Rayonier Advanced Materials Sees Unusually Large Options Volume (NYSE:RYAM)

Key Points

• Unusual options activity: Investors bought 3,702 put options on RYAM — a 123% increase versus the average — indicating elevated bearish bets or hedging interest.
• Mixed fundamentals and outlook: Shares were up 4.9% to $9.65, but Rayonier posted an EPS miss (−$0.28 vs. −$0.09 expected) despite revenue beating estimates, carries negative margins/ROE, and has a consensus analyst target of $14 amid split ratings.

Rayonier Advanced Materials Inc. (NYSE:RYAM - Get Free Report) was the recipient of some unusual options trading on Wednesday. Investors bought 3,702 put options on the company. This is an increase of 123% compared to the average volume of 1,661 put options.

Rayonier Advanced Materials Trading Up 4.9%

Shares of Rayonier Advanced Materials stock traded up $0.45 during midday trading on Wednesday, reaching $9.65. The company had a trading volume of 814,554 shares, compared to its average volume of 1,102,950. The stock has a fifty day moving average price of $9.87 and a 200 day moving average price of $7.94. The company has a debt-to-equity ratio of 2.39, a current ratio of 1.58 and a quick ratio of 0.92. The firm has a market cap of $650.18 million, a PE ratio of -1.53 and a beta of 2.03. Rayonier Advanced Materials has a fifty-two week low of $3.35 and a fifty-two week high of $11.85.

Rayonier Advanced Materials (NYSE:RYAM - Get Free Report) last posted its quarterly earnings data on Tuesday, March 3rd. The basic materials company reported ($0.28) EPS for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.19). The company had revenue of $417.55 million during the quarter, compared to analyst estimates of $364.07 million. Rayonier Advanced Materials had a negative return on equity of 19.70% and a negative net margin of 28.65%. On average, equities analysts anticipate that Rayonier Advanced Materials will post -0.66 earnings per share for the current year.

Analyst Ratings Changes

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

Hedge Funds Weigh In On Rayonier Advanced Materials

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Nantahala Capital Management LLC increased its holdings in Rayonier Advanced Materials by 252.6% in the fourth 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. Millennium Management LLC increased its holdings in Rayonier Advanced Materials by 177.3% in the third quarter. Millennium Management LLC now owns 1,359,752 shares of the basic materials company's stock worth $9,817,000 after purchasing an additional 869,486 shares in the last quarter. UBS Group AG increased its holdings in Rayonier Advanced Materials by 156.9% in the third quarter. UBS Group AG now owns 783,465 shares of the basic materials company's stock worth $5,657,000 after purchasing an additional 478,500 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in Rayonier Advanced Materials by 62.8% in the fourth quarter. JPMorgan Chase & Co. now owns 968,757 shares of the basic materials company's stock worth $5,706,000 after purchasing an additional 373,522 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in Rayonier Advanced Materials by 26.0% in the fourth 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 in the last quarter. 68.64% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.