Redwire (NYSE:RDW) Stock Price Down 4.6% - Time to Sell?

Key Points

• Redwire shares fell 4.6% to about $9.76 on heavy trading, with volume reaching 11.03 million shares. The stock remains below its 50-day and 200-day moving averages of $11.25 and $11.81.
• Analyst sentiment is mixed but leans positive: the consensus rating is “Hold,” with a price target of $14.69 versus the current price. Ratings include one Strong Buy, five Buys, four Holds and two Sells.
• Redwire exceeded quarterly expectations, reporting a smaller-than-expected loss of $0.09 per share and revenue of $117.07 million, but it remains unprofitable with a negative net margin of 57.26%. A director also sold 929,435 shares, reducing their ownership by 86.26%.

Redwire Corporation (NYSE:RDW - Get Free Report) fell 4.6% on Thursday. The company traded as low as $9.56 and last traded at $9.7640. 11,030,543 shares changed hands during trading, a decline of 58% from the average session volume of 26,007,797 shares. The stock had previously closed at $10.24.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on RDW. Canaccord Genuity Group upped 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. Bank of America upped their price target on shares of Redwire from $7.00 to $8.00 and gave the company an "underperform" rating in a report on Monday, August 31st. Cantor Fitzgerald increased their price objective 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. Guggenheim started coverage on shares of Redwire in a research report on Monday, September 14th. They issued a "neutral" rating for the company. Finally, Jefferies Financial Group set a $15.00 target price on shares of Redwire in a research note on Sunday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $14.69.

Redwire Stock Performance

The firm has a market capitalization of $2.44 billion, a price-to-earnings ratio of -6.69 and a beta of 3.12. The company has a 50-day moving average of $11.25 and a 200-day moving average of $11.81. The company has a current ratio of 3.92, a quick ratio of 3.48 and a debt-to-equity ratio of 0.03.

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 the consensus estimate 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 during the quarter, compared to analyst estimates of $107.10 million. On average, equities research analysts forecast that Redwire Corporation will post -0.7 earnings per share for the current fiscal year.

Insider Buying and Selling at Redwire

In related news, Director Ae Red Holdings, Llc sold 929,435 shares of the 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 sale, the director owned 147,984 shares in the company, valued at $1,678,138.56. This represents a 86.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.79% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Redwire

A number of hedge funds and other institutional investors have recently bought and sold shares of RDW. Bouchey Financial Group Ltd. bought a new position in shares of Redwire during the second quarter valued at approximately $141,000. Tidal Investments LLC bought a new stake in shares of Redwire in the 2nd quarter worth approximately $7,717,000. Integrated Wealth Concepts LLC bought a new stake in shares of Redwire in the 2nd quarter worth approximately $635,000. IFP Advisors Inc boosted its position in Redwire by 3,662.5% during the 2nd 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 period. Finally, Allworth Financial LP boosted its position in Redwire by 160.5% during the 2nd quarter. Allworth Financial LP now owns 7,341 shares of the company's stock valued at $90,000 after purchasing an additional 4,523 shares during the period. 8.10% of the stock is currently 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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