A new SEC filing reveals that Gregg Gonsalves, Director at Rayonier RYN, made a notable insider purchase on May 20,.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Gonsalves purchased 5,170 shares of Rayonier. The total transaction amounted to $125,010.
The latest update on Tuesday morning shows Rayonier shares down by 0.02%, trading at $24.04.
Discovering Rayonier: A Closer Look
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.
Understanding the Numbers: Rayonier’s Finances
Decline in Revenue: Over the 3 months period, Rayonier faced challenges, resulting in a decline of approximately -27.07% in revenue growth as of 31 March, 2025. This signifies a reduction in the company’s 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.
Holistic Profitability Examination:
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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): Rayonier’s EPS is below the industry average. The company faced challenges with a current EPS of -0.02. This suggests a potential decline in earnings.
Debt Management: Rayonier’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.55.
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): 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: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
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Why Insider Transactions Are Important
Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Important Transaction Codes
Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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.
