Rayonier Advanced Materials Insiders Added US$680.0k Of Stock To Their Holdings
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Rayonier Advanced Materials Inc. (NYSE:RYAM), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Rayonier Advanced Materials
Rayonier Advanced Materials Insider Transactions Over The Last Year
The President De Lyle Bloomquist made the biggest insider purchase in the last 12 months. That single transaction was for US$268k worth of shares at a price of US$4.47 each. That implies that an insider found the current price of US$4.50 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 insiders were buying at near the current price.
Rayonier Advanced Materials insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Rayonier Advanced Materials Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Rayonier Advanced Materials insiders own 3.7% of the company, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Rayonier Advanced Materials Insiders?
The fact that there have been no Rayonier Advanced Materials insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Rayonier Advanced Materials and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rayonier Advanced Materials. To that end, you should learn about the 2 warning signs we've spotted with Rayonier Advanced Materials (including 1 which is a bit unpleasant).
Of course Rayonier Advanced Materials may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
