Redwire (NYSE:RDW) Shares Down 1.6% - Here's Why

Key Points

• Redwire shares fell 1.6% to $11.30 in mid-day trading, with volume down 73% from the stock’s average daily level.
• Analyst sentiment remains mixed: the stock has a consensus rating of “Hold” and an average price target of $14.44, despite recent upgrades from Truist Financial and Cantor Fitzgerald.
• Redwire exceeded quarterly expectations, reporting revenue of $117.07 million and an adjusted loss of $0.09 per share versus estimates of $107.10 million and a $0.16 loss; however, the company remains unprofitable, with a negative net margin of 57.26%.

Redwire Corporation (NYSE:RDW - Get Free Report)'s share price traded down 1.6% during mid-day trading on Wednesday . The company traded as low as $11.22 and last traded at $11.30. Approximately 7,745,761 shares were traded during trading, a decline of 73% from the average daily volume of 28,400,100 shares. The stock had previously closed at $11.48.

Analyst Ratings Changes

RDW has been the topic of a number of recent analyst reports. Truist Financial raised shares of Redwire to a "strong-buy" rating in a research report on Friday, May 1st. Cantor Fitzgerald lifted their target price on shares of Redwire from $9.00 to $13.50 and gave the stock an "overweight" rating in a report on Wednesday, August 5th. Weiss Ratings restated a "sell (d-)" rating on shares of Redwire in a report on Friday, July 17th. Wall Street Zen raised Redwire from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Jefferies Financial Group set a $15.00 price objective on Redwire in a research note on Sunday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $14.44.

Redwire Price Performance

The company has a quick ratio of 3.48, a current ratio of 3.92 and a debt-to-equity ratio of 0.03. The stock's 50-day moving average price is $11.08 and its 200 day moving average price is $11.41. The firm has a market cap of $2.82 billion, a price-to-earnings ratio of -7.74 and a beta of 3.05.

Redwire (NYSE:RDW - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.09) earnings per share for the quarter, topping analysts' consensus estimates of ($0.16) by $0.07. Redwire had a negative return on equity of 11.02% and a negative net margin of 57.26%.The business had revenue of $117.07 million for the quarter, compared to the consensus estimate of $107.10 million. Equities research analysts predict that Redwire Corporation will post -0.68 earnings per share for the current year.

Insider Buying and Selling at Redwire

In other news, Director Ae Red Holdings, Llc sold 1,070,565 shares of Redwire stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $21.48, for a total transaction of $22,995,736.20. Following the sale, the director owned 1,077,419 shares of the company's stock, valued at approximately $23,142,960.12. This trade represents a 49.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Redwire

A number of institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new position in shares of Redwire during the 2nd quarter worth about $196,514,000. Van ECK Associates Corp increased its stake in Redwire by 173.0% in the second 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 period. Bank of America Corp DE increased its stake in Redwire by 7,512.5% in the first quarter. Bank of America Corp DE now owns 6,820,003 shares of the company's stock valued at $57,970,000 after acquiring an additional 6,730,414 shares during the period. State Street Corp raised its position in Redwire by 61.1% in the fourth quarter. State Street Corp now owns 4,708,600 shares of the company's stock worth $35,785,000 after purchasing an additional 1,786,038 shares in the last quarter. Finally, Vanguard Group Inc. raised its position in Redwire by 2.9% in the third quarter. Vanguard Group Inc. now owns 3,242,848 shares of the company's stock worth $29,153,000 after purchasing an additional 91,045 shares in 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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