Rayonier Advanced Materials (NYSE:RYAM) Shares Up 7% - Here's What Happened

Key Points

• Rayonier Advanced Materials shares rose 7% on Wednesday, trading as high as $9.21 before closing near $9.21. Volume was far below average, with about 125,519 shares changing hands versus a typical session volume of more than 1 million.
• Analyst sentiment remains mixed, with Royal Bank of Canada cutting its price target to $13 while keeping an outperform rating. Other firms have issued weaker views, and MarketBeat shows an average rating of “Reduce” with a $13 average target price.
• The company’s latest earnings report showed a loss of $1.22 per share, wider than expected, even though revenue topped estimates. Rayonier Advanced Materials also carries notable leverage, with a debt-to-equity ratio of 3.21 and negative margins.

Rayonier Advanced Materials Inc. (NYSE:RYAM - Get Free Report)'s stock price traded up 7% during trading on Wednesday . The stock traded as high as $9.21 and last traded at $9.2120. 125,519 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 1,048,078 shares. The stock had previously closed at $8.61.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on RYAM shares. Royal Bank Of Canada lowered their price objective on shares of Rayonier Advanced Materials from $14.00 to $13.00 and set an "outperform" rating on the stock in a research report on Friday, July 17th. Zacks Research cut Rayonier Advanced Materials from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rayonier Advanced Materials in a report on Friday. Finally, Wall Street Zen raised Rayonier Advanced Materials from a "sell" rating to a "hold" rating in a research report on Monday. One research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Reduce" and an average target price of $13.00.

Rayonier Advanced Materials Price Performance

The stock has a market capitalization of $625.84 million, a PE ratio of -1.32 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. The stock's 50-day moving average is $8.29 and its 200 day moving average is $8.87.

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

Institutional Trading of Rayonier Advanced Materials

Hedge funds and other institutional investors have recently modified their holdings of the company. Irenic Capital Management LP purchased a new position in Rayonier Advanced Materials in the first quarter valued at about $15,013,000. Quantinno Capital Management LP lifted its holdings in shares of Rayonier Advanced Materials by 10.7% during the 1st quarter. Quantinno Capital Management LP now owns 89,211 shares of the basic materials company's stock valued at $988,000 after buying an additional 8,596 shares during the last quarter. SummitTX Capital L.P. acquired a new stake in shares of Rayonier Advanced Materials during the 1st quarter valued at about $2,341,000. Lazard Asset Management LLC bought a new stake in shares of Rayonier Advanced Materials in the 1st quarter valued at approximately $2,150,000. Finally, Waverly Advisors LLC bought a new stake in shares of Rayonier Advanced Materials in the 1st quarter valued at approximately $1,298,000. 68.64% of the stock is currently owned by hedge funds and other institutional investors.

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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