Rayonier Advanced Materials (RYAM) Raised to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Rayonier Advanced Materials (NYSE:RYAM) from a hold rating to a buy rating in a research note published on Tuesday. The brokerage currently has $16.00 price target on the basic materials company’s stock.

According to Zacks, “Rayonier Advanced Materials Inc. operates as a global supplier of cellulose specialties products, a natural polymer for the chemical industry. Its products include cellulose specialties primarily used in dissolving chemical applications; commodity viscose used in the manufacture of textiles for clothing and other fabrics, and in non-woven applications; absorbent materials comprising fibers for absorbent hygiene products and other products. Rayonier’s products are used in a wide range of industrial and consumer products such as filters, cosmetics and pharmaceuticals. The Company’s production facilities are located primarily in Jesup, Georgia, and Fernandina Beach, Florida. Rayonier Advanced Materials Inc. is headquartered in Jacksonville, Florida. “

Several other brokerages have also recently commented on RYAM. Bank of America reduced their price target on Rayonier Advanced Materials from $26.00 to $24.00 and set a buy rating for the company in a research report on Monday. Berenberg Bank initiated coverage on Rayonier Advanced Materials in a research report on Thursday, July 12th. They set a buy rating and a $25.00 price target for the company. Finally, ValuEngine raised Rayonier Advanced Materials from a hold rating to a buy rating in a research report on Wednesday, July 18th. Two research analysts have rated the stock with a sell rating and four have given a buy rating to the company’s stock. The company has an average rating of Hold and a consensus price target of $21.25.

Shares of RYAM stock traded down $0.02 on Tuesday, hitting $13.40. 8,894 shares of the stock were exchanged, compared to its average volume of 1,017,523. Rayonier Advanced Materials has a fifty-two week low of $13.31 and a fifty-two week high of $22.96. The company has a debt-to-equity ratio of 1.64, a current ratio of 2.17 and a quick ratio of 1.15. The stock has a market capitalization of $716.47 million, a P/E ratio of 13.84, a P/E/G ratio of 0.33 and a beta of 3.46.

Rayonier Advanced Materials (NYSE:RYAM) last issued its quarterly earnings results on Thursday, August 2nd. The basic materials company reported $0.60 EPS for the quarter, beating the consensus estimate of $0.53 by $0.07. Rayonier Advanced Materials had a return on equity of 17.08% and a net margin of 23.97%. The firm had revenue of $542.00 million during the quarter, compared to analysts’ expectations of $544.22 million. During the same period in the prior year, the firm posted $0.11 earnings per share. The business’s quarterly revenue was up 169.7% compared to the same quarter last year. Equities analysts expect that Rayonier Advanced Materials will post 2.17 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 31st. Shareholders of record on Monday, December 17th will be paid a $0.07 dividend. The ex-dividend date of this dividend is Friday, December 14th. This represents a $0.28 annualized dividend and a yield of 2.09%. Rayonier Advanced Materials’s dividend payout ratio is 28.87%.

A number of large investors have recently added to or reduced their stakes in RYAM. Great West Life Assurance Co. Can increased its stake in shares of Rayonier Advanced Materials by 3.9% during the second quarter. Great West Life Assurance Co. Can now owns 65,859 shares of the basic materials company’s stock worth $1,125,000 after purchasing an additional 2,497 shares during the period. State of Tennessee Treasury Department increased its stake in shares of Rayonier Advanced Materials by 8.1% during the first quarter. State of Tennessee Treasury Department now owns 37,355 shares of the basic materials company’s stock worth $802,000 after purchasing an additional 2,797 shares during the period. MetLife Investment Advisors LLC increased its stake in shares of Rayonier Advanced Materials by 19.6% during the first quarter. MetLife Investment Advisors LLC now owns 22,944 shares of the basic materials company’s stock worth $493,000 after purchasing an additional 3,768 shares during the period. The Manufacturers Life Insurance Company increased its stake in shares of Rayonier Advanced Materials by 11.7% during the first quarter. The Manufacturers Life Insurance Company now owns 36,875 shares of the basic materials company’s stock worth $792,000 after purchasing an additional 3,875 shares during the period. Finally, Legal & General Group Plc increased its stake in shares of Rayonier Advanced Materials by 3.9% during the first quarter. Legal & General Group Plc now owns 104,168 shares of the basic materials company’s stock worth $2,232,000 after purchasing an additional 3,934 shares during the period. Hedge funds and other institutional investors own 98.22% of the company’s stock.

About Rayonier Advanced Materials

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

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