Ryan Specialty Group (RYAN) has received a new Hold rating, initiated by Piper Sandler analyst, Paul Newsome.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Paul Newsome has given his Hold rating due to a combination of factors that balance the strengths and challenges faced by Ryan Specialty Group. The company operates in a defensible niche within the specialty insurance market, focusing on hard-to-place risks, which provides it with moderately high barriers to entry. This strategic positioning allows Ryan Specialty to achieve organic growth rates that surpass the industry average, although it is not entirely shielded from the broader deceleration affecting other brokers.
Despite the company’s strengths, such as higher margins and strong client alignment due to its wholesale-only model, the valuation of Ryan Specialty is roughly in line with its peers, trading at a similar price-to-earnings ratio. The experienced management team, led by industry veteran Patrick Ryan, adds credibility to the company’s operations. However, potential risks such as competition, economic fluctuations, and revenue concentration are factors that contribute to the Hold rating, suggesting that while the company is performing well, it may not currently offer significant upside potential compared to its peers.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RYAN in relation to earlier this year.