Redwire (NYSE:RDW) Shares Climb 14.6% - Here's What Happened

Key Points

• Redwire shares rose 14.6% Friday to about $7.10, on trading volume well below its average.
• Results were mixed: Redwire reported a record $619.7 million backlog, record gross margins, and a narrower-than-expected quarterly loss, but revenue of $109 million missed forecasts amid shipment delays.
• The company added a $20 million Otter testing contract; meanwhile, several analysts lowered price targets, and the consensus rating remains Hold.

Redwire Corporation (NYSE:RDW - Get Free Report)'s share price was up 14.6% on Friday. The company traded as high as $7.10 and last traded at $7.0950. Approximately 10,110,709 shares were traded during trading, a decline of 59% from the average session volume of 24,641,176 shares. The stock had previously closed at $6.19.

Redwire News Summary

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire reported a record backlog of $619.7 million, up nearly 75% year over year, a book-to-bill ratio of 1.73 and record gross margins. Its quarterly loss per share was narrower than analysts expected. These measures point to strong demand and improving operating performance. Redwire Q3 results
• Positive Sentiment: The company won an additional $20 million contract for Otter very-low-Earth-orbit testing and experimentation, adding to its project pipeline. Otter contract announcement
• Neutral Sentiment: Analysts trimmed price targets: B. Riley lowered its target to $14 but kept a Buy rating, while Piper Sandler cut its target to $8 and maintained Neutral. The target reductions temper the optimistic ratings. B. Riley analyst update Piper Sandler analyst update
• Negative Sentiment: Quarterly revenue of about $109 million fell well short of the roughly $127 million consensus. Management also discussed shipment delays, which could push revenue into later periods and weigh on near-term results despite the strong backlog. Q3 earnings call highlights

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Canaccord Genuity Group decreased their target price on shares of Redwire from $15.00 to $13.00 and set a "buy" rating for the company in a research note on Friday. Guggenheim started coverage on Redwire in a report on Monday, September 14th. They issued a "neutral" rating for the company. Bank of America lifted their price objective on Redwire from $7.00 to $8.00 and gave the stock an "underperform" rating in a report on Monday, August 31st. Alliance Global Partners reiterated a "buy" rating on shares of Redwire in a research report on Thursday, August 6th. Finally, Piper Sandler lowered their target price on Redwire from $11.00 to $8.00 and set a "neutral" rating on the stock in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $14.28.

Redwire Trading Up 15.6%

The company has a market capitalization of $1.79 billion, a P/E ratio of -5.65 and a beta of 3.15. 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 stock has a fifty day moving average of $9.88 and a 200 day moving average of $11.02.

Redwire (NYSE:RDW - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.10) by $0.04. The business had revenue of $109.03 million during the quarter, compared to analyst estimates of $126.75 million. Redwire had a negative return on equity of 9.84% and a negative net margin of 52.36%. As a group, equities research analysts anticipate that Redwire Corporation will post -0.73 EPS for the current fiscal year.

Insider Buying and Selling

In other Redwire news, Director Ae Red Holdings, Llc sold 929,435 shares of Redwire stock in a transaction that occurred 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 of the company's stock, valued at $1,678,138.56. The trade was a 86.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. BlackRock Inc. purchased a new position in Redwire during the 2nd quarter valued at approximately $196,514,000. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Redwire during the 3rd quarter worth approximately $126,591,000. Bank of America Corp DE raised its holdings in shares of 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 worth $57,970,000 after acquiring an additional 6,730,414 shares in the last quarter. Van ECK Associates Corp boosted its position in shares of 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 acquiring an additional 4,341,424 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Redwire during the 2nd quarter valued at approximately $16,583,000. Hedge funds and other institutional investors own 8.10% of the company's stock.

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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