Redwire (NYSE:RDW) Stock Price Down 3.5% - Here's Why

Key Points

• Redwire shares fell 3.5% to about $10.25 in mid-day trading, with roughly 14 million shares changing hands—46% below average volume.
• Analyst sentiment is mixed, resulting in a consensus “Hold” rating and a $14.69 average price target. Recent targets range from $8 at Bank of America to $15 from Jefferies and Canaccord Genuity.
• Redwire exceeded quarterly revenue and EPS expectations, reporting $117.07 million in revenue and a $0.09 per-share loss, but remains unprofitable. A director-related entity also sold 929,435 shares worth about $10.5 million, sharply reducing its ownership.

Redwire Corporation (NYSE:RDW - Get Free Report) shares traded down 3.5% during mid-day trading on Wednesday. The stock traded as low as $9.90 and last traded at $10.2520. Approximately 14,000,448 shares traded hands during mid-day trading, a decline of 46% from the average session volume of 26,077,229 shares. The stock had previously closed at $10.62.

Wall Street Analysts Forecast Growth

RDW has been the subject of several recent analyst reports. Wall Street Zen upgraded shares of Redwire from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Jefferies Financial Group set a $15.00 price target on shares of Redwire in a report on Sunday, August 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Redwire in a research report on Friday, July 17th. Bank of America lifted their price objective on Redwire from $7.00 to $8.00 and gave the company an "underperform" rating in a report on Monday, August 31st. Finally, Canaccord Genuity Group boosted their target price on Redwire from $14.00 to $15.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $14.69.

Redwire Price Performance

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 moving average price is $11.20 and its 200-day moving average price is $11.81. The firm has a market cap of $2.56 billion, a PE ratio of -7.02 and a beta of 3.12.

Redwire (NYSE:RDW - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.09) EPS for the quarter, topping 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 firm had revenue of $117.07 million for the quarter, compared to the consensus estimate of $107.10 million. As a group, equities analysts forecast that Redwire Corporation will post -0.7 EPS for the current fiscal year.

Insider Transactions at Redwire

In other Redwire news, Director Ae Red Holdings, Llc sold 929,435 shares of the company's stock in a transaction 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 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Redwire

Several institutional investors and hedge funds have recently made changes to their positions in the business. Parallel Advisors LLC acquired a new position in Redwire during the first quarter worth about $28,000. KBC Group NV purchased a new stake in shares of Redwire in the first quarter valued at about $29,000. IFP Advisors Inc grew its position 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 during the last quarter. Rockefeller Capital Management L.P. grew its position in shares of Redwire by 1,054.0% in the fourth 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 last quarter. Finally, Ameritas Advisory Services LLC purchased a new position in shares of Redwire during the 2nd quarter worth approximately $57,000. 8.10% of the stock is currently owned by hedge funds and other institutional investors.

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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