Rayonier Advanced Materials (NYSE:RYAM) Stock Price Up 10% - Should You Buy?

Key Points

• RYAM shares rose 10% to $9.64 in midday trading, outperforming its recent moving averages, though trading volume was below average.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating, with one Buy and two Sell ratings, and an average price target of $13.00.
• The company reported a quarterly loss of $0.30 per share, missing estimates of a $0.22 loss, while maintaining weak profitability metrics, including a negative net margin of 32.86% and a debt-to-equity ratio of 3.21.

Rayonier Advanced Materials Inc. (NYSE:RYAM - Get Free Report) rose 10% on Wednesday . The stock traded as high as $9.66 and last traded at $9.64. 793,383 shares changed hands during mid-day trading, a decline of 24% from the average session volume of 1,043,090 shares. The stock had previously closed at $8.76.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on RYAM. Zacks Research cut Rayonier Advanced Materials from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 7th. Royal Bank Of Canada reduced their target price on Rayonier Advanced Materials from $14.00 to $13.00 and set an "outperform" rating for the company in a report on Friday, July 17th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rayonier Advanced Materials in a research report on Friday, July 17th. Finally, Wall Street Zen raised shares of Rayonier Advanced Materials from a "sell" rating to a "hold" rating in a report on Monday, July 20th. One research analyst has rated the stock with a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Rayonier Advanced Materials presently has an average rating of "Reduce" and an average target price of $13.00.

Rayonier Advanced Materials Trading Up 9.8%

The stock has a market cap of $648.43 million, a PE ratio of -1.38 and a beta of 1.77. The company has a current ratio of 1.37, a quick ratio of 0.79 and a debt-to-equity ratio of 3.21. The firm has a fifty day simple moving average of $8.25 and a two-hundred day simple moving average of $8.98.

Rayonier Advanced Materials (NYSE:RYAM - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The basic materials company reported ($0.30) EPS for the quarter, missing analysts' consensus estimates of ($0.22) by ($0.08). The company had revenue of $376.14 million during the quarter, compared to analysts' expectations of $362.00 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 expect that Rayonier Advanced Materials Inc. will post -1.16 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Rayonier Advanced Materials

A number of large investors have recently added to or reduced their stakes in RYAM. Osaic Holdings Inc. lifted its stake in Rayonier Advanced Materials by 754.4% during the second quarter. Osaic Holdings Inc. now owns 7,963 shares of the basic materials company's stock worth $31,000 after purchasing an additional 7,031 shares during the last quarter. Graham Capital Management L.P. bought a new position in shares of Rayonier Advanced Materials during the 4th quarter valued at about $76,000. Dynamic Technology Lab Private Ltd purchased a new position in shares of Rayonier Advanced Materials during the 4th quarter valued at about $86,000. Balyasny Asset Management L.P. purchased a new position in shares of Rayonier Advanced Materials during the 4th quarter valued at about $117,000. Finally, Police & Firemen s Retirement System of New Jersey lifted its position in Rayonier Advanced Materials by 39.5% in the 4th quarter. Police & Firemen s Retirement System of New Jersey now owns 20,198 shares of the basic materials company's stock worth $119,000 after buying an additional 5,721 shares during the last quarter. 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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