Patrick Ryan, CEO and major owner at Ryan Specialty Holdings (RYAN), recently added 285,058 shares. The buy increased his holdings by 2.2 percent, and came to a total cost of just over $11 million.
In total, Ryan has bought shares on seven occasions in the past month. A company director also joined in with a 29,474 share buy, totaling just under $805,000. The last insider sale at Ryan Specialty Holdings occurred back in September.
Overall, company insiders own just over 14 percent of shares.
Shares of the services provider to the insurance industry are flat over the past year. Revenues are up about 16 percent, and shares trade at 30 times forward earnings.
The recent insider buys have occurred just after shares started bouncing off their most recent 52-week low.
Action to take: The company’s services place it in a strong position to benefit from the ongoing growth and complexity of the insurance market. That makes shares a potential long-term winner from current prices near the $40 range. At present, the company doesn’t pay a dividend.
In the short-term, traders can likely see the ongoing rally in shares to continue. The April $40 calls are an at-the-money trade. Last going for about $3.75, they can likely see a mid-to-high double-digit rally higher from here.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.