Ryan Specialty (NYSE:RYAN) Shares Gap Up on Insider Buying Activity

Key Points

• Ryan Specialty shares gapped up after an insider purchase, opening at $32.32 versus the prior close of $30.86 and last trading around $32.63.
• EVP Mark Stephen Katz bought 3,215 shares at an average of $31.07 each, boosting his stake by 287.82% to 4,332 shares.
• The company recently beat quarterly earnings and revenue estimates, and it also authorized a $300 million share buyback while continuing to pay a quarterly dividend.

Ryan Specialty Holdings Inc. (NYSE:RYAN - Get Free Report)'s share price gapped up prior to trading on Thursday after an insider bought additional shares in the company. The stock had previously closed at $30.86, but opened at $32.32. Ryan Specialty shares last traded at $32.6340, with a volume of 289,010 shares changing hands.

Specifically, EVP Mark Stephen Katz purchased 3,215 shares of the company's stock in a transaction dated Wednesday, June 3rd. The shares were acquired at an average cost of $31.07 per share, with a total value of $99,890.05. Following the completion of the purchase, the executive vice president owned 4,332 shares of the company's stock, valued at $134,595.24. The trade was a 287.82% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Keefe, Bruyette & Woods restated an "outperform" rating on shares of Ryan Specialty in a research note on Tuesday, May 26th. Royal Bank Of Canada assumed coverage on Ryan Specialty in a report on Tuesday, March 17th. They set an "outperform" rating and a $45.00 price target for the company. Morgan Stanley lowered their price target on Ryan Specialty from $45.00 to $39.00 and set an "overweight" rating for the company in a research note on Thursday, May 21st. Barclays dropped their price objective on Ryan Specialty from $41.00 to $39.00 and set an "overweight" rating on the stock in a report on Friday, May 1st. Finally, UBS Group set a $39.00 target price on shares of Ryan Specialty in a research note on Thursday, May 21st. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, Ryan Specialty has an average rating of "Hold" and an average price target of $46.76.

Ryan Specialty Stock Performance

The stock has a fifty day moving average price of $33.57 and a 200 day moving average price of $42.87. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 2.90. The firm has a market cap of $8.56 billion, a price-to-earnings ratio of 42.37, a price-to-earnings-growth ratio of 0.78 and a beta of 0.64.

Ryan Specialty (NYSE:RYAN - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.43 by $0.04. Ryan Specialty had a return on equity of 41.33% and a net margin of 8.21%.The firm had revenue of $795.23 million during the quarter, compared to analyst estimates of $781.44 million. During the same period in the previous year, the company earned $0.39 EPS. The company's revenue for the quarter was up 15.2% on a year-over-year basis. As a group, analysts predict that Ryan Specialty Holdings Inc. will post 2.04 earnings per share for the current year.

Ryan Specialty Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Tuesday, May 12th were issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Tuesday, May 12th. Ryan Specialty's dividend payout ratio is currently 67.53%.

Ryan Specialty announced that its board has initiated a share buyback plan on Tuesday, May 26th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the company to purchase up to 3.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Ryan Specialty

A number of institutional investors have recently made changes to their positions in RYAN. Advisory Services Network LLC acquired a new stake in Ryan Specialty in the 3rd quarter valued at approximately $28,000. Los Angeles Capital Management LLC acquired a new position in shares of Ryan Specialty during the fourth quarter worth approximately $25,000. SBI Securities Co. Ltd. lifted its holdings in shares of Ryan Specialty by 6,322.2% during the fourth quarter. SBI Securities Co. Ltd. now owns 578 shares of the company's stock worth $30,000 after buying an additional 569 shares during the last quarter. Fifth Third Bancorp boosted its position in shares of Ryan Specialty by 65.4% in the third quarter. Fifth Third Bancorp now owns 612 shares of the company's stock valued at $34,000 after acquiring an additional 242 shares during the period. Finally, Quarry LP acquired a new stake in shares of Ryan Specialty in the third quarter worth $37,000. 84.82% of the stock is currently owned by institutional investors.

Ryan Specialty Company Profile

Ryan Specialty Group, Inc NYSE: RYAN is a global specialty insurance and reinsurance platform that partners with a network of insurers and reinsurers to deliver tailored risk solutions. The company focuses on complex and large-scale risks across multiple industry sectors, leveraging its underwriting expertise to structure coverage programs that meet clients' unique needs.

Ryan Specialty's core offerings span a diverse range of specialty lines, including casualty, property, professional liability, marine and energy, program administration, and sports and entertainment.

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