RYAN

Ryan Specialty ($RYAN) New CEO Sells $124M in Shares While Aggressive Acquisitions Drive 21% Growth

04/02/2025 23:00

Ryan Specialty Holdings ($RYAN) has seen significant insider selling amid aggressive acquisition strategies and robust organic growth, drawing investor attention to this expanding insurance intermediary. With a market capitalization of $19.1 billion, this large insurance brokerage and underwriting firm has seen its stock price climb more than 30% over the past year. The company has announced several strategic acquisitions in recent months, receiving positive market reactions. However, notable insider selling has continued throughout this growth period. The most eye-catching transaction was President Timothy William Turner's sale of 2 million shares on August 9, 2024, totaling $124.9 million. This sale came shortly after Turner's promotion to CEO was announced in July 2024, when founder Pat Ryan transitioned from CEO to Executive Chairman, and CFO Jeremiah Bickham was elevated to President. Another notable pattern emerges from board member Nicholas Dominic Cortezi's persistent stock sales. Cortezi consistently sold approximately 35,000 shares almost weekly from August 2024 through January 2025, with total proceeds reaching approximately $55 million. His sales primarily involved Restricted Stock Units that vested immediately upon grant, with settlement deferred until his separation from the board. Additional selling came from EVP Brendan Martin Mulshine, who sold a total of 45,000 shares (approximately $2.9 million) in August 2024, and EVP Mark Stephen Katz, who divested 45,000 shares (about $3 million) between November and December 2024. Despite this selling trend, there were small purchases, particularly by director Patrick G. Ryan Jr., who bought modest amounts of stock in November 2024 and March 2025. This insider selling pattern coincides with Ryan Specialty's aggressive acquisition strategy. The company announced plans to acquire US Assure Insurance Services for up to $1.48 billion in August 2024, which significantly boosted the stock price (8.3% increase on August 2). Additionally, in September 2024, the firm announced the acquisition of Ethos Specialty Insurance's P&C MGUs, and in January 2025, agreed to purchase Velocity Risk Underwriters for $525 million (completed in February 2025). These acquisitions are viewed as strategic moves to expand market share and enhance underwriting capabilities. Financially, Ryan Specialty has demonstrated solid performance. In Q4 2024, the company reported revenue of $663.5 million (a 23.6% year-over-year increase) and EPS of $0.45. For the full year 2024, total revenue grew by 21.1% to $2.52 billion. The company is targeting 11-13% organic growth for 2025. Analyst opinions are somewhat mixed. In September 2024, BMO upgraded Ryan Specialty to 'outperform' with a price target of $75, and the stock has consistently risen since. However, following the February 2025 earnings report, some analysts downgraded their EPS estimates for 2025 and 2026 due to concerns about margin outlook and interest expenses. Currently, the analyst consensus is 'buy' with a median price target of $76. The recent stock price hovers around $74, with a P/E ratio of 34.58x, suggesting a relatively rich valuation. The dividend yield is comparatively low at 0.66%. Ryan Specialty's insider selling and aggressive acquisition strategy suggest the company is entering a new growth phase. The recruitment of former Aon executive Steve Keogh as COO in March 2025 is interpreted as a move to enhance operational efficiency. Additionally, in February 2025, the company consolidated CorRisk Solutions and Celerity Pro to launch Celerity Risk, focusing on organizational streamlining. The insurance brokerage market is expected to see robust growth in 2025 and 2026, particularly due to high inflation and market changes following the U.S. election. In November 2024, Barclays raised price targets for insurance brokers, noting that price increases in casualty lines would be a positive factor. However, persistent selling by insiders, especially senior executives, sends a cautionary signal to investors. While such sales may be part of personal financial planning or diversification strategies, they warrant careful observation considering the company's growth trajectory and valuation metrics.

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