Rayonier Advanced Materials (NYSE:RYAM) Announces Earnings Results

Key Points

• Rayonier Advanced Materials missed earnings expectations: The company reported a quarterly loss of $0.49 per share versus the consensus loss estimate of $0.22, although revenue of $376 million exceeded expectations of $362 million.
• Shares fell 2.9% to $8.76 following the results. The company continues to show weak profitability, including a negative net margin of 32.86% and negative return on equity of 43.24%.
• Analyst sentiment remains cautious: The stock carries a consensus “Reduce” rating and a $13 price target, while 68.64% of shares are held by hedge funds and other institutional investors.

Rayonier Advanced Materials (NYSE:RYAM - Get Free Report) issued its quarterly earnings data on Tuesday. The basic materials company reported ($0.49) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.22) by ($0.27), FiscalAI reports. The firm had revenue of $376.00 million during the quarter, compared to the consensus estimate of $362.00 million. Rayonier Advanced Materials had a negative return on equity of 43.24% and a negative net margin of 32.86%.

Rayonier Advanced Materials Trading Down 2.9%

Shares of NYSE RYAM traded down $0.26 during mid-day trading on Tuesday, hitting $8.76. The stock had a trading volume of 1,153,039 shares, compared to its average volume of 1,045,515. The company has a debt-to-equity ratio of 3.21, a quick ratio of 0.79 and a current ratio of 1.37. The business has a 50 day moving average price of $8.26 and a two-hundred day moving average price of $8.98. The firm has a market cap of $590.77 million, a P/E ratio of -1.24 and a beta of 1.77. Rayonier Advanced Materials has a 1 year low of $3.35 and a 1 year high of $11.85.

Institutional Investors Weigh In On Rayonier Advanced Materials

Several institutional investors and hedge funds have recently modified their holdings of the stock. Osaic Holdings Inc. lifted its holdings in Rayonier Advanced Materials by 754.4% in the second quarter. Osaic Holdings Inc. now owns 7,963 shares of the basic materials company's stock worth $31,000 after buying an additional 7,031 shares during the period. Graham Capital Management L.P. purchased a new stake in shares of Rayonier Advanced Materials in the fourth quarter worth $76,000. Dynamic Technology Lab Private Ltd bought a new stake in Rayonier Advanced Materials during the 4th quarter valued at about $86,000. Ancora Advisors LLC bought a new stake in shares of Rayonier Advanced Materials during the third quarter valued at approximately $138,000. Finally, Balyasny Asset Management L.P. bought a new stake in shares of Rayonier Advanced Materials in the 4th quarter worth $117,000. 68.64% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the stock. Zacks Research downgraded shares of Rayonier Advanced Materials from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 7th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rayonier Advanced Materials in a research note on Friday, July 17th. Royal Bank Of Canada decreased their target price on Rayonier Advanced Materials from $14.00 to $13.00 and set an "outperform" rating on the stock in a research note on Friday, July 17th. Finally, Wall Street Zen upgraded shares of Rayonier Advanced Materials from a "sell" rating to a "hold" rating in a research report on Monday, July 20th. One research analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $13.00.

Rayonier Advanced Materials Company Profile

Rayonier Advanced Materials, Inc is a publicly traded specialty bioproducts company focused on the production of high-purity cellulose and engineered wood products. Headquartered in Jacksonville, Florida, the company operates a network of manufacturing facilities across North America, New Zealand and Europe. Its cellulose specialties business produces dissolving pulps and high-purity fibers that serve a range of end markets, including food and beverage, personal care, pharmaceuticals and textiles.

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