Redwire (NYSE:RDW) Shares Down 5.3% - Should You Sell?

Key Points

• Redwire shares fell 5.3% to about $11.39 in Monday trading, with volume below the stock’s average. The stock’s market capitalization is approximately $2.85 billion, and its high beta of 3.05 indicates elevated volatility.
• Analyst sentiment is mixed but leans positive: Redwire has an average “Hold” rating and a consensus price target of $14.44, with targets ranging from $13.50 to $15.00.
• Redwire beat quarterly expectations, reporting a loss of $0.09 per share versus the projected $0.16 loss and revenue of $117.07 million versus estimates of $107.10 million. However, the company remains unprofitable, while a director recently sold more than 1 million shares and reduced their ownership by nearly 50%.

Redwire Corporation (NYSE:RDW - Get Free Report) shares traded down 5.3% on Monday . The company traded as low as $11.38 and last traded at $11.3880. 10,885,981 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 28,637,221 shares. The stock had previously closed at $12.02.

Wall Street Analysts Forecast Growth

RDW has been the topic of a number of research analyst reports. Alliance Global Partners reaffirmed a "buy" rating on shares of Redwire in a research report on Thursday, August 6th. Truist Financial upgraded shares of Redwire to a "strong-buy" rating in a research report on Friday, May 1st. Cantor Fitzgerald lifted their target price on shares of Redwire from $9.00 to $13.50 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. Jefferies Financial Group set a $15.00 price target on shares of Redwire in a report on Sunday, August 9th. 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 assigned a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Redwire currently has an average rating of "Hold" and a consensus target price of $14.44.

Redwire Stock Down 5.3%

The firm's 50-day simple moving average is $11.19 and its 200-day simple moving average is $11.40. 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 company has a market capitalization of $2.85 billion, a price-to-earnings ratio of -7.80 and a beta of 3.05.

Redwire (NYSE:RDW - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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%. Sell-side analysts forecast 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 company's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $21.48, for a total value of $22,995,736.20. Following the completion of the sale, the director owned 1,077,419 shares in the company, valued at approximately $23,142,960.12. This represents a 49.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 0.79% of the company's stock.

Institutional Trading of Redwire

Hedge funds have recently bought and sold shares of the stock. BlackRock Inc. bought a new position in shares of Redwire in the 2nd quarter valued at about $196,514,000. Bank of America Corp DE lifted its stake in Redwire by 7,512.5% in the 1st quarter. Bank of America Corp DE now owns 6,820,003 shares of the company's stock valued at $57,970,000 after purchasing an additional 6,730,414 shares during the last quarter. Van ECK Associates Corp lifted its stake in Redwire by 173.0% in the 2nd 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. California State Teachers Retirement System grew its holdings in Redwire by 2,236.7% during the second quarter. California State Teachers Retirement System now owns 2,302,310 shares of the company's stock worth $28,157,000 after purchasing an additional 2,203,783 shares during the period. Finally, State Street Corp grew its holdings in Redwire by 61.1% during the fourth quarter. State Street Corp now owns 4,708,600 shares of the company's stock worth $35,785,000 after purchasing an additional 1,786,038 shares during the period. 8.10% of the stock is currently owned by institutional investors and hedge funds.

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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