Why Rayonier Advanced Materials Inc. (RYAM) Is An Unattractive Stock Today

Rayonier Advanced Materials Inc. (NYSE:RYAM) is a stock to watch today. At current price of $4.52, the shares have already lost -0.34 points (-7% lower) from its previous close of $4.86. The stock sets an active trading volume day with a reported 334260 contracts so far this session. RYAM shares had a relatively better volume day versus average trading capacity of 1.27 million shares, but with a 48.32 million float and a 39.66% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for RYAM stock indicates that the average analyst price target is $10.07 per share. This means the stock has a potential increase of 122.79% from where the RYAM share price has been trading recently which is between $4.27 and $4.9. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $3.3.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Rayonier Advanced Materials Announces Suspension of Dividend on Its Common Stock” and dated September 06, 2019.

During the recent trading session for Rayonier Advanced Materials Inc. (NYSE:RYAM), the company witnessed their stock rise $0.7 over a week and surge $1.75 from the price 20 days ago. When compared to their established 52-week high of $22.07, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 09/13/18. The recent low of $2.5 stood for a -79.52% since 08/15/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 3.72 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Rayonier Advanced Materials Inc., the two-week RSI stands at 61.38. This figure suggests that RYAM stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current RYAM readings is similarly very revealing as it has a stochastic reading of 91.82% at this stage. This figure means that RYAM share price today is being oversold.

Technical chart claims that Rayonier Advanced Materials Inc. (RYAM) would settle between $5.08/share to $5.31/share level. However, if the stock price goes below the $4.45 mark, then the market for Rayonier Advanced Materials Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $4.05 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.61. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Sidoti lowered their recommendation on shares of RYAM from Buy to Neutral in their opinion released on August 08. BofA/Merrill analysts have lowered their rating of Rayonier Advanced Materials Inc. (NYSE:RYAM) stock from Buy to Underperform in a separate flash note issued to investors on August 08. Analysts at Berenberg, made their first call for the equity with a Buy recommendation, according to a research note that dated back to July 12.

RYAM equity has an average rating of 2.67, with the figure leaning towards a bullish end. 3 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 2 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 1 analysts rated Rayonier Advanced Materials Inc. (NYSE:RYAM) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, RYAM stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is NA while for the average stock in the same group, the multiple is 10.45. Rayonier Advanced Materials Inc. current P/B ratio of 0.36 means it is trading at a discount against its industry’s 1.3.

Rayonier Advanced Materials Inc. (RYAM)’s current-quarter revenues are projected to climb by nearly -4.41% to hit $520000, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -5.94% from $2.13 billion to a noteworthy $2.01 billion. At the other end of the current quarter income statement, Rayonier Advanced Materials Inc. is expected to see its adjusted earnings surge by roughly -125.93% to hit $-0.14 per share. For the fiscal year, RYAM’s earnings are projected to climb by roughly -157.99% to hit $-0.98 per share.