Disclosed in the latest SEC filing, a significant insider purchase on May 20, involves KEITH BASS, Director at Rayonier RYN.
What Happened: BASS made a significant move by purchasing 5,170 shares of Rayonier as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction’s total worth stands at $125,010.
In the Tuesday’s morning session, Rayonier‘s shares are currently trading at $24.04, experiencing a down of 0.02%.
Delving into Rayonier’s Background
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.
Unraveling the Financial Story of Rayonier
Negative Revenue Trend: Examining Rayonier’s financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -27.07% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.
Evaluating Earnings Performance:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 21.67%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): Rayonier’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.02.
Debt Management: With a below-average debt-to-equity ratio of 0.55, Rayonier adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding Financial Valuation:
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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: The current P/S ratio of 2.99 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 8.47, Rayonier presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
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Unmasking the Significance of Insider Transactions
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Transaction Codes Worth Your Attention
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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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