Redwire (NYSE:RDW) Stock Price Up 2.1% - Still a Buy?

Key Points

• Redwire shares rose 2.1% to about $10.65 on Tuesday, while trading volume was 29% below the average session volume.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $14.69; ratings range from “Sell” to “Strong Buy.”
• Redwire exceeded quarterly expectations, reporting a narrower-than-expected loss of $0.09 per share and revenue of $117.07 million, but remains unprofitable with a negative net margin of 57.26%.

Redwire Corporation (NYSE:RDW - Get Free Report) was up 2.1% during trading on Tuesday. The stock traded as high as $11.15 and last traded at $10.6460. 18,673,699 shares were traded during mid-day trading, a decline of 29% from the average session volume of 26,148,205 shares. The stock had previously closed at $10.43.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on RDW. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a research report on Friday, July 17th. Wall Street Zen raised shares of Redwire from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Guggenheim assumed coverage on shares of Redwire in a report on Monday, September 14th. They set a "neutral" rating on the stock. Canaccord Genuity Group increased their target price on shares of Redwire from $14.00 to $15.00 and gave the stock a "buy" rating in a research note on Monday, August 10th. Finally, Alliance Global Partners reissued a "buy" rating on shares of Redwire in a report on Thursday, August 6th. One 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 given a Sell rating to the company. According to MarketBeat, Redwire currently has a consensus rating of "Hold" and an average target price of $14.69.

Redwire Stock Performance

The company's 50-day moving average is $11.16 and its two-hundred day moving average is $11.80. The company has a market capitalization of $2.66 billion, a P/E ratio of -7.29 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.

Redwire (NYSE:RDW - Get Free Report) last issued its quarterly earnings results 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 analyst estimates of $107.10 million. Equities analysts anticipate 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 Redwire 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 transaction, the director owned 147,984 shares in the company, valued at $1,678,138.56. This trade represents a 86.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Deutsche Bank AG bought a new stake in Redwire in the 2nd quarter worth $2,529,000. Tidal Investments LLC purchased a new stake in shares of Redwire during the second quarter worth about $7,717,000. Van ECK Associates Corp grew its stake in shares of Redwire by 173.0% in the second quarter. Van ECK Associates Corp now owns 6,851,228 shares of the company's stock worth $83,791,000 after purchasing an additional 4,341,424 shares during the last quarter. Bank of America Corp DE bought a new stake in shares of Redwire in the second quarter worth about $13,124,000. Finally, Bank of New York Mellon Corp purchased a new position in Redwire during the 2nd quarter valued at about $6,770,000. 8.10% of the stock is owned by institutional investors.

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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