Redwire (NYSE:RDW) Shares Down 7% - Here's What Happened

Key Points

• Shares fell 7% to about $9.22 (intraday low $9.01) on Tuesday with roughly 4.89M shares traded—about 79% below its average daily volume—leaving a market cap near $1.9B and continued volatility.
• Redwire reported quarterly EPS of ($0.35), missing the ($0.16) estimate while beating revenue at $108.8M; the business shows a negative net margin (~67.6%) and analysts project FY EPS around -0.85.
• A director sold 12.66M shares for about $133M and insiders disposed of ~49.7M shares (~$538M) in the last quarter, yet the stock holds a “Moderate Buy” consensus from analysts with an average target of $13.89 (8 buys, 2 holds, 2 sells).

Redwire Corporation (NYSE:RDW - Get Free Report)'s share price dropped 7% on Tuesday . The company traded as low as $9.01 and last traded at $9.2150. Approximately 4,892,390 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 23,831,469 shares. The stock had previously closed at $9.91.

Wall Street Analysts Forecast Growth

RDW has been the topic of a number of research analyst reports. Zacks Research upgraded shares of Redwire from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 11th. KeyCorp initiated coverage on shares of Redwire in a research report on Thursday, December 18th. They issued a "sector weight" rating on the stock. Jefferies Financial Group cut their target price on shares of Redwire from $13.00 to $12.00 and set a "buy" rating on the stock in a research report on Friday, March 6th. HC Wainwright restated a "buy" rating and issued a $22.00 target price on shares of Redwire in a research report on Tuesday, December 23rd. Finally, Cantor Fitzgerald cut their target price on shares of Redwire from $20.00 to $9.00 and set an "overweight" rating on the stock in a research report on Wednesday, December 10th. Eight investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $13.89.

Redwire Trading Down 0.3%

The company has a market cap of $1.90 billion, a price-to-earnings ratio of -4.17 and a beta of 2.49. The business's fifty day moving average price is $9.44 and its 200 day moving average price is $8.56. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.62 and a quick ratio of 1.27.

Redwire (NYSE:RDW - Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The company reported ($0.35) EPS for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.19). The business had revenue of $108.79 million for the quarter, compared to analyst estimates of $98.78 million. Redwire had a negative return on equity of 13.04% and a negative net margin of 67.55%. Research analysts anticipate that Redwire Corporation will post -0.85 earnings per share for the current fiscal year.

Insider Activity at Redwire

In other news, Director Ae Red Holdings, Llc sold 12,656,683 shares of Redwire stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $10.51, for a total transaction of $133,021,738.33. Following the transaction, the director owned 61,541,253 shares in the company, valued at approximately $646,798,569.03. The trade was a 17.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold a total of 49,725,210 shares of company stock worth $537,913,080 in the last quarter. 2.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Redwire

A number of hedge funds have recently bought and sold shares of the company. Farther Finance Advisors LLC raised its stake in Redwire by 4.4% during the fourth quarter. Farther Finance Advisors LLC now owns 20,897 shares of the company's stock worth $159,000 after buying an additional 877 shares during the last quarter. Tower Research Capital LLC TRC raised its stake in Redwire by 32.3% during the second quarter. Tower Research Capital LLC TRC now owns 6,279 shares of the company's stock worth $102,000 after buying an additional 1,533 shares during the last quarter. Jones Financial Companies Lllp raised its stake in Redwire by 24.0% during the third quarter. Jones Financial Companies Lllp now owns 12,617 shares of the company's stock worth $111,000 after buying an additional 2,442 shares during the last quarter. Huntleigh Advisors Inc. raised its stake in Redwire by 4.2% during the third quarter. Huntleigh Advisors Inc. now owns 61,837 shares of the company's stock worth $556,000 after buying an additional 2,488 shares during the last quarter. Finally, BNP Paribas Financial Markets raised its stake in Redwire by 12.0% during the second quarter. BNP Paribas Financial Markets now owns 30,396 shares of the company's stock worth $495,000 after buying an additional 3,248 shares during the last quarter. Institutional investors own 8.10% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.