From Yahoo Finance: 2025-06-09 09:31:00

Rayonier Advanced Materials Inc. (RYAM) is a cyclical industrial company focused on cellulose specialties. While its stock has tripled multiple times over the past five years, it currently trades at $3.74. CEO Delyle Bloomquist recently purchased $250,000 worth of shares at $3.95, signaling insider confidence in the company.

Despite potential near-term downside, RYAM’s long-term upside remains intact due to global demand for cellulose-based products. Investors view RYAM as a trading vehicle with rapid recovery potential, historically rebounding to around $10 during upcycles. However, the company’s $700 million debt and interest coverage ratio of 1.56x remains a concern.

Despite not being among the 30 Most Popular Stocks Among Hedge Funds, 22 hedge fund portfolios held RYAM at the end of the first quarter. While RYAM presents investment potential, some AI stocks may offer higher returns with limited downside risk. For those seeking an extremely cheap AI stock, a free report on the best short-term AI stock is available.

Read more: Rayonier Advanced Materials Inc. (RYAM): A Bull Case Theory