Redwire (NYSE:RDW) Shares Gap Down After Earnings Miss

Key Points

• Redwire Corporation experienced a significant drop in share price, opening at $10.99 after closing at $13.70, due to a quarterly earnings miss, reporting EPS of ($0.39) against an expected ($0.11).
• The company's revenue fell short of expectations as well, posting $61.76 million compared to the anticipated $80.48 million.
• Despite the earnings miss, analysts have maintained a buy rating for Redwire, with a consensus target price of $21.50, indicating potential for future recovery.

Shares of Redwire Corporation (NYSE:RDW - Get Free Report) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $13.70, but opened at $10.99. Redwire shares last traded at $9.83, with a volume of 5,552,899 shares traded.

The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.28). The business had revenue of $61.76 million during the quarter, compared to analysts' expectations of $80.48 million.

Analyst Upgrades and Downgrades

RDW has been the topic of several research analyst reports. HC Wainwright reaffirmed a "buy" rating and issued a $26.00 price objective on shares of Redwire in a research note on Tuesday, June 24th. Alliance Global Partners restated a "buy" rating on shares of Redwire in a report on Monday, May 12th. Truist Financial set a $16.00 price objective on Redwire and gave the stock a "hold" rating in a report on Thursday, June 26th. Roth Capital restated a "buy" rating on shares of Redwire in a report on Tuesday, June 24th. Finally, Wall Street Zen upgraded Redwire from a "sell" rating to a "hold" rating in a report on Friday, July 18th. Three analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $21.50.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in Redwire by 8.4% during the 4th quarter. Vanguard Group Inc. now owns 1,310,660 shares of the company's stock worth $21,573,000 after acquiring an additional 101,620 shares during the period. Barclays PLC boosted its position in Redwire by 6.5% during the 4th quarter. Barclays PLC now owns 1,258,366 shares of the company's stock worth $20,713,000 after acquiring an additional 77,228 shares during the period. Federated Hermes Inc. lifted its holdings in shares of Redwire by 165.7% in the fourth quarter. Federated Hermes Inc. now owns 498,275 shares of the company's stock valued at $8,202,000 after buying an additional 310,769 shares during the period. LBP AM SA lifted its holdings in shares of Redwire by 24.8% in the first quarter. LBP AM SA now owns 496,230 shares of the company's stock valued at $4,114,000 after buying an additional 98,616 shares during the period. Finally, Goldman Sachs Group Inc. lifted its holdings in shares of Redwire by 352.8% in the first quarter. Goldman Sachs Group Inc. now owns 355,265 shares of the company's stock valued at $2,945,000 after buying an additional 276,814 shares during the period. Institutional investors and hedge funds own 8.10% of the company's stock.

Redwire Price Performance

The firm has a market cap of $1.42 billion, a price-to-earnings ratio of -4.40 and a beta of 2.52. The company has a fifty day moving average price of $16.44 and a two-hundred day moving average price of $14.86.

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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