Ryan Specialty (NYSE:RYAN) Shares Down 4.8% - Should You Sell?

Key Points

• Ryan Specialty shares fell 4.8% to about $38.12 in low-volume trading, below the 50-day moving average but above the 200-day average.
• Analyst sentiment is mixed but leans neutral: eight analysts rate the stock a Buy, ten a Hold, and one a Sell. The consensus price target is $52.97, with recent targets ranging from $41 to $54.
• The company reported stronger-than-expected quarterly results, with $0.74 EPS and $916.65 million in revenue, while maintaining a $0.13 quarterly dividend and authorizing a $300 million share-repurchase program.

Ryan Specialty Holdings Inc. (NYSE:RYAN - Get Free Report)'s stock price fell 4.8% during mid-day trading on Tuesday . The stock traded as low as $38.41 and last traded at $38.1210. 192,162 shares changed hands during trading, a decline of 91% from the average session volume of 2,216,610 shares. The stock had previously closed at $40.06.

Analysts Set New Price Targets

A number of analysts recently issued reports on RYAN shares. Cantor Fitzgerald boosted their price target on Ryan Specialty from $34.00 to $41.00 and gave the company a "neutral" rating in a report on Monday, August 3rd. Keefe, Bruyette & Woods raised their price target on Ryan Specialty from $48.00 to $54.00 and gave the stock an "outperform" rating in a report on Friday, July 31st. Morgan Stanley lifted their price target on Ryan Specialty from $48.00 to $50.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 19th. JPMorgan Chase & Co. raised their target price on shares of Ryan Specialty from $39.00 to $45.00 and gave the stock an "underweight" rating in a report on Monday, August 3rd. Finally, Zacks Research upgraded Ryan Specialty from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 30th. Eight investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $52.97.

Ryan Specialty Stock Performance

The company has a market cap of $9.56 billion, a price-to-earnings ratio of 51.94, a P/E/G ratio of 0.80 and a beta of 0.57. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 3.51. The stock's fifty day simple moving average is $42.12 and its 200 day simple moving average is $37.56.

Ryan Specialty (NYSE:RYAN - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $0.74 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.60 by $0.14. Ryan Specialty had a return on equity of 43.97% and a net margin of 7.55%.The business had revenue of $916.65 million during the quarter, compared to the consensus estimate of $873.93 million. During the same period last year, the company earned $0.66 EPS. The company's revenue for the quarter was up 7.2% on a year-over-year basis. As a group, analysts anticipate that Ryan Specialty Holdings Inc. will post 2.18 earnings per share for the current year.

Ryan Specialty Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th were paid a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Tuesday, August 11th. Ryan Specialty's dividend payout ratio (DPR) is 72.22%.

Ryan Specialty declared that its Board of Directors has approved a stock repurchase program on Tuesday, May 26th that authorizes the company to repurchase $300.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 3.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On Ryan Specialty

Hedge funds and other institutional investors have recently bought and sold shares of the company. T. Rowe Price Investment Management Inc. boosted its position in shares of Ryan Specialty by 79.9% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 7,552,002 shares of the company's stock worth $389,910,000 after purchasing an additional 3,353,926 shares in the last quarter. Capital World Investors raised its position in shares of Ryan Specialty by 0.3% in the 4th quarter. Capital World Investors now owns 6,640,638 shares of the company's stock worth $342,856,000 after buying an additional 17,082 shares during the period. Vulcan Value Partners LLC increased its position in Ryan Specialty by 20.0% during the 2nd quarter. Vulcan Value Partners LLC now owns 7,912,669 shares of the company's stock worth $298,782,000 after purchasing an additional 1,317,334 shares in the last quarter. Principal Financial Group Inc. raised its stake in shares of Ryan Specialty by 0.9% in the 1st quarter. Principal Financial Group Inc. now owns 4,411,837 shares of the company's stock valued at $148,856,000 after acquiring an additional 37,339 shares during the period. Finally, Geode Capital Management LLC lifted its stake in shares of Ryan Specialty by 2.9% during the fourth quarter. Geode Capital Management LLC now owns 2,151,206 shares of the company's stock worth $111,089,000 after purchasing an additional 60,847 shares in the last quarter. 84.82% of the stock is currently owned by hedge funds and other institutional investors.

About Ryan Specialty

Ryan Specialty Holdings, Inc is a global specialty insurance organization that provides distribution, underwriting and product-development solutions for complex, hard-to-place risks. The company primarily serves insurance brokers, agents, carriers and other market participants that require specialized expertise, capacity and tailored coverage.

Its businesses include wholesale brokerage, managing general underwriting and delegated underwriting operations, as well as specialty insurance products and services.

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