Redwire (NYSE:RDW) Trading Down 4.1% - Time to Sell?

Key Points

• Redwire shares fell 4.1% to $10.26, with trading volume down 71% from its average; the stock remains below its 50-day and 200-day moving averages.
• Analyst views are mixed, resulting in a consensus “Hold” rating and an average price target of $14.69. Recent targets range from $8.00 at Bank of America to $15.00 at Canaccord Genuity.
• Redwire beat quarterly revenue and EPS expectations, reporting $117.07 million in revenue and a $0.09 per-share loss, but it continues to post substantial losses, including a negative 57.26% net margin.

Redwire Corporation (NYSE:RDW - Get Free Report) shares were down 4.1% on Tuesday . The stock traded as low as $10.19 and last traded at $10.26. 8,083,941 shares traded hands during trading, a decline of 71% from the average daily volume of 27,939,064 shares. The stock had previously closed at $10.70.

Analysts Set New Price Targets

A number of research firms recently weighed in on RDW. Weiss Ratings restated a "sell (d-)" rating on shares of Redwire in a report on Friday, July 17th. Cantor Fitzgerald boosted their price objective on Redwire from $9.00 to $13.50 and gave the stock an "overweight" rating in a report on Wednesday, August 5th. Canaccord Genuity Group increased their price objective on Redwire from $14.00 to $15.00 and gave the stock a "buy" rating in a research note on Monday, August 10th. Alliance Global Partners restated a "buy" rating on shares of Redwire in a report on Thursday, August 6th. Finally, Bank of America upped their price target on Redwire from $7.00 to $8.00 and gave the stock an "underperform" rating in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Redwire currently has a consensus rating of "Hold" and an average target price of $14.69.

Redwire Price Performance

The stock has a market cap of $2.56 billion, a PE ratio of -7.03 and a beta of 3.05. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.92 and a quick ratio of 3.48. The firm's 50 day moving average price is $10.84 and its two-hundred day moving average price is $11.45.

Redwire (NYSE:RDW - Get Free Report) last announced 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 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 the consensus estimate of $107.10 million. On average, research analysts expect that Redwire Corporation will post -0.68 earnings per share for the current year.

Insider Activity

In related news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the business's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $21.48, for a total transaction of $22,995,736.20. Following the transaction, the director owned 1,077,419 shares in the company, valued at $23,142,960.12. The trade was a 49.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 0.79% of the company's stock.

Hedge Funds Weigh In On Redwire

A number of institutional investors have recently bought and sold shares of the stock. Deutsche Bank AG bought a new stake in Redwire during the second quarter worth about $2,529,000. Van ECK Associates Corp lifted its holdings in shares of Redwire by 173.0% during the second quarter. Van ECK Associates Corp now owns 6,851,228 shares of the company's stock valued at $83,791,000 after purchasing an additional 4,341,424 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Redwire during the fourth quarter valued at approximately $7,676,000. Trivest Advisors Ltd bought a new stake in shares of Redwire in the 1st quarter worth approximately $5,398,000. Finally, BlackRock Inc. purchased a new stake in shares of Redwire in the 2nd quarter worth approximately $196,514,000. 8.10% of the stock is owned by institutional investors.

About Redwire

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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