Redwire (NYSE:RDW) Shares Down 10.1% - Here's What Happened

Key Points

• Redwire shares fell 10.1% on Thursday, trading as low as $8.36 and closing well below the prior day’s $9.36 level amid heavy volume of 18.3 million shares.
• Recent analyst opinions remain mixed, but the overall view is still Moderate Buy with an average target price of $15.44. Ratings have ranged from Strong Buy and Buy to Hold and Sell.
• The company’s latest earnings missed expectations, with EPS of -$0.40 versus an expected -$0.16 and revenue of $96.97 million versus $105.94 million estimated. Insider selling has also been notable, including a director sale of more than 1.07 million shares.

Redwire Corporation (NYSE:RDW - Get Free Report)'s share price was down 10.1% on Thursday . The stock traded as low as $8.36 and last traded at $8.4150. 18,300,864 shares were traded during mid-day trading, a decline of 41% from the average session volume of 30,977,008 shares. The stock had previously closed at $9.36.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Alliance Global Partners restated a "buy" rating on shares of Redwire in a research report on Wednesday, April 22nd. Truist Financial upgraded shares of Redwire to a "strong-buy" rating in a research report on Friday, May 1st. Jefferies Financial Group raised shares of Redwire to a "hold" rating in a research note on Wednesday, June 10th. Canaccord Genuity Group increased their target price on Redwire from $12.00 to $14.00 and gave the company a "buy" rating in a report on Monday, May 11th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Redwire in a research report on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Redwire has a consensus rating of "Moderate Buy" and an average target price of $15.44.

Redwire Stock Down 10.1%

The business has a fifty day moving average price of $14.47 and a two-hundred day moving average price of $11.35. The company has a current ratio of 1.75, a quick ratio of 1.37 and a debt-to-equity ratio of 0.08. The company has a market cap of $2.01 billion, a price-to-earnings ratio of -3.14 and a beta of 3.01.

Redwire (NYSE:RDW - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($0.40) EPS for the quarter, missing the consensus estimate of ($0.16) by ($0.24). The company had revenue of $96.97 million for the quarter, compared to analyst estimates of $105.94 million. Redwire had a negative return on equity of 11.68% and a negative net margin of 80.90%.The business's revenue for the quarter was up 57.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.09) earnings per share. On average, equities analysts predict that Redwire Corporation will post -0.81 earnings per share for the current year.

Insider Activity

In other news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $21.48, for a total transaction of $22,995,736.20. Following the transaction, the director directly 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 transaction was disclosed in a legal filing with the SEC, which is available at this link. Over the last three months, insiders have sold 5,849,360 shares of company stock worth $73,313,940. Company insiders own 0.79% of the company's stock.

Institutional Trading of Redwire

A number of institutional investors have recently bought and sold shares of RDW. Parallel Advisors LLC acquired a new position in Redwire in the 1st quarter worth about $28,000. KBC Group NV acquired a new stake in shares of Redwire during the 1st quarter valued at about $29,000. Sunbelt Securities Inc. lifted its holdings in shares of Redwire by 601.1% during the 4th quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company's stock valued at $30,000 after buying an additional 3,396 shares during the last quarter. Rockefeller Capital Management L.P. grew its stake in shares of Redwire by 1,054.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 4,016 shares of the company's stock valued at $31,000 after buying an additional 3,668 shares in the last quarter. Finally, CWM LLC grew its stake in shares of Redwire by 1,725.0% in the 4th quarter. CWM LLC now owns 4,088 shares of the company's stock valued at $31,000 after buying an additional 3,864 shares in the last quarter. Institutional investors and hedge funds own 8.10% of the company's stock.

Redwire Company Profile

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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