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

Key Points

• Ryan Specialty shares fell 5.6%, opening at $42.92 versus a previous close of $44.47, with the stock later trading near $42.29.
• Analyst sentiment remains mixed, with eight Buy ratings, ten Holds and one Sell; the consensus rating is Hold with a $52.21 target price.
• The company beat quarterly expectations, reporting $0.74 EPS and $916.65 million in revenue, while maintaining a $0.13 quarterly dividend. Institutional investors own approximately 84.82% of the stock.

Ryan Specialty Holdings Inc. (NYSE:RYAN - Get Free Report)'s share price gapped down before the market opened on Tuesday. The stock had previously closed at $44.47, but opened at $42.92. Ryan Specialty shares last traded at $42.2860, with a volume of 307,090 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on RYAN. Cantor Fitzgerald upped their target price on Ryan Specialty from $34.00 to $41.00 and gave the stock a "neutral" rating in a report on Monday, August 3rd. JPMorgan Chase & Co. raised their target price on Ryan Specialty from $39.00 to $45.00 and gave the company an "underweight" rating in a research note on Monday, August 3rd. UBS Group lifted their price target on Ryan Specialty from $50.00 to $55.00 and gave the company a "buy" rating in a research report on Monday, August 3rd. Zacks Research upgraded Ryan Specialty from a "strong sell" rating to a "hold" rating in a report on Tuesday, June 30th. Finally, Mizuho lowered their price objective on Ryan Specialty from $43.00 to $40.00 and set a "neutral" rating for the company in a research report on Wednesday, October 7th. Eight analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Ryan Specialty has a consensus rating of "Hold" and a consensus target price of $52.21.

Ryan Specialty Trading Down 5.6%

The firm has a market cap of $10.74 billion, a PE ratio of 58.38, a PEG ratio of 0.90 and a beta of 0.61. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 3.51. The stock's fifty day simple moving average is $40.35 and its two-hundred day simple moving average is $39.32.

Ryan Specialty (NYSE:RYAN - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.14. Ryan Specialty had a net margin of 7.55% and a return on equity of 43.97%. The firm had revenue of $916.65 million during the quarter, compared to analyst estimates of $873.93 million. During the same period last year, the business earned $0.66 earnings per share. The business's revenue was up 7.2% on a year-over-year basis. On average, sell-side analysts forecast that Ryan Specialty Holdings Inc. will post 2.17 EPS for the current fiscal year.

Ryan Specialty Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th were given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Tuesday, August 11th. Ryan Specialty's dividend payout ratio (DPR) is 72.22%.

Institutional Investors Weigh In On Ryan Specialty

Hedge funds have recently added to or reduced their stakes in the stock. Vulcan Value Partners LLC grew its stake in shares of Ryan Specialty by 20.0% in the second quarter. Vulcan Value Partners LLC now owns 7,912,669 shares of the company's stock worth $298,782,000 after acquiring an additional 1,317,334 shares during the last quarter. Principal Financial Group Inc. raised its position 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 worth $148,856,000 after purchasing an additional 37,339 shares during the last quarter. Stephens Investment Management Group LLC raised its position in shares of Ryan Specialty by 25.7% in the 1st quarter. Stephens Investment Management Group LLC now owns 2,424,337 shares of the company's stock worth $81,797,000 after purchasing an additional 495,243 shares during the last quarter. Bank of America Corp DE boosted its stake in Ryan Specialty by 34.8% in the 1st quarter. Bank of America Corp DE now owns 1,508,083 shares of the company's stock worth $50,883,000 after purchasing an additional 389,505 shares in the last quarter. Finally, Fenimore Asset Management Inc boosted its stake in Ryan Specialty by 1.8% in the 3rd quarter. Fenimore Asset Management Inc now owns 1,330,600 shares of the company's stock worth $49,232,000 after purchasing an additional 23,994 shares in the last quarter. 84.82% of the stock is owned by institutional investors.

Ryan Specialty Company Profile

Ryan Specialty Holdings, Inc is a specialty insurance services company that provides wholesale brokerage, managing general underwriting and delegated authority solutions. The company works with retail insurance brokers, agents, carriers and other market participants to place and manage complex, specialty risks that may require specialized underwriting expertise or customized coverage.

Its business includes specialty insurance and reinsurance brokerage, underwriting management and insurance program administration.

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