Investors Purchase High Volume of Call Options on Redwire (NYSE:RDW)

Key Points

• Unusually heavy call option activity hit Redwire, with investors buying 46,592 call options on Monday, about 41% above the stock’s average call volume.
• Redwire shares rose to $12.41 on Monday, and the stock has moved sharply higher recently, though it remains volatile with a beta of 2.41 and a wide 52-week range.
• Analysts remain mixed but slightly positive overall: Redwire has a Moderate Buy consensus rating and a $14.22 average price target, even after a recent earnings miss and ongoing insider selling.

Redwire Corporation (NYSE:RDW - Get Free Report) saw unusually large options trading on Monday. Stock investors purchased 46,592 call options on the company. This represents an increase of approximately 41% compared to the average volume of 33,150 call options.

Analysts Set New Price Targets

RDW has been the topic of a number of recent analyst reports. Zacks Research upgraded Redwire from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a research report on Tuesday, April 21st. Alliance Global Partners reissued a "buy" rating on shares of Redwire in a report on Wednesday, April 22nd. Roth Mkm reissued a "buy" rating and set a $20.00 target price on shares of Redwire in a report on Wednesday, January 28th. Finally, Truist Financial raised Redwire to a "strong-buy" rating in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Redwire has an average rating of "Moderate Buy" and a consensus price target of $14.22.

Redwire Price Performance

Shares of Redwire stock traded up $1.34 during mid-day trading on Monday, reaching $12.41. 15,649,672 shares of the stock traded hands, compared to its average volume of 24,382,066. The business has a 50-day moving average of $9.44 and a 200 day moving average of $8.63. Redwire has a fifty-two week low of $4.87 and a fifty-two week high of $22.25. The stock has a market capitalization of $2.38 billion, a PE ratio of -4.61 and a beta of 2.41. The company has a quick ratio of 1.37, a current ratio of 1.75 and a debt-to-equity ratio of 0.08.

Redwire (NYSE:RDW - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported ($0.40) EPS for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.24). Redwire had a negative net margin of 80.90% and a negative return on equity of 11.68%. The firm had revenue of $96.97 million for the quarter, compared to analyst estimates of $105.94 million. During the same period in the previous year, the company earned ($0.09) EPS. Redwire's revenue was up 57.9% compared to the same quarter last year. On average, analysts predict that Redwire will post -0.49 EPS for the current year.

Insider Transactions at Redwire

In other Redwire news, Director Ae Red Holdings, Llc sold 7,500,000 shares of the stock in a transaction that occurred on Tuesday, March 24th. The stock was sold at an average price of $9.15, for a total transaction of $68,625,000.00. Following the transaction, the director owned 36,135,217 shares in the company, valued at approximately $330,637,235.55. This represents a 17.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders sold a total of 23,377,780 shares of company stock worth $229,306,538 in the last quarter. Corporate insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Redwire

Several hedge funds and other institutional investors have recently made changes to their positions in RDW. AE Industrial Partners LP increased its holdings in shares of Redwire by 7.1% in the third quarter. AE Industrial Partners LP now owns 91,598,704 shares of the company's stock valued at $823,472,000 after purchasing an additional 6,101,959 shares during the last quarter. State Street Corp increased its holdings in shares of Redwire by 61.1% in the fourth quarter. State Street Corp now owns 4,708,600 shares of the company's stock valued at $35,785,000 after purchasing an additional 1,786,038 shares during the last quarter. UBS Group AG increased its holdings in shares of Redwire by 140.8% in the fourth quarter. UBS Group AG now owns 2,039,902 shares of the company's stock valued at $15,503,000 after purchasing an additional 1,192,885 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Redwire in the fourth quarter valued at approximately $7,676,000. Finally, Van ECK Associates Corp increased its holdings in shares of Redwire by 231.0% in the fourth quarter. Van ECK Associates Corp now owns 1,436,535 shares of the company's stock valued at $10,918,000 after purchasing an additional 1,002,504 shares during the last quarter. Institutional investors and hedge funds own 8.10% of the company's stock.

Redwire Company Profile

Redwire Corporation is a space infrastructure company specializing in the design, engineering and manufacturing of mission-critical hardware and software for the spaceflight industry. The company's offerings include deployable structures, solar power systems, radio frequency antennas, advanced composites and transparent optics. Redwire serves a broad customer base that spans civil space agencies, national defense organizations and commercial satellite operators, helping enable missions ranging from communications and Earth observation to deep-space exploration.

Formed through the strategic combination of several specialized space technology firms, Redwire's portfolio encompasses both flight-proven hardware and cutting-edge in-space manufacturing capabilities.

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