Redwire (NYSE:RDW) Stock Jumps 2.9% - Here's What Happened

Key Points

• Redwire shares rose 2.9% to about $10.88 in midday trading, with roughly 15.3 million shares changing hands—42% below average volume.
• Analyst sentiment remains mixed: the consensus rating is “Hold”, with an average price target of $14.69; several firms recently raised targets to between $13.50 and $15.00.
• Redwire exceeded 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, though it remains unprofitable with a negative net margin of 57.26%.

Shares of Redwire Corporation (NYSE:RDW - Get Free Report) traded up 2.9% during mid-day trading on Friday. The stock traded as high as $11.36 and last traded at $10.8760. Approximately 15,257,334 shares traded hands during mid-day trading, a decline of 42% from the average daily volume of 26,229,771 shares. The stock had previously closed at $10.57.

Wall Street Analyst Weigh In

A number of brokerages recently commented on RDW. Cantor Fitzgerald increased their price target on Redwire from $9.00 to $13.50 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. Jefferies Financial Group set a $15.00 price objective on Redwire in a research report on Sunday, August 9th. Guggenheim started coverage on shares of Redwire in a research note on Monday, September 14th. They set a "neutral" rating for the company. Alliance Global Partners restated a "buy" rating on shares of Redwire in a report on Thursday, August 6th. Finally, Canaccord Genuity Group boosted their target price on Redwire from $14.00 to $15.00 and gave the company a "buy" rating in a research report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $14.69.

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 has a market capitalization of $2.72 billion, a PE ratio of -7.45 and a beta of 3.12. The firm's 50-day simple moving average is $11.09 and its 200-day simple moving average is $11.79.

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

Insider Buying and Selling

In other Redwire news, Director Ae Red Holdings, Llc sold 929,435 shares of Redwire stock in a transaction 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 completion of the sale, the director directly owned 147,984 shares of the company's stock, valued at $1,678,138.56. The trade was a 86.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.79% of the stock is owned by insiders.

Institutional Trading of Redwire

Institutional investors and hedge funds have recently made changes to their positions in the company. Deutsche Bank AG bought a new stake in Redwire during the 2nd quarter valued at $2,529,000. Tidal Investments LLC bought a new stake in Redwire during the second quarter valued at about $7,717,000. Van ECK Associates Corp boosted its position 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 worth $83,791,000 after purchasing an additional 4,341,424 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Redwire in the 2nd quarter worth $6,770,000. Finally, Bank of America Corp DE purchased a new position in Redwire during the 2nd quarter worth $13,124,000. 8.10% of the stock is currently owned by institutional investors.

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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