Ryan Specialty (NYSE:RYAN) Shares Gap Down on Disappointing Earnings

Ryan Specialty Holdings Inc. (NYSE:RYAN) gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $44.38, but opened at $39.40. Ryan Specialty shares last traded at $37.7980, with a volume of 1,521,427 shares changing hands.

The company reported $0.45 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.05). Ryan Specialty had a net margin of 7.02% and a return on equity of 47.38%. The firm had revenue of $751.21 million for the quarter, compared to analysts’ expectations of $777.43 million. During the same period last year, the firm earned $0.45 earnings per share. Ryan Specialty’s revenue for the quarter was up 13.2% compared to the same quarter last year.

Ryan Specialty Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 24th will be given a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.3%. This is an increase from Ryan Specialty’s previous quarterly dividend of $0.12. The ex-dividend date is Tuesday, February 24th. Ryan Specialty’s payout ratio is currently 104.35%.

Ryan Specialty News Roundup

Here are the key news stories impacting Ryan Specialty this week:

• Positive Sentiment: Quarterly dividend raised to $0.13 (8.3% increase); the payout yields ~1.2% and signals management support for the stock. (No article link)
• Positive Sentiment: Management expects about $80M of annual savings from the Empower restructuring, which should help offset cost pressures over time. Read More.
• Neutral Sentiment: Some sell-side firms cut price targets (Keefe, Bruyette & Woods: $65 → $55; Wells Fargo: $63 → $56) but kept positive ratings (Outperform / Overweight), leaving meaningful upside from current levels despite reduced targets. Read More. • Read More.
• Neutral Sentiment: Revenue grew 13.2% YoY to $751.2M, but organic growth slowed to 6.6% — mixed top-line trend that shows scale but weaker underlying growth. Read More.
• Neutral Sentiment: Full Q4 earnings call transcript and several analyst write-ups are available for detail on guidance, segment performance and reserve/investment commentary. Useful for investors deciding whether the sell-off creates a buying opportunity. Read More.
• Negative Sentiment: Q4 missed Street expectations: EPS $0.45 vs. $0.50 consensus and revenue $751.2M vs. ~$777M expected; net income declined and management highlighted slower organic growth — the primary driver of the stock decline. Read More.
• Negative Sentiment: Margins came under pressure as the company “absorbs” investment costs and faces property-related pressures; analysts and trade press flagged margin compression as a material near-term risk. Read More.
• Negative Sentiment: Sell-side and media coverage highlight a “slow sales growth” outlook and the stock’s sharp intraday move, with elevated trading volume as investors reposition. That combination is intensifying the downward pressure. Read More. • Read More.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on RYAN. The Goldman Sachs Group set a $61.00 price target on Ryan Specialty in a report on Wednesday, January 7th. Barclays reduced their target price on Ryan Specialty from $58.00 to $52.00 and set an “overweight” rating for the company in a research note on Friday. Morgan Stanley set a $61.00 price target on shares of Ryan Specialty in a research note on Tuesday, December 16th. Jefferies Financial Group started coverage on shares of Ryan Specialty in a report on Monday, December 1st. They issued a “hold” rating and a $64.00 price target for the company. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Ryan Specialty from $63.00 to $56.00 and set an “underweight” rating on the stock in a report on Wednesday, January 7th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Ryan Specialty presently has a consensus rating of “Moderate Buy” and an average target price of $61.25.

Insider Activity at Ryan Specialty

In related news, CEO Timothy William Turner sold 129,570 shares of the stock in a transaction on Friday, December 12th. The stock was sold at an average price of $53.61, for a total value of $6,946,247.70. Following the completion of the transaction, the chief executive officer directly owned 12,553 shares of the company’s stock, valued at approximately $672,966.33. This represents a 91.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 52.21% of the company’s stock.

Institutional Investors Weigh In On Ryan Specialty

A number of large investors have recently modified their holdings of the business. Los Angeles Capital Management LLC purchased a new position in shares of Ryan Specialty in the fourth quarter worth about $25,000. Advisory Services Network LLC purchased a new position in Ryan Specialty in the 3rd quarter worth approximately $28,000. Golden State Wealth Management LLC boosted its holdings in shares of Ryan Specialty by 10,975.0% during the 2nd quarter. Golden State Wealth Management LLC now owns 443 shares of the company’s stock worth $30,000 after purchasing an additional 439 shares during the last quarter. 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 worth $30,000 after purchasing an additional 569 shares during the last quarter. Finally, MAI Capital Management grew its position in shares of Ryan Specialty by 65.3% in the second quarter. MAI Capital Management now owns 476 shares of the company’s stock valued at $32,000 after purchasing an additional 188 shares in the last quarter. Hedge funds and other institutional investors own 84.82% of the company’s stock.

Ryan Specialty Stock Performance

The stock has a market cap of $10.19 billion, a price-to-earnings ratio of 91.99, a PEG ratio of 1.12 and a beta of 0.62. The company has a debt-to-equity ratio of 2.72, a current ratio of 1.00 and a quick ratio of 1.00. The firm has a fifty day moving average of $50.16 and a 200 day moving average of $54.02.

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.