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.

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 for the quarter, missing the consensus estimate of ($0.11) by ($0.28). The company had revenue of $61.76 million during the quarter, compared to the consensus estimate of $80.48 million.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on RDW shares. Truist Financial set a $16.00 target price on Redwire and gave the company a "hold" rating in a research report on Thursday, June 26th. Wall Street Zen downgraded Redwire from a "hold" rating to a "strong sell" rating in a research report on Saturday. Canaccord Genuity Group lifted their target price on Redwire from $20.00 to $21.00 and gave the company a "buy" rating in a research report on Wednesday, July 16th. Roth Capital reissued a "buy" rating on shares of Redwire in a report on Tuesday, June 24th. Finally, HC Wainwright reissued a "buy" rating and set a $22.00 price target (down from $26.00) on shares of Redwire in a report on Friday. One analyst has rated the stock with a sell rating, one has issued a hold rating and seven have given a buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $20.00.

Institutional Trading of Redwire

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quarry LP purchased a new position in Redwire in the 4th quarter worth $33,000. Summit Investment Advisors Inc. grew its position in Redwire by 64.2% during the 4th quarter. Summit Investment Advisors Inc. now owns 2,382 shares of the company's stock worth $39,000 after purchasing an additional 931 shares during the period. KLP Kapitalforvaltning AS acquired a new stake in Redwire during the 1st quarter worth about $42,000. FNY Investment Advisers LLC acquired a new stake in Redwire during the 1st quarter worth about $47,000. Finally, GAMMA Investing LLC grew its position in Redwire by 69,077.8% during the 1st quarter. GAMMA Investing LLC now owns 6,226 shares of the company's stock worth $52,000 after purchasing an additional 6,217 shares during the period. Hedge funds and other institutional investors own 8.10% of the company's stock.

Redwire Trading Down 1.7%

The company has a market capitalization of $1.26 billion, a price-to-earnings ratio of -2.71 and a beta of 2.52. The firm has a 50-day simple moving average of $16.23 and a two-hundred day simple moving average of $14.63.

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.