On May 20, Justice Matthew Rivers, Board Member at Rayonier RYN executed a significant insider buy, as disclosed in the latest SEC filing.
What Happened: Rivers demonstrated confidence in Rayonier by purchasing 5,170 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the transaction is $125,010.
As of Tuesday morning, Rayonier shares are down by 0.0%, currently priced at $24.04.
Unveiling the Story Behind Rayonier
Rayonier owns and manages over 2 million acres of timberland in the United States. It is one the largest private landowners in North America. The firm also owns timberland in New Zealand. Rayonier is structured as a real estate investment trust and is not required to pay federal income taxes on earnings generated by timber harvest activities.
Breaking Down Rayonier’s Financial Performance
Revenue Challenges: Rayonier’s revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -27.07%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Real Estate sector.
Key Insights into Profitability Metrics:
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Gross Margin: The company shows a low gross margin of 21.67%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Rayonier exhibits below-average bottom-line performance with a current EPS of -0.02.
Debt Management: Rayonier’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.55.
Valuation Analysis:
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Price to Earnings (P/E) Ratio: The P/E ratio of 10.1 is lower than the industry average, implying a discounted valuation for Rayonier’s stock.
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Price to Sales (P/S) Ratio: With a P/S ratio of 2.99 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio of 8.47 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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The Relevance of Insider Transactions
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Exploring Key Transaction Codes
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Rayonier’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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