Things are heating up at Ryerson Holding Corporation (NYSE: RYI), and not in a good way. The industrial metal processor just watched its stock price drop nearly 6% in a single day, closing at $19.35.

That’s a noticeable dip from its previous close at $20.56. Volume was also down big time, 41% below average.

So, what’s really happening with Ryerson?

Let’s start with the elephant in the room. Insiders sold over $734K worth of shares this past year. That includes a chunky $248K sale by President Edward Lehner. While he sold at a higher price than the current share level, multiple insider sell-offs always raise concerns for shareholders.

That said, not all insiders are bearish. Stephen Larson, Ryerson’s Board Chair, recently bought $225K in shares. This is again causing mixed investor reactions.

Hedge Funds Are Still Interested—But Earnings Say Otherwise

Despite the insider jitters, big institutional players aren’t totally backing off. Firms like Charles Schwab, William Blair, and Victory Capital have increased their holdings. In fact, institutional ownership now stands at a hefty 94.81%.

That kind of backing usually sends a positive signal, but investors aren’t ignoring the weak fundamentals.

Ryerson’s Q1 earnings report didn’t bring much joy. The company posted a net loss and reported earnings per share of -$0.18. Sure, that beat expectations slightly, but it still paints a rough picture.

Margins are thin, and supply chain pressures haven’t helped. Even with a solid revenue figure of $1.14 billion, the market wants more.

The dividend yield at 3.9% is one silver lining, but with a payout ratio of -340.91%, that raises more questions than it answers.

So, Should You Worry?

Well, that depends on your risk tolerance. The industrial and materials sector is dealing with inflation, slowing demand, and insider uncertainty.

Ryerson has decent insider ownership (4.3%) and long-term institutional backing. But a string of mixed signals, recent price drops, and a shaky earnings report are red flags.

The final verdict would be to keep Ryerson on your radar, but don’t go all-in just yet. Watch the insider activity, listen to analyst revisions, and wait for more stable signs before jumping in.