American Century Boosts Stake in Rayonier Advanced Materials by 11.8%

American Century Companies Inc. has increased its holdings in Rayonier Advanced Materials Inc. (NYSE: RYAM) by 11.8% during the first quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). The institutional investor now owns 2,425,104 shares of the basic materials company, having acquired an additional 255,784 shares during this period. This acquisition brings American Century’s total ownership to approximately 3.63% of Rayonier Advanced Materials, valued at around $13.9 million.

This adjustment in holdings reflects a broader trend among institutional investors regarding Rayonier Advanced Materials. The New York State Teachers Retirement System recently acquired a new stake in the company valued at approximately $34,000. Additionally, Royce & Associates LP purchased a stake worth around $103,000, while Walleye Capital LLC invested about $113,000 in the fourth quarter of 2022. Notably, HSBC Holdings PLC increased its stake by 36.6% during the same quarter, now holding 14,367 shares valued at $117,000. Currently, institutional investors own approximately 68.64% of the company’s stock.

Analyst Ratings and Stock Performance

Recent analyst evaluations have varied significantly for Rayonier Advanced Materials. As of May 15, 2023, Wall Street Zen downgraded the stock from a “buy” rating to a “hold” rating. Conversely, Zacks Research classified it as a “strong sell” in its report on August 8, 2023. Furthermore, Royal Bank of Canada reduced its target price from $9.00 to $6.00 but maintained an “outperform” rating. Currently, one investment analyst has issued a Buy rating, while another has a Sell rating, leading to a consensus rating of “Hold” and an average target price of $6.00.

On August 5, 2023, Rayonier Advanced Materials reported disappointing quarterly earnings, posting a loss of ($0.43) per share, which fell short of the consensus estimate of ($0.20) by ($0.23). The company reported revenues of $340 million, compared to the expected $387.07 million. With a negative net margin of 29.23% and a negative return on equity of 12.11%, analysts project an EPS of ($0.08) for the current year.

As of the latest trading session, Rayonier Advanced Materials stock opened at $5.38, reflecting a decline of 3.4%. The stock currently holds a market capitalization of $360.46 million, with a P/E ratio of -0.81. The company’s twelve-month low is $3.35, while its high stands at $10.28.

Insider Activity

In a notable insider transaction, CEO Delyle W. Bloomquist purchased 53,533 shares on August 12, 2023. The shares were acquired at an average price of $4.71 each, amounting to a total investment of $252,140.43. Following this acquisition, Bloomquist now holds 539,557 shares in the company, valued at approximately $2.54 million, representing an increase of 11.01% in his ownership stake. This transaction has been formally disclosed in an SEC document.

About Rayonier Advanced Materials

Rayonier Advanced Materials Inc. specializes in the manufacture and sale of cellulose specialty products, serving markets in the United States, China, Canada, Japan, Europe, and Latin America. The company’s operations are divided into three segments: High Purity Cellulose, Paperboard, and High-Yield Pulp. Its product offerings include natural polymers utilized in various consumer goods, such as liquid crystal displays, pharmaceuticals, and impact-resistant plastics.

As the landscape of institutional investment shifts, the developments surrounding Rayonier Advanced Materials underscore the ongoing interest and scrutiny from major investors, analysts, and market participants alike.