Piper Sandler Upgrades Redwire (NYSE:RDW) to Hold

Key Points

• Piper Sandler upgraded Redwire to “Hold”, while analysts maintain a consensus “Hold” rating and an average price target of $14.28. Ratings remain mixed, ranging from Strong Buy to Sell.
• Redwire shares opened at $8.90 and rose 3.3%, but remain below their 50-day and 200-day moving averages of $11.16 and $11.82, respectively. The stock has traded between $4.87 and $26.64 over the past year.
• The company beat quarterly expectations, reporting a loss of $0.09 per share versus the estimated $0.16 loss and revenue of $117.07 million versus the $107.10 million forecast. However, Redwire continues to report negative profitability metrics, including a 57.26% net margin.

Redwire (NYSE:RDW - Get Free Report) was upgraded by investment analysts at Piper Sandler to a "hold" rating in a research note issued to investors on Thursday, Zacks reports.

A number of other research firms have also weighed in on RDW. Bank of America upped their price objective on Redwire from $7.00 to $8.00 and gave the stock an "underperform" rating in a research note on Monday, August 31st. Jefferies Financial Group set a $15.00 target price on Redwire in a research note on Sunday, August 9th. Guggenheim began coverage on Redwire in a report on Monday, September 14th. They issued a "neutral" rating on the stock. Wall Street Zen raised Redwire from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Redwire in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Redwire currently has an average rating of "Hold" and a consensus target price of $14.28.

Redwire Trading Up 3.3%

RDW opened at $8.90 on Thursday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 3.48 and a current ratio of 3.92. The firm's fifty day moving average is $11.16 and its 200 day moving average is $11.82. Redwire has a fifty-two week low of $4.87 and a fifty-two week high of $26.64.

Redwire (NYSE:RDW - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.07. The business had revenue of $117.07 million during the quarter, compared to analyst estimates of $107.10 million. Redwire had a negative return on equity of 11.02% and a negative net margin of 57.26%. Research analysts forecast that Redwire will post -0.70 EPS for the current fiscal year.

Insider Buying and Selling

In other Redwire news, Director Ae Red Holdings, Llc sold 929,435 shares of the stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $11.34, for a total transaction of $10,539,792.90. Following the completion of the transaction, the director owned 147,984 shares of the company's stock, valued at $1,678,138.56. This represents a 86.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.79% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Redwire

Large investors have recently made changes to their positions in the company. BlackRock Inc. bought a new position in Redwire during the second quarter valued at approximately $196,514,000. Van ECK Associates Corp grew its holdings in Redwire by 173.0% during the 2nd quarter. Van ECK Associates Corp now owns 6,851,228 shares of the company's stock valued at $83,791,000 after buying an additional 4,341,424 shares in the last quarter. Bank of America Corp DE grew its holdings in Redwire by 7,512.5% during the 1st quarter. Bank of America Corp DE now owns 6,820,003 shares of the company's stock valued at $57,970,000 after buying an additional 6,730,414 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Redwire in the 2nd quarter worth approximately $16,583,000. Finally, Alyeska Investment Group L.P. bought a new stake in Redwire in the 2nd quarter worth approximately $11,186,000. 8.10% of the stock is owned by institutional investors.

About Redwire

Redwire Corporation is a space infrastructure and defense technology company that develops products and services for government and commercial customers. Its work supports space exploration, national security, civil space programs and the growing commercial space economy.

The company's offerings include spacecraft platforms, avionics, sensors, deployable structures, solar arrays, in-space manufacturing systems, robotic technologies and components designed for satellite and space station applications.

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