Redwire (NYSE:RDW) Shares Up 3.3% - Still a Buy?

Key Points

• Redwire shares rose 3.3% to about $8.91, though trading volume was 38% below the average session volume.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $14.28, with targets ranging from $11 to $15.
• Redwire beat quarterly revenue and EPS expectations, reporting $117.1 million in revenue and a $0.09 adjusted loss per share, but it remains unprofitable; an insider also sold 929,435 shares worth about $10.5 million.

Shares of Redwire Corporation (NYSE:RDW - Get Free Report) traded up 3.3% during trading on Thursday. The company traded as high as $8.97 and last traded at $8.9050. 15,944,860 shares traded hands during mid-day trading, a decline of 38% from the average session volume of 25,635,414 shares. The stock had previously closed at $8.62.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on RDW shares. Wall Street Zen upgraded shares of Redwire from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Piper Sandler began coverage on shares of Redwire in a research report on Thursday. They issued a "neutral" rating and a $11.00 target price for the company. Alliance Global Partners reaffirmed a "buy" rating on shares of Redwire in a report on Thursday, August 6th. Jefferies Financial Group set a $15.00 price target on shares of Redwire in a research report on Sunday, August 9th. Finally, Canaccord Genuity Group increased their price target 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. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $14.28.

Redwire Stock Performance

The company has a current ratio of 3.92, a quick ratio of 3.48 and a debt-to-equity ratio of 0.03. The company's 50-day simple moving average is $11.22 and its 200-day simple moving average is $11.82. The stock has a market capitalization of $2.23 billion, a price-to-earnings ratio of -6.10 and a beta of 3.12.

Redwire (NYSE:RDW - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.09) EPS for the quarter, beating 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 firm had revenue of $117.07 million for the quarter, compared to analyst estimates of $107.10 million. On average, analysts expect that Redwire Corporation will post -0.70 EPS for the current year.

Insider Activity at Redwire

In related news, Director Ae Red Holdings, Llc sold 929,435 shares of the company's stock in a transaction that occurred on Wednesday, September 23rd. The stock was sold at an average price of $11.34, for a total transaction of $10,539,792.90. Following the transaction, the director directly 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 Securities & Exchange Commission, 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

Institutional investors have recently modified their holdings of the company. GAMMA Investing LLC boosted its stake in Redwire by 70.4% during the 3rd quarter. GAMMA Investing LLC now owns 3,213 shares of the company's stock valued at $34,000 after purchasing an additional 1,327 shares during the last quarter. Parallel Advisors LLC purchased a new stake in shares of Redwire in the first quarter worth approximately $28,000. KBC Group NV bought a new position in shares of Redwire in the first quarter valued at approximately $29,000. IFP Advisors Inc lifted its holdings in shares of Redwire by 3,662.5% in the second quarter. IFP Advisors Inc now owns 3,612 shares of the company's stock valued at $44,000 after purchasing an additional 3,516 shares in the last quarter. Finally, Rockefeller Capital Management L.P. boosted its position in shares of Redwire by 1,054.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 4,016 shares of the company's stock valued at $31,000 after buying an additional 3,668 shares during the last quarter. 8.10% of the stock is owned by institutional investors and hedge funds.

Redwire Company Profile

Redwire Corporation is a space infrastructure and defense technology company that develops products and services for government and commercial customers. Its work supports space exploration, national security, civil space programs and the growing commercial space economy.

The company's offerings include spacecraft platforms, avionics, sensors, deployable structures, solar arrays, in-space manufacturing systems, robotic technologies and components designed for satellite and space station applications.

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