Redwire (NYSE:RDW) Shares Down 2.5% - Here's What Happened

Key Points

• Redwire shares fell 2.5% to about $10.46, with trading volume 55% below the average daily level. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $14.69; targets range from $8 to $15.
• Redwire beat quarterly expectations, reporting a loss of $0.09 per share versus the expected $0.16 loss and revenue of $117.07 million versus the $107.10 million estimate. However, an insider sold 929,435 shares worth approximately $10.5 million.

Redwire Corporation (NYSE:RDW - Get Free Report) shares dropped 2.5% on Wednesday. The company traded as low as $10.44 and last traded at $10.4620. 11,820,190 shares were traded during mid-day trading, a decline of 55% from the average daily volume of 26,361,273 shares. The stock had previously closed at $10.73.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on RDW. Canaccord Genuity Group increased their price objective on shares of Redwire from $14.00 to $15.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Bank of America upped their target price on shares of 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 report on Sunday, August 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of Redwire in a research note on Friday, July 17th. Finally, Guggenheim started coverage on Redwire in a report on Monday, September 14th. They issued a "neutral" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $14.69.

Redwire Stock Down 2.5%

The firm's 50-day simple moving average is $11.03 and its 200 day simple moving average is $11.77. 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 market capitalization of $2.62 billion, a P/E ratio of -7.17 and a beta of 3.08.

Redwire (NYSE:RDW - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping the consensus estimate 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 analyst estimates of $107.10 million. As a group, research analysts expect that Redwire Corporation will post -0.7 EPS for the current year.

Insider Activity

In other news, Director Ae Red Holdings, Llc sold 929,435 shares of the stock in a transaction that occurred on Wednesday, September 23rd. The stock was sold at an average price of $11.34, for a total value of $10,539,792.90. Following the completion of the sale, the director owned 147,984 shares of the company's stock, valued at approximately $1,678,138.56. This represents a 86.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.79% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Redwire

A number of institutional investors have recently added to or reduced their stakes in RDW. Parvin Asset Management LLC lifted its stake in Redwire by 6.9% in the first quarter. Parvin Asset Management LLC now owns 17,825 shares of the company's stock valued at $152,000 after acquiring an additional 1,150 shares during the last quarter. Parallel Advisors LLC bought a new position in shares of Redwire in the 1st quarter valued at about $28,000. KBC Group NV acquired a new position in shares of Redwire during the 1st quarter worth about $29,000. IFP Advisors Inc increased its stake in shares of Redwire by 3,662.5% during the 2nd quarter. IFP Advisors Inc now owns 3,612 shares of the company's stock worth $44,000 after purchasing an additional 3,516 shares during the last quarter. Finally, Rockefeller Capital Management L.P. raised its holdings in shares of Redwire by 1,054.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 4,016 shares of the company's stock valued at $31,000 after purchasing an additional 3,668 shares during the period. 8.10% of the stock is currently owned by institutional investors and hedge funds.

Redwire Company Profile

Redwire Corporation is a space infrastructure and technology company that develops products and services for government, commercial and international space customers. Its capabilities support the design, manufacture and operation of spacecraft, space systems and related infrastructure across missions in low Earth orbit and beyond.

The company's offerings include digital engineering and mission-support services, spacecraft platforms, avionics, sensors, power systems, deployable structures and solar arrays.

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