares had a median return of +5% – based on 9 historical occasions with 9 of those showing positive returns (100%). This buy signal for BROWN & BROWN INC received a high score of 9.3 (out of 10). This insight was generated with last price of 64.9.

What’s This Company About?

BROWN & BROWN INC is in the Insurance Brokers business. Based on the last 2 years’ risk/return profile, this asset is seen as Moderate Risk. Ticker symbol: BRO US.

What’s My Risk / Reward and Time Horizon?

We found 60 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 68.15 (+5%) has been reached. Based on BROWN & BROWN INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 62.8 (last price at 64.9), which is equivalent to a -3.2% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

8.4% (September-2021), 10.5% (September-2020), 7.2% (September-2019), 4.8% (September-2018), 2.3% (September- 2017), 5.9% (September-2016), 4.5% (September-2015), 2.3% (September-2014), 5.2% (September- 2013)

Historical Chart:

Summary:

NameBROWN & BROWN INC
ViewUp
Star (1 to 10)9.3
Target5%
Time60 days
Hit Rate100%

———————————————————————a

Leave a Reply