Redwire (NYSE:RDW) Stock Price Down 4.6% - Should You Sell?

Key Points

• Redwire shares fell 4.6% to approximately $10.72, with trading volume well below the average. The stock has a market capitalization of about $2.68 billion and high volatility, reflected by its 3.08 beta.
• Analysts remain mixed, resulting in a consensus “Hold” rating and an average price target of $14.69. Recent targets range from $8.00 with an underperform rating to $15.00 with buy ratings.
• Redwire exceeded quarterly expectations, reporting a loss of $0.09 per share versus the projected $0.16 loss and revenue of $117.07 million against estimates of $107.10 million. However, the company continues to post negative profitability metrics, including a 57.26% net margin.

Redwire Corporation (NYSE:RDW - Get Free Report)'s share price traded down 4.6% on Wednesday . The stock traded as low as $10.69 and last traded at $10.7150. Approximately 12,344,945 shares changed hands during trading, a decline of 55% from the average session volume of 27,469,695 shares. The stock had previously closed at $11.23.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on RDW. Canaccord Genuity Group lifted their target price on Redwire from $14.00 to $15.00 and gave the stock a "buy" rating in a report on Monday, August 10th. Weiss Ratings reissued a "sell (d-)" rating on shares of Redwire in a report on Friday, July 17th. Jefferies Financial Group set a $15.00 price target on shares of Redwire in a report on Sunday, August 9th. Bank of America raised 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, Cantor Fitzgerald raised their price target on shares of Redwire from $9.00 to $13.50 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Redwire currently has a consensus rating of "Hold" and an average price target of $14.69.

Redwire Stock 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 firm's 50 day moving average is $10.73 and its 200-day moving average is $11.55. The company has a market cap of $2.68 billion, a PE ratio of -7.34 and a beta of 3.08.

Redwire (NYSE:RDW - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.09) EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $107.10 million. On average, research analysts anticipate that Redwire Corporation will post -0.7 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $21.48, for a total value of $22,995,736.20. Following the completion of the sale, the director owned 1,077,419 shares of the company's stock, valued at $23,142,960.12. This represents a 49.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.79% of the stock is owned by company insiders.

Institutional Investors Weigh In On Redwire

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Parvin Asset Management LLC lifted its stake in shares of Redwire by 6.9% in the 1st quarter. Parvin Asset Management LLC now owns 17,825 shares of the company's stock valued at $152,000 after purchasing an additional 1,150 shares during the last quarter. Tower Research Capital LLC TRC increased its position in shares of Redwire by 32.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,279 shares of the company's stock worth $102,000 after purchasing an additional 1,533 shares during the last quarter. BNP Paribas Financial Markets increased its position in shares of Redwire by 12.0% during the 2nd quarter. BNP Paribas Financial Markets now owns 30,396 shares of the company's stock worth $495,000 after purchasing an additional 3,248 shares during the last quarter. Parallel Advisors LLC purchased a new stake in Redwire in the 1st quarter valued at about $28,000. Finally, KBC Group NV acquired a new position in Redwire in the first quarter valued at about $29,000. Institutional investors and hedge funds own 8.10% of the company's stock.

Redwire Company Profile

Redwire Corporation is a space infrastructure company specializing in the design, engineering and manufacturing of mission-critical hardware and software for the spaceflight industry. The company's offerings include deployable structures, solar power systems, radio frequency antennas, advanced composites and transparent optics. Redwire serves a broad customer base that spans civil space agencies, national defense organizations and commercial satellite operators, helping enable missions ranging from communications and Earth observation to deep-space exploration.

Formed through the strategic combination of several specialized space technology firms, Redwire's portfolio encompasses both flight-proven hardware and cutting-edge in-space manufacturing capabilities.

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