Multiple insiders secured a larger position in Ryan Specialty Holdings, Inc. (NYSE:RYAN) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company’s prospects.
Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Ryan Specialty Holdings
Ryan Specialty Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO Patrick Ryan bought US$18m worth of shares at a price of US$38.36 per share. So it’s clear an insider wanted to buy, at around the current price, which is US$42.46. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. In this case we’re pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 1.74m shares for US$65m. But they sold 60.00k shares for US$2.5m. Overall, Ryan Specialty Holdings insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Ryan Specialty Holdings Have Sold Stock Recently
The last quarter saw substantial insider selling of Ryan Specialty Holdings shares. Specifically, Executive VP & Chief Revenue Officer Brendan Mulshine ditched US$1.5m worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.
Insider Ownership Of Ryan Specialty Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ryan Specialty Holdings insiders own 6.2% of the company, currently worth about US$690m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Ryan Specialty Holdings Insider Transactions Indicate?
An insider hasn’t bought Ryan Specialty Holdings stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we’re not too bothered by recent selling. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Ryan Specialty Holdings. Case in point: We’ve spotted 1 warning sign for Ryan Specialty Holdings you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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