Don't Ignore The Insider Selling In Ryan Specialty Holdings

We wouldn't blame Ryan Specialty Holdings, Inc. (NYSE:RYAN) shareholders if they were a little worried about the fact that Nicholas Cortezi, the Director recently netted about US$7.0m selling shares at an average price of US$66.54. That's a big disposal, and it decreased their holding size by 21%, which is notable but not too bad.

Check out our latest analysis for Ryan Specialty Holdings

Ryan Specialty Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Nicholas Cortezi is the biggest insider sale of Ryan Specialty Holdings shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$63.73. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

All up, insiders sold more shares in Ryan Specialty Holdings than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Ryan Specialty Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Ryan Specialty Holdings insiders own 8.1% of the company, worth about US$1.4b. 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 Does This Data Suggest About Ryan Specialty Holdings Insiders?

Unfortunately, there has been more insider selling of Ryan Specialty Holdings stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Ryan Specialty Holdings is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Ryan Specialty Holdings (1 can't be ignored!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.