Redwire (NYSE:RDW) Stock Moved Down to Sell by Wall Street Zen

Key Points

• Wall Street Zen downgraded Redwire from Hold to Sell. Despite the downgrade, analysts’ overall consensus remained Hold, with an average price target of $14.28.
• Quarterly revenue missed expectations: Redwire reported $109 million versus analysts’ estimate of about $127 million, though its loss per share was narrower than expected. The company cited shipment delays affecting revenue timing.
• Business indicators were mixed: Redwire reported a record $619.7 million backlog, up nearly 75% year over year, and secured a $20 million contract, while analysts made mixed adjustments to ratings and price targets.

Redwire (NYSE:RDW - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other research analysts have also issued reports on RDW. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a report on Thursday, October 15th. Guggenheim assumed coverage on Redwire in a report on Monday, September 14th. They issued a "neutral" rating on the stock. Jefferies Financial Group set a $15.00 price target on shares of Redwire in a research note on Sunday, August 9th. Bank of America upped their price target on Redwire from $7.00 to $8.00 and gave the stock an "underperform" rating in a research report on Monday, August 31st. Finally, Canaccord Genuity Group lowered their price objective on shares of Redwire from $15.00 to $13.00 and set a "buy" rating for the company in a report on Friday. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Redwire currently has an average rating of "Hold" and a consensus price target of $14.28.

Redwire Trading Up 16.4%

Shares of RDW stock opened at $7.21 on Friday. The business's fifty day moving average price is $9.80 and its 200 day moving average price is $11.01. Redwire has a 1-year low of $4.87 and a 1-year high of $26.64. The company has a quick ratio of 3.48, a current ratio of 3.92 and a debt-to-equity ratio of 0.03.

Redwire (NYSE:RDW - Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.10) by $0.04. The company had revenue of $109.03 million during the quarter, compared to the consensus estimate of $126.75 million. Redwire had a negative return on equity of 11.02% and a negative net margin of 57.26%. On average, sell-side analysts anticipate that Redwire will post -0.73 earnings per share for the current fiscal year.

Insider Buying and Selling at Redwire

In other news, Director Ae Red Holdings, Llc sold 929,435 shares of Redwire stock in a transaction on 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 transaction, the director owned 147,984 shares in the company, valued at $1,678,138.56. This trade represents a 86.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.79% of the stock is owned by corporate insiders.

Institutional Trading of Redwire

A number of hedge funds and other institutional investors have recently made changes to their positions in RDW. Moors & Cabot Inc. boosted its holdings in shares of Redwire by 108.1% during the third quarter. Moors & Cabot Inc. now owns 181,918 shares of the company's stock worth $1,899,000 after purchasing an additional 94,511 shares during the last quarter. Allworth Financial LP increased its stake in Redwire by 136.2% in the 3rd quarter. Allworth Financial LP now owns 17,341 shares of the company's stock valued at $181,000 after buying an additional 10,000 shares during the period. Fulcrum Asset Management LLP acquired a new position in Redwire during the third quarter valued at approximately $151,000. StoneX Group Inc. bought a new position in Redwire during the third quarter worth about $137,000. Finally, Pictet Asset Management Holding SA raised its position in Redwire by 30.4% in the 3rd quarter. Pictet Asset Management Holding SA now owns 32,317 shares of the company's stock worth $337,000 after purchasing an additional 7,543 shares during the last quarter. Institutional investors and hedge funds own 8.10% of the company's stock.

Key Stories Impacting Redwire

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire reported record backlog of $619.7 million, up nearly 75% year over year, and a book-to-bill ratio of 1.73. Gross margins also reached a record, supporting the view that demand remains solid. Redwire Q3 results
• Positive Sentiment: The company won a $20 million contract for additional Otter very-low-Earth-orbit testing and experimentation, adding to its program work. Otter contract announcement
• Neutral Sentiment: Analyst actions were mixed: B. Riley lowered its price target to $14 but kept a Buy rating, while Piper Sandler cut its target to $8 and maintained Neutral. B. Riley rating Piper Sandler rating
• Negative Sentiment: Quarterly revenue of about $109 million fell short of analysts’ roughly $127 million estimate. Although the adjusted loss per share was narrower than expected, management cited shipment delays that are affecting revenue timing and the outlook. Q3 earnings-call highlights

About Redwire

Redwire Corporation NYSE: RDW is a space infrastructure and defense technology company that develops products and services for government and commercial customers. Its capabilities support spacecraft, space stations, national security missions, and other applications across the space economy.

The company's offerings include deployable solar arrays, spacecraft platforms, avionics, sensors, communications systems, digital engineering and mission-support services. Redwire also develops robotic systems, in-space manufacturing technologies, payloads, and other solutions designed to enable spacecraft operations and the production of materials in orbit.

Redwire was formed in 2020 through the combination of several space technology businesses backed by AE Industrial Partners and became a publicly traded company in 2021.

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