Investors who take an interest in Rayonier Advanced Materials Inc. (NYSE:RYAM) should definitely note that the Chairman, Paul Boynton, recently paid US$3.63 per share to buy US$363k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 20%.
The Last 12 Months Of Insider Transactions At Rayonier Advanced Materials
In fact, the recent purchase by Paul Boynton was the biggest purchase of Rayonier Advanced Materials shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$4.35 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Rayonier Advanced Materials share holders is that an insider was buying at near the current price. Paul Boynton was the only individual insider to buy over the year.
Paul Boynton purchased 110000 shares over the year. The average price per share was US$4.55. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Rayonier Advanced Materials is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.7% of Rayonier Advanced Materials shares, worth about US$7.4m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Rayonier Advanced Materials Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Rayonier Advanced Materials stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Rayonier Advanced Materials.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.