Ryan Specialty (NYSE:RYAN) Trading Down 5.3% - Here's Why

Key Points

• Shares dropped 5.3% intraday to about $36.21 on Wednesday, with volume (~243,463 shares) roughly 88% below the stock's average daily trading volume.
• Several major firms have trimmed price targets recently (Morgan Stanley $55→$50, Barclays $45→$41, Goldman $57→$49), and MarketBeat shows a consensus rating of "Hold" with a $51.35 consensus price target.
• Ryan Specialty missed the latest quarter (EPS $0.45 vs. $0.50 expected; revenue $751.2M vs. $777.4M), has a high debt-to-equity ratio (2.62) and a dividend payout ratio of 123.8% despite a recent quarterly increase to $0.13.

Ryan Specialty Holdings Inc. (NYSE:RYAN - Get Free Report) shares traded down 5.3% during mid-day trading on Wednesday . The company traded as low as $36.72 and last traded at $36.2070. 243,463 shares changed hands during trading, a decline of 88% from the average session volume of 2,009,015 shares. The stock had previously closed at $38.25.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Morgan Stanley decreased their price target on Ryan Specialty from $55.00 to $50.00 and set an "overweight" rating on the stock in a research report on Monday, April 6th. Royal Bank Of Canada initiated coverage on shares of Ryan Specialty in a research note on Tuesday, March 17th. They set an "outperform" rating and a $45.00 price objective for the company. Barclays decreased their target price on shares of Ryan Specialty from $45.00 to $41.00 and set an "overweight" rating on the stock in a report on Wednesday, April 8th. The Goldman Sachs Group cut their price target on shares of Ryan Specialty from $57.00 to $49.00 and set a "buy" rating for the company in a report on Wednesday, April 8th. Finally, Weiss Ratings downgraded Ryan Specialty from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, February 5th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $51.35.

Ryan Specialty Stock Performance

The company has a debt-to-equity ratio of 2.62, a current ratio of 0.98 and a quick ratio of 0.98. The stock has a market cap of $9.66 billion, a PE ratio of 87.07, a price-to-earnings-growth ratio of 1.02 and a beta of 0.71. The business has a 50 day moving average price of $36.88 and a two-hundred day moving average price of $47.39.

Ryan Specialty (NYSE:RYAN - Get Free Report) last announced its earnings results on Thursday, February 12th. The company reported $0.45 EPS for the quarter, missing analysts' consensus estimates of $0.50 by ($0.05). The business had revenue of $751.21 million for the quarter, compared to the consensus estimate of $777.43 million. Ryan Specialty had a net margin of 7.02% and a return on equity of 46.41%. The business's quarterly revenue was up 13.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.45 EPS. As a group, equities research analysts forecast that Ryan Specialty Holdings Inc. will post 2.24 EPS for the current fiscal year.

Ryan Specialty Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 24th were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Tuesday, February 24th. This is a positive change from Ryan Specialty's previous quarterly dividend of $0.12. Ryan Specialty's dividend payout ratio (DPR) is presently 123.81%.

Insiders Place Their Bets

In other news, Director Patrick G. Ryan, Jr. bought 25,500 shares of the company's stock in a transaction dated Monday, February 23rd. The shares were purchased at an average price of $39.96 per share, for a total transaction of $1,018,980.00. Following the completion of the purchase, the director owned 428,295 shares in the company, valued at approximately $17,114,668.20. This represents a 6.33% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 52.03% of the company's stock.

Institutional Trading of Ryan Specialty

Several institutional investors have recently added to or reduced their stakes in the business. Los Angeles Capital Management LLC bought a new position in shares of Ryan Specialty during the fourth quarter valued at $25,000. Advisory Services Network LLC bought a new position in Ryan Specialty during the 3rd quarter valued at about $28,000. SBI Securities Co. Ltd. boosted its holdings in shares of Ryan Specialty by 6,322.2% during the 4th quarter. SBI Securities Co. Ltd. now owns 578 shares of the company's stock valued at $30,000 after acquiring an additional 569 shares during the last quarter. Fifth Third Bancorp grew its stake in shares of Ryan Specialty by 65.4% in the third quarter. Fifth Third Bancorp now owns 612 shares of the company's stock worth $34,000 after acquiring an additional 242 shares during the period. Finally, Whittier Trust Co. of Nevada Inc. raised its holdings in shares of Ryan Specialty by 83.7% during the third quarter. Whittier Trust Co. of Nevada Inc. now owns 599 shares of the company's stock valued at $35,000 after purchasing an additional 273 shares during the last quarter. 84.82% of the stock is currently owned by hedge funds and other institutional investors.

About Ryan Specialty

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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