Redwire (NYSE:RDW) Stock Falls 3.6% - Here's Why

Key Points

• Redwire shares fell 3.6% to about $9.24, on trading volume that was 67% below the stock’s average daily volume.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $14.69; targets and recommendations range from sell/underperform to a $15 target from Jefferies.
• Redwire exceeded quarterly expectations, reporting a narrower-than-expected loss of $0.09 per share and revenue of $117.07 million, but a director-linked entity recently sold 929,435 shares worth approximately $10.5 million.

Redwire Corporation (NYSE:RDW - Get Free Report) shares fell 3.6% on Monday. The company traded as low as $9.20 and last traded at $9.2360. Approximately 8,591,822 shares changed hands during trading, a decline of 67% from the average daily volume of 25,833,783 shares. The stock had previously closed at $9.58.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on RDW. Wall Street Zen raised shares of Redwire from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Jefferies Financial Group set a $15.00 price target on shares of Redwire in a research report on Sunday, August 9th. Guggenheim began coverage on shares of Redwire in a research note on Monday, September 14th. They issued a "neutral" rating for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a research note on Friday, July 17th. Finally, Bank of America boosted their price objective on shares of Redwire from $7.00 to $8.00 and gave the company an "underperform" rating in a report on Monday, August 31st. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Redwire currently has an average rating of "Hold" and a consensus target price of $14.69.

Redwire Price Performance

The stock has a market capitalization of $2.31 billion, a price-to-earnings ratio of -6.33 and a beta of 3.12. 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 company has a fifty day simple moving average of $11.30 and a two-hundred day simple moving average of $11.82.

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, beating analysts' consensus estimates of ($0.16) by $0.07. The firm had revenue of $117.07 million during the quarter, compared to the consensus estimate of $107.10 million. Redwire had a negative return on equity of 11.02% and a negative net margin of 57.26%. As a group, equities research analysts expect that Redwire Corporation will post -0.70 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Ae Red Holdings, Llc sold 929,435 shares of the company's stock in a transaction dated 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 completion of the sale, the director owned 147,984 shares of the company's stock, valued at $1,678,138.56. This represents a 86.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.79% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Redwire

A number of large investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Redwire during the 2nd quarter worth approximately $196,514,000. 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 last quarter. 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 last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Redwire during the second quarter valued at approximately $16,583,000. Finally, Alyeska Investment Group L.P. acquired a new position in Redwire during the second quarter valued at approximately $11,186,000. 8.10% of the stock is currently owned by institutional investors and hedge funds.

About Redwire

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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