Zacks Research Downgrades Rayonier Advanced Materials (NYSE:RYAM) to Strong Sell

Key Points

• Zacks Research has downgraded Rayonier Advanced Materials from a "hold" rating to a "strong sell" rating, reflecting growing concerns about the company's performance.
• Rayonier Advanced Materials reported a loss of $0.43 per share, missing analysts' expectations and indicating significant operational challenges.
• Insider activity saw CEO Delyle W. Bloomquist buy 53,533 shares, raising his stake in the company by 11.01%, despite overall negative sentiment around the stock.

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 note issued on Monday,Zacks.com reports.

Separately, Weiss Ratings reissued a "sell (d-)" rating on shares of Rayonier Advanced Materials in a research report on Wednesday, October 8th. One research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Rayonier Advanced Materials has an average rating of "Reduce" and a consensus price target of $6.00.

Rayonier Advanced Materials Stock Performance

Shares of RYAM stock opened at $7.37 on Monday. The stock has a market capitalization of $493.46 million, a PE ratio of -1.10 and a beta of 2.64. The business's 50 day simple moving average is $6.13 and its 200 day simple moving average is $4.88. The company has a debt-to-equity ratio of 2.10, a current ratio of 1.45 and a quick ratio of 0.83. Rayonier Advanced Materials has a one year low of $3.35 and a one year high of $10.28.

Rayonier Advanced Materials (NYSE:RYAM - Get Free Report) last released its earnings results on Tuesday, August 5th. The basic materials company reported ($0.43) earnings per share for the quarter, missing analysts' consensus estimates of ($0.20) by ($0.23). The firm had revenue of $340.00 million for the quarter, compared to analyst estimates of $387.07 million. Rayonier Advanced Materials had a negative net margin of 29.23% and a negative return on equity of 12.11%. As a group, research analysts forecast that Rayonier Advanced Materials will post -0.08 earnings per share for the current year.

Insider Activity

In related news, CEO Delyle W. Bloomquist purchased 53,533 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was bought at an average price of $4.71 per share, for a total transaction of $252,140.43. Following the purchase, the chief executive officer directly owned 539,557 shares in the company, valued at approximately $2,541,313.47. This trade represents a 11.01% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 4.41% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Rayonier Advanced Materials

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. SummerHaven Investment Management LLC raised its stake in Rayonier Advanced Materials by 2.4% in the 2nd quarter. SummerHaven Investment Management LLC now owns 144,165 shares of the basic materials company's stock valued at $555,000 after acquiring an additional 3,382 shares during the period. New York State Teachers Retirement System bought a new stake in Rayonier Advanced Materials in the 1st quarter valued at about $34,000. Martingale Asset Management L P grew its holdings in Rayonier Advanced Materials by 12.8% during the 1st quarter. Martingale Asset Management L P now owns 56,629 shares of the basic materials company's stock valued at $326,000 after buying an additional 6,428 shares in the last quarter. Osaic Holdings Inc. grew its holdings in Rayonier Advanced Materials by 754.4% during the 2nd quarter. Osaic Holdings Inc. now owns 7,963 shares of the basic materials company's stock valued at $31,000 after buying an additional 7,031 shares in the last quarter. Finally, Cubist Systematic Strategies LLC grew its holdings in Rayonier Advanced Materials by 2.8% during the 1st quarter. Cubist Systematic Strategies LLC now owns 292,569 shares of the basic materials company's stock valued at $1,682,000 after buying an additional 7,884 shares in the last quarter. 68.64% of the stock is currently owned by institutional investors.

About Rayonier Advanced Materials

Rayonier Advanced Materials Inc manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company's products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers.

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