Rayonier Advanced Materials (NYSE:RYAM) Stock Price Down 5.2% - Here's What Happened

Key Points

• Shares fell 5.2% to about $10.07 on Monday (intraday low $9.95) on sharply lower volume—184,291 shares traded, roughly 83% below the daily average.
• The company missed quarterly EPS (reported ($0.28) vs. consensus ($0.09)) and shows weak fundamentals with a negative net margin (-28.65%), negative ROE (-19.7%) and a high debt-to-equity ratio (2.39).
• Analyst sentiment is mixed: MarketBeat shows an average rating of "Hold" with a consensus target of $14 after RBC raised its price target to $14 and gave an "Outperform," while Weiss Ratings remains a "Sell"; institutional ownership is high (~68.6%) with several funds increasing stakes.

Rayonier Advanced Materials Inc. (NYSE:RYAM - Get Free Report)'s share price dropped 5.2% during trading on Monday . The stock traded as low as $9.95 and last traded at $10.0730. Approximately 184,291 shares were traded during trading, a decline of 83% from the average daily volume of 1,053,600 shares. The stock had previously closed at $10.62.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on RYAM. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Rayonier Advanced Materials in a research note on Thursday, January 22nd. Wall Street Zen raised shares of Rayonier Advanced Materials from a "sell" rating to a "hold" rating in a research report on Saturday, February 21st. Finally, Royal Bank Of Canada boosted their price target on shares of Rayonier Advanced Materials from $9.00 to $14.00 and gave the company an "outperform" rating in a report on Thursday, March 5th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Rayonier Advanced Materials currently has an average rating of "Hold" and a consensus target price of $14.00.

Rayonier Advanced Materials Price Performance

The firm has a market capitalization of $689.80 million, a PE ratio of -1.62 and a beta of 2.03. The company has a debt-to-equity ratio of 2.39, a quick ratio of 0.92 and a current ratio of 1.58. The stock has a fifty day moving average price of $9.51 and a 200-day moving average price of $7.73.

Rayonier Advanced Materials (NYSE:RYAM - Get Free Report) last issued its quarterly earnings data on Tuesday, March 3rd. The basic materials company reported ($0.28) earnings per share for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.19). The company had revenue of $417.55 million for the quarter, compared to the consensus estimate of $364.07 million. Rayonier Advanced Materials had a negative net margin of 28.65% and a negative return on equity of 19.70%. Sell-side analysts forecast that Rayonier Advanced Materials Inc. will post -0.08 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. American Century Companies Inc. grew its stake in shares of Rayonier Advanced Materials by 6.1% during the third quarter. American Century Companies Inc. now owns 2,721,075 shares of the basic materials company's stock worth $19,646,000 after acquiring an additional 155,268 shares during the last quarter. Nantahala Capital Management LLC boosted its stake in Rayonier Advanced Materials by 252.6% in the 4th quarter. Nantahala Capital Management LLC now owns 1,800,000 shares of the basic materials company's stock worth $10,602,000 after purchasing an additional 1,289,490 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in Rayonier Advanced Materials by 26.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,687,949 shares of the basic materials company's stock worth $9,942,000 after purchasing an additional 348,589 shares during the last quarter. Geode Capital Management LLC grew its position in Rayonier Advanced Materials by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 1,548,346 shares of the basic materials company's stock worth $9,122,000 after purchasing an additional 9,234 shares during the last quarter. Finally, Millennium Management LLC increased its stake in Rayonier Advanced Materials by 177.3% during the 3rd quarter. Millennium Management LLC now owns 1,359,752 shares of the basic materials company's stock valued at $9,817,000 after purchasing an additional 869,486 shares in the last quarter. 68.64% of the stock is currently owned by hedge funds and other institutional investors.

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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