The housing market is still going strong, and one way investors can play it is through Rayonier Timber stock. The timberland company is based in the southern U.S., one of the strongest markets for housing. On top of this, Rayonier Inc. (NYSE: RYN) is the second largest timberland REIT with around 2.7 million acres.
Not only is Rayonier a way for investors to gain exposure to the wood industry, but it also controls a growing real estate segment. The diverse portfolio mix gives the company a strong position in their market.
As demand for housing remains strong, the company is capitalizing on the increase. But, can the company keep up the rapid growth if housing slows?
Rayonier stock is up over 90% since its lows in March 2020. Keep reading to see how it plans to keep rewarding investors.
What Does Rayonier Do?
You may be wondering what a timberland REIT is. Rather than profiting from real estate such as buildings, a timberland REIT manages, well, you guessed it, timberlands. In fact, the company is the fourth largest private owner in the U.S.
It has two main areas in timberland and real estate.
Rayonier’s timber segment is its primary revenue stream. The company invests and manages the land. In fact, Rayonier stock was established as a “pure-play” timberland company. Meaning it’s a way to invest in the market.
The company isn’t involved in other forestry services like paper so they can focus on a single cause. Thus, investors benefit when there’s high demand for timber products, such as in today’s case.
Additionally, it controls three segments. These include Southern Timber, Pacific Northwest Timber, and New Zealand Timber.
When you think of real estate, many investors assume homes or rentals. But, in Rayonier’s case, it deals with timberland forests. Moreover, the company will sell its land for a better opportunity. It will also buy land when the opportunity is there. For example, the company can use its real estate property for things like:
- Higher or better usage (HBU)
- As an investment or,
- For renting purposes
This gives them the flexibility to sell property when they need cash. On the other hand, it also trades logs to enhance profits.
Rayonier’s Stock is in a Trending Industry
Rayonier stock and the timberland industry are trending on Wall St. Investors continue to profit from the rising demand for wood. In particular, the strong housing market is helping boost Rayonier’s earnings. Here are a few trends shaping the industry.
1) Demand for Real Estate
The most important trend influencing the industry and Rayonier stock is the high demand for homes. New information from the U.S Census Bureau shows that housing starts increased another 17.4% last month. Also, existing-home sales decreased by 2% in August. The trend suggests people are not selling homes as much as building new ones.
The news is positive for Rayonier shareholders as it can help boost the company’s business.
2) Technological Advancements
Advancements in tech are also a part of the company’s growth. High tech equipment like drones make it easier for companies to manage their land.
As the land is more efficiently used, it can help to increase profit margins.
3) Supply Chain Challenges
The pandemic is still causing issues across the globe. Not to mention events like hurricanes and wildfires can also slow production.
On top of this, the pandemic caused the company to halt operations in New Zealand due to government requirements. The stoppage was a big loss for the company as it had to close its doors for over a month.
Striving for Sustainability
A particular area of focus is sustainability. And it’s a good thing because the forest industry is critical for the future. With over 2.7 million acres of land, the company holds a lot of responsibility. Forest management has many aspects. It involves maintaining soil quality, protecting the species that lives there, and more.
Rayonier is heavily investing in the future of forestry by training employees to improve forest quality. Furthermore, the practice helps them support a growing need for wood.
On top of this, forests play a big role in maintaining carbon levels. As countries like the U.S are targetting to achieve carbon neutrality by 2050, Rayonier’s industry plays an increasingly important role.
How Rayonier Stock Can Benefit Shareholders
If you’re thinking, “okay, that’s great and all, but how does the company plan on generating returns?” You’re in luck, because as a REIT, the company’s purpose is to create value for Rayonier stock shareholders.
Rayonier is investing to make the company more profitable. Here’s how they plan on doing so.
- Active Portfolio Management. By investing in and selling at the right time, the company can maximize value. For instance, its latest acquisition gives them access to more timberlands in high-demand areas.
- Long Term Approach. Through sustainability efforts, it focuses on a long-term approach to forestry. The strategies will likely pay off in the future as many forests are being depleted.
- Diverse Lands. Rayonier does business in two of the fastest-growing housing areas in the south and the western U.S. It also operates in New Zealand. The variety helps the company overcome challenges like extreme weather events.
- Balanced Market. The company has a good balance of buyers. It currently caters 33% in the U.S, 39% export and another 28% are traded.
On top of all this, it also offers an attractive dividend for investors. The company currently offers a dividend of $0.27 paid quarterly. In other words, a dividend yield of just over 3%.
Rayonier Stock Forecast
The big question surrounding Rayonier is will demand for housing stay high. Already up 24% on the year, RYN stock looks to continue growing.
If the strength in housing can continue, investors should continue to see the rewards. The company’s mission to create value for shareholders is starting to pay off, with revenue growing 40% YOY to 291.4 million in the second quarter.
But, if the housing market cools off and there’s less demand for wood, investors could continue to see volatility. In this case, investors should be prepared for a lower return because the share price is up on strong demand for its products.
For more on Rayonier stock, timber stocks and other trending industries, sign up for Trade of the Day. This complementary newsletter will help you stay up-to-date on all of the latest investment news. Start making better trades today!
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Udemy IPO: EdTech Unicorn Filing Information for Investors
Paperwork for the Udemy IPO is now public. The online learning platform is going public on the Nasdaq under the ticker UDMY. Here’s the latest news…
The post Udemy IPO: EdTech Unicorn Filing Information for Investors appeared first on Investment U.
Paperwork for the Udemy IPO is now public for investors. The online learning platform is going public on the Nasdaq under the ticket UDMY. Let’s look at the details…
Udemy IPO: About the Business
Eren Bali, Oktay Caglar and Gagan Biyani founded Udemy in 2010. The three partnered together to achieve a common goal: make quality education accessible to all. The solution was to develop an online learning platform targeted at students and professionals.
Udemy is a massive open online course provider today. The platform has a two-sided marketplace where instructors develop content to meet learner demand. The learning experience combines videos, notes and assessment tests into a series of modules.
The San Francisco-based company has a client base of over 44 million learners in more than 180 countries. Udemy offers over 183,000 courses in 75 languages. Over 73 million users have registered on Udemy since its launch.
Courses are available directly to consumers. The company also offers UDemy Business as its B2B (business to business) learning solution. Organizations can use it to train and develop their employees. 42% of Fortune 100 companies use Udemy Business, according to the filing.
In response to the pandemic, industries have needed to acquire new skills. And ongoing changes in the workplace could make the Udemy IPO an interesting prospect.
Pandemic Accelerates Industries’ Need for New Skills
Changing technologies and new working methods have impacted jobs across the board and made it difficult for workers to keep up. Adapting to rapidly changing conditions is an ongoing challenge for workers across all industries. The roles and activities of workers will have to adapt to new conditions.
The revolution goes far beyond remote working, AI and the use of automated systems. Many people have found a new normal in the workplace. And leaders will need to reskill their workers to deliver new business models in a post-pandemic era.
In a 2021 Workplace Learning Trends Report, Udemy revealed that industries have increased demand for data analysis and data science training.
Data shows companies increased their data modeling training by 466% between 2019 and 2020. In addition, there was an increase of 1,488% in data warehouse training.
This represents a major focus on skills development and continued learning in business. However, the pandemic has affected Udemy in far more ways than just its business platform.
COVID-19 is Reshaping Education Long-Term
A 2020 Udemy report revealed that online education demand increased across all segments as a result of COVID-19. Here are some of the key findings…
- 425% increase in enrollments for consumers
- 55% increase in course creation by instructors
- 80% increase in usage from businesses
Udemy’s prospectus states…
Before the COVID-19 pandemic, the majority of corporate training occurred offline, and we believe that online education is well placed to address the scalability and affordability limitations of offline education. With the increase of internet connectivity, technological advances and interactive tools at a low cost, we expect a massive shift from offline to online.
A 2020 report showed that course enrollments across the Udemy platform grew more than 425% after the first shelter-in-place order took effect. Online learning trends emerged due to the pandemic.
Some of these changes may give a preview of more permanent changes in the way we learn and work in the post-pandemic era. And these trends reflect in Udemy’s revenue and cash flow. Let’s review the company’s finances…
Udemy IPO Financial Data
Revenue: The filing revealed an upswing in revenue. Udemy recorded $276.3 million in revenue for the 2019 fiscal year. In 2020, Udemy’s revenue rose 56% to $429.9 million for the year. Revenue is on track to keep increasing this year. For the six months ended June 2021, the company reported $250.6 million in revenue.
Net Income (Loss): Udemy has reported consistent net losses. For the 2019 fiscal year, the company recorded $69.7 million in net losses. Udemy’s net losses rose to $77.6 million in 2020. For the six months ended July 2021, the company reported $29.4 million net losses. Udemy’s net losses for the half-year ended June 2020 were already $42.5 million, so 2021 should hopefully see declining losses.
Cash: Udemy recorded a massive increase in cash flow in 2020. The company recorded $49.1 million in cash as of December 2019. By the end of 2020, cash skyrocketed to over $175 million. However, the company’s cash decreased to $163.2 million as of June 2021.
Total Assets and Total Liabilities: Udemy’s total assets and total liabilities have grown. The company recorded $117.3 million in total assets and $187.2 million in total liabilities as of December 2019. As of June 30, Udemy’s total assets rose to $286.7 million and total liabilities rose to $279.2 million.
Filing Details for UDMY Stock
Udemy filed confidentially on May 26. The paperwork became public for investors on October 5. However, the company hasn’t set terms for the offering yet. Check out this step-by-step guide to going public to learn more about the initial public offering process.
The company hasn’t announced the number of shares it plans to offer or an expected pricing range for the IPO. Udemy will trade on the Nasdaq exchange under the ticker symbol UDMY.
While the exact terms of the offering are unknown, the company has set a placeholder deal size of $100 million. As a matter of fact, the company is rumored to be targeting an initial valuation of between $6 billion and $8 billion.
As always, make sure to research before you invest. IPOs can be volatile for the first few months and share prices are constantly changing. Moreover, if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and filed IPOs.
If you’re looking for the latest investment opportunities, consider signing up for Liberty Through Wealth. This free e-letter is full of market insights from leading experts. You’ll hear from bestselling author and investment expert Alexander Green. It’s one of the easiest ways to stay on top of market news out there. All you need to do is enter your email address in the box below to get started.
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Mark Mahaney reveals his top picks ahead of earnings
The U.S. stock market is likely to be eventful in the upcoming weeks as companies continue to report their quarterly results. Ahead of earnings, Mark Mahaney said Netflix Inc (NASDAQ: NFLX) and Uber Technologies Inc (NYSE: UBER) are set to “outperform”…
The U.S. stock market is likely to be eventful in the upcoming weeks as companies continue to report their quarterly results. Ahead of earnings, Mark Mahaney said Netflix Inc (NASDAQ: NFLX) and Uber Technologies Inc (NYSE: UBER) are set to “outperform” in the fourth quarter.
Mahaney confirms his outperform rating on NFLX
On Friday, Mahaney rated Netflix at “outperform” with a price target of $695 that represents a 10% upside from here.
The Evercore ISI analyst expects a strong content slate to drive much of the growth for the media giant in the fourth quarter. He is convinced that content strength will sustain in 2022 as well.
In August, Netflix resorted to another price hike in Europe that Mahaney says would help boost the average revenue per user. The California-based company recently partnered with Walmart Inc to launch Netflix Hub – a new retail destination focused on Netflix merchandise.
Netflix is set to report its quarterly results on October 19th.
Mahaney sees a 45% upside in Uber Technologies
Also on Friday, Mahaney reiterated Uber at “outperform” with a price target of $70 a share that translates to a roughly 45% upside from here.
His bullish call is partially based on Uber Eats – the fastest-growing U.S. food delivery business. Demand for ride-sharing is also likely to gain traction in the upcoming months as COVID-19 restrictions continue to ease.
At current levels, Uber is a “very attractive” buy, Mahaney added in his research note. The California-based company will report its quarterly results on November 4th. Last month, CEO Dara Khosrowshahi said Uber will hit its profitability milestone ahead of schedule.
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Best Entertainment Stocks To Invest In Today? 3 Making Headlines
Could entertainment stocks be a good play amidst rising retail sales figures now?
The post Best Entertainment Stocks To Invest In Today? 3 Making Headlines appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.co…
3 Top Entertainment Stocks To Consider Buying [Or Selling] Right Now
The broader stock market today continues to gain as consumer spending power holds strong. Given September’s latest retail sales figures, investors may want to consider looking at the top entertainment stocks now. In brief, retail sales for September surged by 0.7%, according to the Census Bureau earlier today. For reference, Dow Jones economists were expecting a decline of 0.2%. Now, entertainment stocks cater to consumers in good times and bad. Given the current strength in consumer markets and the fast-approaching year-end holidays, we could be looking at exciting times for the industry.
All in all, some would argue that the current momentum in retail spending is rather surprising. This would be the case given fears of the reopening trade losing steam amidst rising consumer prices and the government pulling back its pandemic-era benefits. Moreover, investment banking giant Goldman Sachs (NYSE: GS) crushed analysts’ estimates in its third-quarter earnings call earlier today. The bank posted an earnings per share of $14.93 on revenue of $13.61 billion. Evidently, this is well above projections of $10.18 and $11.68 billion respectively.
Not to mention, notable names in the current entertainment trade continue to break new ground. For example, we could look at the likes of Fubo (NYSE: FUBO) and Roku (NASDAQ: ROKU) this week. Firstly, Fubo is now an authorized gaming operator for NASCAR. Thanks to this partnership, Fubo can now provide racing fans with premium wagering experiences on all their favorite NASCAR races. At the same time, Needham analyst Laura Martin recently hit ROKU stock with a Buy rating. Safe to say, there is no shortage of excitement amongst entertainment stocks in the stock market now. Could one of these names be worth watching now?
Top Entertainment Stocks To Watch This Month
- Canopy Growth Corporation (NASDAQ: CGC)
- Walt Disney Company (NYSE: DIS)
- Roblox Corporation (NYSE: RBLX)
Canopy Growth Corporation
To begin, we have Canopy Growth Corporation, a world-leading diversified cannabis, and cannabinoid-based consumer company. With its ground-breaking innovation and strategic investments, the company offers a wide product variety in high-quality dried flowers, oil, infused beverages, and edibles. The company also has a global medical brand called Spectrum Therapeutics which is a leader in both Canadian and German markets.
On Thursday, the company announced that it will be acquiring Wana Brands, the No. 1 edible cannabis brand in North America. Wana manufactures and sells gummies in the U.S. state of Colorado and licenses its intellectual property to its partners, who manufacture and distribute Wana-branded gummies across the U.S. and Canada. Canopy cited that the strategic benefits of this acquisition would be to strengthen its U.S. ecosystem and also give it market leadership in the edibles product category throughout North America.
Furthermore, Wana also has a profitable and highly scalable business model, with a good track record of generating strong revenue growth and category-leading gross and EBITDA margins. Wana’s proven licensing model also provides the opportunity to scale the brand ahead of U.S. permissibility. Given this strategic play by the company, should you be paying close attention to CGC stock right now?
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Walt Disney Company
Disney is a multinational entertainment company with headquarters in Burbank, California. The company is a leader in the animation industry before diversifying into live-action film production, television, and theme parks. DIS stock currently has enjoyed gains of over 35% in the past year alone. Recently, the company unveiled a new plethora of content for its Disney+ streaming service.
This would include 20 new APAC content titles including 18 originals in collaboration with award-winning and aspiring content creators from the region. Furthermore, this would include star-studded scripted live-action tent-pole series in drama, comedy, fantasy to variety shows, documentaries, and anime. Ultimately, this would be part of the company’s aspirations to greenlight over 50 APAC originals by 2023.
The company says that it is making another commitment by combining its global resources with the best content creators from the Asia Pacific to develop and produce original stories for Disney+. With over-the-top services going mainstream, the emergence of world-class content from the Asia Pacific, and rising consumer sophistication, Disney believes that this is the right time for it to deepen its collaboration with the region’s content creators to deliver unparalleled storytelling to global audiences. With this being said, will you consider adding DIS stock to your portfolio?
Another top name to know among entertainment stocks now would be the Roblox Corporation. In essence, the California-based company is a video game developer. Through its proprietary sandbox open-world game of the same name, it continues to make waves across the globe. Through its “human co-experience platform”, millions of players worldwide interact with each other in a vast variety of ways. This ranges from user-built interactive games to pop culture-related content and even live streamable music events in-game.
To date, the company currently boasts an average daily active user count of over 43 million. In its latest fiscal quarter report back in August, the company saw its total revenue skyrocket by 127% year-over-year. Additionally, Roblox also ended the quarter with $1.78 billion in cash on hand, a 186% year-over-year surge. As such, I could see investors eyeing RBLX stock ahead of the company’s upcoming quarterly earnings call on November 8.
Furthermore, Roblox does not seem to be slowing down anytime soon. Just yesterday, the company announced plans to further refine the player experience while monetizing its content. Namely, this will come in the form of more realistic player avatars and new in-game monetization streams. Among the notable additions would be the introduction of limited edition items. The likes of which players can exchange for Robux, a premium in-game currency, which can then be exchanged for actual cash, suggesting an NFT-like system. All things considered, would RBLX stock be a buy for you now?reopening pandemic dow jones nasdaq stocks consumer spending oil canada
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