Redwire (NYSE:RDW) Stock Price Down 5.9% - Should You Sell?

Key Points

• Redwire shares fell 5.9% to approximately $8.62, with trading volume about 53% below the average daily level. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans cautious: Redwire has an average rating of “Hold” and an average price target of $14.69, ranging from sell/underperform ratings to buy ratings.
• The company beat quarterly expectations, reporting a smaller-than-expected loss of $0.09 per share and revenue of $117.07 million, but it continues to post negative margins and return on equity. An insider also sold 929,435 shares, reducing that holder’s ownership by 86.26%.

Redwire Corporation (NYSE:RDW - Get Free Report)'s stock price fell 5.9% during mid-day trading on Wednesday. The stock traded as low as $8.47 and last traded at $8.6190. Approximately 12,168,088 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 25,683,480 shares. The stock had previously closed at $9.16.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Wall Street Zen upgraded Redwire from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Bank of America boosted their target price on Redwire from $7.00 to $8.00 and gave the stock an "underperform" rating in a report on Monday, August 31st. Guggenheim assumed coverage on Redwire in a research note on Monday, September 14th. They issued a "neutral" rating on the stock. Alliance Global Partners reaffirmed a "buy" rating on shares of Redwire in a report on Thursday, August 6th. Finally, Canaccord Genuity Group raised their price target on Redwire from $14.00 to $15.00 and gave the company a "buy" rating in a report on Monday, August 10th. One investment 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 issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $14.69.

Redwire Stock Performance

The company has a market cap of $2.15 billion, a P/E ratio of -5.90 and a beta of 3.12. The company has a quick ratio of 3.48, a current ratio of 3.92 and a debt-to-equity ratio of 0.03. The stock has a 50 day moving average price of $11.26 and a two-hundred day moving average price of $11.82.

Redwire (NYSE:RDW - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.09) earnings per share for the quarter, topping the consensus estimate of ($0.16) by $0.07. The business had revenue of $117.07 million during the quarter, compared to analysts' expectations of $107.10 million. Redwire had a negative return on equity of 11.02% and a negative net margin of 57.26%. On average, research analysts predict that Redwire Corporation will post -0.70 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other 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 owned 147,984 shares of the company's stock, valued at approximately $1,678,138.56. This trade represents a 86.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.79% of the stock is owned by insiders.

Institutional Investors Weigh In On Redwire

A number of institutional investors have recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of Redwire in the second quarter valued at approximately $196,514,000. Van ECK Associates Corp grew its position in Redwire by 173.0% during the second quarter. Van ECK Associates Corp now owns 6,851,228 shares of the company's stock worth $83,791,000 after buying an additional 4,341,424 shares in the last quarter. Bank of America Corp DE increased its stake in Redwire by 7,512.5% during the 1st quarter. Bank of America Corp DE now owns 6,820,003 shares of the company's stock worth $57,970,000 after acquiring an additional 6,730,414 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Redwire during the 2nd quarter worth $16,583,000. Finally, Alyeska Investment Group L.P. bought a new position in Redwire during the 2nd quarter worth $11,186,000. Institutional investors own 8.10% of the company's stock.

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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