Redwire (NYSE:RDW) Shares Down 7% - Here's What Happened

Key Points

• Redwire shares fell 7% to about $10.75 on Friday, with trading volume 17% above the average session.
• Analyst sentiment is mixed, with a consensus “Hold” rating and average price target of $14.69; targets range from $13.50 to $15.00 among recent analysts.
• Redwire beat quarterly expectations, reporting an adjusted loss of $0.09 per share versus estimates of $0.16 and revenue of $117.07 million versus $107.10 million expected, although it remains unprofitable.

Redwire Corporation (NYSE:RDW - Get Free Report)'s stock price dropped 7% during trading on Friday . The stock traded as low as $10.64 and last traded at $10.7470. 31,571,689 shares traded hands during trading, an increase of 17% from the average session volume of 26,938,428 shares. The stock had previously closed at $11.55.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. Alliance Global Partners reaffirmed a "buy" rating on shares of Redwire in a research note on Thursday, August 6th. Wall Street Zen raised Redwire from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Guggenheim began coverage on Redwire in a research note on Monday. They set a "neutral" rating for the company. Jefferies Financial Group set a $15.00 target price on shares of Redwire in a research report on Sunday, August 9th. Finally, Cantor Fitzgerald raised their price objective on shares of Redwire from $9.00 to $13.50 and gave the stock an "overweight" rating in a research note on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. 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 Performance

The company has a market capitalization of $2.69 billion, a PE ratio of -7.36 and a beta of 3.08. 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's fifty day simple moving average is $10.70 and its 200-day simple moving average is $11.65.

Redwire (NYSE:RDW - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($0.09) earnings per share for the quarter, beating analysts' consensus estimates of ($0.16) by $0.07. Redwire had a negative net margin of 57.26% and a negative return on equity of 11.02%. The business had revenue of $117.07 million during the quarter, compared to analyst estimates of $107.10 million. As a group, equities analysts predict that Redwire Corporation will post -0.7 earnings per share for the current year.

Institutional Investors Weigh In On Redwire

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in shares of Redwire in the 2nd quarter worth $196,514,000. Bank of America Corp DE increased its stake in Redwire by 7,512.5% during the first 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 during the last quarter. Van ECK Associates Corp lifted its stake in shares of Redwire by 173.0% in the 2nd quarter. Van ECK Associates Corp now owns 6,851,228 shares of the company's stock valued at $83,791,000 after purchasing an additional 4,341,424 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Redwire during the 2nd quarter worth about $16,583,000. Finally, Alyeska Investment Group L.P. acquired a new stake in Redwire during the 2nd quarter worth approximately $11,186,000. 8.10% of the stock is owned by institutional investors and hedge funds.

About Redwire

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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