Ryan Specialty (NYSE:RYAN) Shares Gap Down After Earnings Miss

Ryan Specialty Holdings Inc. (NYSE:RYAN) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. 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 EPS for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.05). The company had revenue of $751.21 million for the quarter, compared to the consensus estimate of $777.43 million. Ryan Specialty had a return on equity of 47.38% and a net margin of 7.02%.The firm’s quarterly revenue was up 13.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.45 earnings per share.

Ryan Specialty Increases Dividend

The company also recently announced 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 yield of 1.3%. This is a positive change 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

RYAN has been the subject of several research reports. Barclays decreased 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. Keefe, Bruyette & Woods cut their price target on shares of Ryan Specialty from $65.00 to $55.00 and set an “outperform” rating for the company in a report on Friday. Cantor Fitzgerald lowered their price objective on shares of Ryan Specialty from $63.00 to $52.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 14th. JPMorgan Chase & Co. cut their target price on shares of Ryan Specialty from $63.00 to $56.00 and set an “underweight” rating for the company in a research note on Wednesday, January 7th. Finally, Jefferies Financial Group assumed coverage on shares of Ryan Specialty in a research report on Monday, December 1st. They issued a “hold” rating and a $64.00 price target on the stock. 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 given a Sell rating to the stock. According to data from MarketBeat.com, Ryan Specialty has an average rating of “Moderate Buy” and an average target price of $61.25.

Insiders Place Their Bets

In other news, CEO Timothy William Turner sold 129,570 shares of the company’s stock in a transaction dated 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 transaction, the chief executive officer owned 12,553 shares in the company, valued at $672,966.33. This represents a 91.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 52.21% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ryan Specialty

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Kestra Advisory Services LLC acquired a new stake in shares of Ryan Specialty during the 4th quarter valued at $153,000. UMB Bank n.a. boosted its position in Ryan Specialty by 14.8% during the fourth quarter. UMB Bank n.a. now owns 5,203 shares of the company’s stock valued at $269,000 after purchasing an additional 671 shares during the last quarter. Morgan Stanley grew its stake in Ryan Specialty by 3.4% in the fourth quarter. Morgan Stanley now owns 2,840,310 shares of the company’s stock valued at $146,645,000 after purchasing an additional 92,593 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in Ryan Specialty by 1.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,072,703 shares of the company’s stock valued at $55,384,000 after purchasing an additional 14,845 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its position in Ryan Specialty by 173.7% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 709 shares of the company’s stock worth $37,000 after purchasing an additional 450 shares during the last quarter. Hedge funds and other institutional investors own 84.82% of the company’s stock.

Ryan Specialty Price Performance

The company has a market capitalization of $10.19 billion, a PE ratio of 91.99, a P/E/G ratio of 0.98 and a beta of 0.62. The stock has a 50 day moving average price of $50.16 and a two-hundred day moving average price of $53.98. The company has a debt-to-equity ratio of 2.72, a quick ratio of 1.00 and a current ratio of 1.00.

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.