President of Rayonier Advanced Materials Picks Up 15% More Stock

Investors who take an interest in Rayonier Advanced Materials Inc. (NYSE:RYAM) should definitely note that the President, De Lyle Bloomquist, recently paid US$3.95 per share to buy US$250k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 15%.

We've discovered 1 warning sign about Rayonier Advanced Materials. View them for free.

Rayonier Advanced Materials Insider Transactions Over The Last Year

Notably, that recent purchase by De Lyle Bloomquist is the biggest insider purchase of Rayonier Advanced Materials shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$3.97. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Rayonier Advanced Materials insiders decided to buy shares at close to current prices.

While Rayonier Advanced Materials insiders bought shares during the last year, they didn't sell. Their average price was about US$4.62. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Rayonier Advanced Materials

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

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. It appears that Rayonier Advanced Materials insiders own 4.6% of the company, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Rayonier Advanced Materials Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Rayonier Advanced Materials insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rayonier Advanced Materials. Case in point: We've spotted 1 warning sign for Rayonier Advanced Materials you should be aware of.

But note: Rayonier Advanced Materials may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.