Redwire (NYSE:RDW) Shares Down 7.2% - What's Next?

Key Points

• Shares fell 7.2% intraday to $8.665 (low $8.62) on Monday, with roughly 13.6M shares trading—about 43% below the average daily volume and down from a prior close of $9.34.
• Redwire missed EPS expectations, reporting ($0.35) vs. an expected ($0.16) while beating revenue at $108.8M, and the company shows weak profitability with a -67.55% net margin and negative return on equity.
• Heavy insider selling: a director sold 977,887 shares at about $10.57 and insiders have offloaded 28.13M shares (~$281M) in the past 90 days, while insiders own just 0.79% and institutions own 8.1%.

Redwire Corporation (NYSE:RDW - Get Free Report) dropped 7.2% during mid-day trading on Monday . The company traded as low as $8.62 and last traded at $8.6650. Approximately 13,585,434 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 23,896,506 shares. The stock had previously closed at $9.34.

Analyst Ratings Changes

RDW has been the subject of several recent analyst reports. Zacks Research raised Redwire from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 11th. Truist Financial raised Redwire to a "strong-buy" rating in a research report on Friday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Redwire in a research report on Tuesday, April 21st. Canaccord Genuity Group raised their target price on Redwire from $11.00 to $12.00 and gave the stock a "buy" rating in a research report on Friday, February 27th. Finally, Jefferies Financial Group decreased their target price on Redwire from $13.00 to $12.00 and set a "buy" rating for the company in a research report on Friday, March 6th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $13.89.

Redwire Trading Down 7.8%

The firm has a market cap of $1.65 billion, a price-to-earnings ratio of -3.63 and a beta of 2.41. The company has a 50-day moving average price of $9.38 and a 200 day moving average price of $8.62. The company has a quick ratio of 1.27, a current ratio of 1.62 and a debt-to-equity ratio of 0.08.

Redwire (NYSE:RDW - Get Free Report) last released its quarterly earnings data on Wednesday, February 25th. The company reported ($0.35) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.19). The firm had revenue of $108.79 million for the quarter, compared to analyst estimates of $98.78 million. Redwire had a negative net margin of 67.55% and a negative return on equity of 13.04%. As a group, research analysts anticipate that Redwire Corporation will post -0.49 earnings per share for the current fiscal year.

Insider Transactions at Redwire

In related news, Director Ae Red Holdings, Llc sold 977,887 shares of Redwire stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $10.57, for a total transaction of $10,336,265.59. Following the completion of the sale, the director owned 21,494,349 shares of the company's stock, valued at approximately $227,195,268.93. This trade represents a 4.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders sold a total of 28,132,190 shares of company stock worth $280,964,494 over the last ninety days. 0.79% of the stock is currently owned by company insiders.

Institutional Trading of Redwire

Institutional investors have recently bought and sold shares of the company. Hsbc Holdings PLC bought a new position in Redwire during the first quarter worth $188,000. Griffin Asset Management Inc. bought a new position in Redwire during the first quarter worth $183,000. Capelight Capital Asset Management LP increased its position in Redwire by 14.3% during the first quarter. Capelight Capital Asset Management LP now owns 200,000 shares of the company's stock worth $1,700,000 after acquiring an additional 25,000 shares during the period. Pictet Asset Management Holding SA bought a new position in Redwire during the first quarter worth $114,000. Finally, Total Clarity Wealth Management Inc. bought a new position in Redwire during the first quarter worth $473,000. Institutional investors and hedge funds 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.

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