Redwire (NYSE:RDW) Stock Price Down 6% - Here's Why

Key Points

• Redwire shares fell 6% to about $8.38, with trading volume roughly 54% below the stock’s average daily volume.
• Analyst sentiment remains mixed: Piper Sandler initiated coverage with a “neutral” rating, while other firms issued buy or overweight ratings. MarketBeat’s consensus rating is “Hold”, with an average price target of $14.28.
• Investor concerns include a major insider sale, with Ae Red Holdings selling 929,435 shares and reducing its position by 86.26%. Redwire remains unprofitable, despite beating quarterly earnings and revenue estimates.

Shares of Redwire Corporation (NYSE:RDW - Get Free Report) dropped 6% on Friday. The stock traded as low as $8.30 and last traded at $8.3750. Approximately 11,671,954 shares were traded during trading, a decline of 54% from the average daily volume of 25,565,715 shares. The stock had previously closed at $8.91.

Wall Street Analyst Weigh In

Several brokerages have commented on RDW. Piper Sandler initiated coverage on shares of Redwire in a research report on Thursday. They issued a "neutral" rating and a $11.00 price target on the stock. Cantor Fitzgerald upped their price target on shares of Redwire from $9.00 to $13.50 and gave the company an "overweight" rating in a report on Wednesday, August 5th. Canaccord Genuity Group raised their price objective on shares of Redwire from $14.00 to $15.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Redwire in a research note on Thursday. Finally, Wall Street Zen raised shares of Redwire from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $14.28.

Redwire Trading Down 6.0%

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 has a market capitalization of $2.09 billion, a P/E ratio of -5.74 and a beta of 3.12. The firm has a 50 day moving average price of $11.16 and a two-hundred day moving average price of $11.82.

Redwire (NYSE:RDW - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $117.07 million for the quarter, compared to analysts' expectations of $107.10 million. Redwire had a negative net margin of 57.26% and a negative return on equity of 11.02%. On average, equities research analysts expect that Redwire Corporation will post -0.70 EPS for the current fiscal year.

Insider Activity at Redwire

In other Redwire news, Director Ae Red Holdings, Llc sold 929,435 shares of the stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $11.34, for a total value 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. This represents a 86.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.79% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. GAMMA Investing LLC grew its position in Redwire by 70.4% during the 3rd quarter. GAMMA Investing LLC now owns 3,213 shares of the company's stock worth $34,000 after acquiring an additional 1,327 shares during the last quarter. Bouchey Financial Group Ltd. bought a new position in Redwire in the 2nd quarter valued at $141,000. Tidal Investments LLC bought a new position in Redwire in the 2nd quarter valued at $7,717,000. Integrated Wealth Concepts LLC acquired a new position in Redwire in the second quarter worth $635,000. Finally, IFP Advisors Inc boosted its stake in Redwire by 3,662.5% in the second quarter. IFP Advisors Inc now owns 3,612 shares of the company's stock worth $44,000 after purchasing an additional 3,516 shares in the last quarter. Institutional investors own 8.10% of the company's stock.

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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