Rayonier Advanced Materials (NYSE:RYAM) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Rayonier Advanced Materials (NYSE:RYAM) from hold to strong sell, reinforcing a bearish view on the stock. Weiss Ratings also reaffirmed a sell rating.
• The company’s recent financial results were weak, with Q2 earnings of -$1.22 per share missing estimates, even though revenue came in above expectations. Analysts now expect Rayonier Advanced Materials to post -1.16 EPS for the full fiscal year.
• RYAM shares were trading at $7.25, below both its 50-day and 200-day moving averages, and the company carries notable leverage with a debt-to-equity ratio of 3.21. Institutional investors still own a majority of the stock at 68.64%.

Rayonier Advanced Materials (NYSE:RYAM - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rayonier Advanced Materials in a report on Tuesday, April 21st. One equities research analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $14.00.

Rayonier Advanced Materials Stock Performance

NYSE:RYAM opened at $7.25 on Tuesday. The company has a fifty day simple moving average of $8.60 and a two-hundred day simple moving average of $8.75. The company has a market cap of $488.67 million, a price-to-earnings ratio of -1.03 and a beta of 1.78. The company has a quick ratio of 0.79, a current ratio of 1.37 and a debt-to-equity ratio of 3.21. Rayonier Advanced Materials has a 52 week low of $3.35 and a 52 week high of $11.85.

Rayonier Advanced Materials (NYSE:RYAM - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The basic materials company reported ($1.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.62) by ($0.60). Rayonier Advanced Materials had a negative net margin of 32.86% and a negative return on equity of 43.24%. The company had revenue of $319.06 million during the quarter, compared to analyst estimates of $302.63 million. As a group, equities analysts anticipate that Rayonier Advanced Materials will post -1.16 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Rayonier Advanced Materials

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Millennium Management LLC raised its stake in Rayonier Advanced Materials by 38.0% during the 1st quarter. Millennium Management LLC now owns 1,168,291 shares of the basic materials company's stock valued at $6,718,000 after acquiring an additional 321,613 shares during the last quarter. Caxton Associates LLP purchased a new position in Rayonier Advanced Materials during the first quarter worth about $248,000. Empowered Funds LLC lifted its position in Rayonier Advanced Materials by 4.2% in the first quarter. Empowered Funds LLC now owns 372,031 shares of the basic materials company's stock valued at $2,139,000 after purchasing an additional 15,071 shares during the period. Geode Capital Management LLC lifted its position in Rayonier Advanced Materials by 1.3% in the second quarter. Geode Capital Management LLC now owns 1,539,236 shares of the basic materials company's stock valued at $5,927,000 after purchasing an additional 19,999 shares during the period. Finally, Marshall Wace LLP lifted its position in Rayonier Advanced Materials by 923.8% in the second quarter. Marshall Wace LLP now owns 138,904 shares of the basic materials company's stock valued at $535,000 after purchasing an additional 125,336 shares during the period. Hedge funds and other institutional investors own 68.64% of the company's stock.

About Rayonier Advanced Materials

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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