Redwire (NYSE:RDW) Shares Down 5.4% - Time to Sell?

Key Points

• Redwire Corporation shares fell by 5.4% to $8.44, with trading volume decreasing significantly to 1,891,534 shares, down 34% from the average.
• Analysts have set varying price targets for Redwire, with expectations ranging from a high of $22.00 to a low of $10.00, giving the stock a consensus target price of $18.07.
• The company's recent earnings report indicated a missed expectation with a loss of ($0.39) per share against a consensus estimate of ($0.11), alongside a negative net margin of 71.95%.

Redwire Corporation (NYSE:RDW - Get Free Report) dropped 5.4% during trading on Wednesday . The stock traded as low as $8.45 and last traded at $8.44. Approximately 1,891,534 shares were traded during mid-day trading, a decline of 34% from the average daily volume of 2,868,824 shares. The stock had previously closed at $8.92.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. B. Riley dropped their price objective on shares of Redwire from $25.00 to $20.00 and set a "buy" rating for the company in a research report on Friday, August 8th. Truist Financial set a $16.00 price target on Redwire and gave the stock a "hold" rating in a research report on Thursday, June 26th. Canaccord Genuity Group lowered their price objective on shares of Redwire from $21.00 to $17.50 and set a "buy" rating for the company in a research report on Monday, August 11th. HC Wainwright reiterated a "buy" rating and set a $22.00 price objective (down previously from $26.00) on shares of Redwire in a research note on Friday, August 8th. Finally, Bank of America started coverage on shares of Redwire in a research note on Monday, August 18th. They issued an "underperform" rating and a $10.00 target price for the company. Seven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Redwire has an average rating of "Moderate Buy" and a consensus target price of $18.07.

Redwire Stock Down 6.8%

The company has a quick ratio of 1.11, a current ratio of 1.46 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $1.20 billion, a price-to-earnings ratio of -2.56 and a beta of 2.49. The stock has a 50 day moving average of $13.36 and a 200 day moving average of $13.06.

Redwire (NYSE:RDW - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported ($0.39) earnings per share for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.28). Redwire had a negative net margin of 71.95% and a negative return on equity of 32.67%. The firm had revenue of $61.76 million during the quarter, compared to the consensus estimate of $80.48 million. As a group, analysts expect that Redwire Corporation will post -0.85 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Redwire

A number of large investors have recently bought and sold shares of the business. KLP Kapitalforvaltning AS bought a new position in Redwire during the 1st quarter worth $42,000. FNY Investment Advisers LLC acquired a new position in shares of Redwire during the first quarter valued at $47,000. GAMMA Investing LLC grew its position in shares of Redwire by 69,077.8% during the first quarter. GAMMA Investing LLC now owns 6,226 shares of the company's stock worth $52,000 after acquiring an additional 6,217 shares during the last quarter. Ameritas Advisory Services LLC acquired a new stake in shares of Redwire in the 2nd quarter worth about $54,000. Finally, SBI Securities Co. Ltd. lifted its position in Redwire by 1,172.5% in the 1st quarter. SBI Securities Co. Ltd. now owns 8,106 shares of the company's stock valued at $67,000 after purchasing an additional 7,469 shares during the last quarter. Institutional investors own 8.10% of the company's stock.

Redwire Company Profile

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft.

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