Nicholas Dominic Cortezi, a director at Ryan Specialty Holdings, Inc. (NYSE:RYAN), a $16.5 billion market cap company that has delivered an impressive 44% return over the past year, executed a series of stock sales earlier this week, according to recent filings. According to InvestingPro data, the company has shown strong financial performance with robust growth prospects. On January 22 and 23, Cortezi sold a total of 45,485 shares of Class A Common Stock, generating approximately $2.99 million. The sales were executed at prices ranging from $65.111 to $66.4511 per share. These transactions were conducted through the Louise M. Cortezi Family Trust and the Louise M. Cortezi Family Resource Trust. Following these sales, Cortezi retains ownership of 98,849 shares in the family trust and 11,109 shares in the family resource trust. While the stock currently trades at premium multiples, InvestingPro analysis suggests the company remains slightly undervalued, with 8 additional exclusive insights available to subscribers.
In other recent news, Ryan Specialty Group has made significant strides in its ongoing operations. The company has entered into a definitive agreement to acquire Velocity Risk Underwriters, LLC. This move is expected to bolster Ryan Specialty’s property catastrophe portfolio and improve their services to wholesale clients. The acquisition, which includes Velocity’s managing general underwriter operations, is valued at an upfront cash consideration of $525 million and is anticipated to close early 2025.
In the financial arena, Ryan Specialty has reported a substantial increase in third-quarter revenue and earnings. The company’s total revenue rose by 20.5% to $605 million, while adjusted earnings increased by 29.4% to $190 million. This growth is attributed to the company’s strategic acquisitions and commitment to organic growth.
Furthermore, Morgan Stanley (NYSE:MS) initiated coverage on Ryan Specialty with an Overweight rating. This positive outlook is based on the industry’s ongoing shift towards the Excess & Surplus markets, where Ryan Specialty operates. The firm believes that Ryan Specialty’s leading role in the specialty distribution sector will enable it to maintain growth rates above the industry average.
In addition to these developments, Ryan Specialty Holdings has issued an additional $600 million in 5.875% Senior Secured Notes due 2032. This move is intended to fund potential future acquisitions and investments, aligning with its strategic growth plans. A portion of the proceeds is also expected to repay up to $400 million of the outstanding borrowings under the Revolving Credit Facility.
Lastly, Ryan Specialty aims to maintain organic revenue growth guidance of 13.0% to 14.0% for 2024, indicating a focus on sustained growth. These recent developments underscore Ryan Specialty’s strategic initiatives and commitment to growth in the specialty insurance sector.
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