Redwire (NYSE:RDW) Shares Gap Down After Insider Selling

Key Points

• Redwire Corporation's shares gapped down significantly, opening at $8.05 after a previous close of $9.00, with the stock currently trading at $7.92.
• Despite the recent drop, several analysts maintain a buy rating, with target prices ranging from $17.50 to $22.00, although Wall Street Zen has issued a "strong sell" rating.
• The company reported a quarterly loss, with earnings per share of ($0.39) falling short of the consensus estimate and revenue of $61.76 million, well below expectations of $80.48 million.

Redwire Corporation (NYSE:RDW - Get Free Report)'s share price gapped down prior to trading on Wednesday after an insider sold shares in the company. The stock had previously closed at $9.00, but opened at $8.05. Redwire shares last traded at $7.92, with a volume of 6,101,147 shares trading hands.

Specifically, major shareholder Bain Capital Credit Member, Ll sold 11,000,000 shares of the stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $7.83, for a total transaction of $86,130,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Bank of America began coverage on shares of Redwire in a research note on Monday, August 18th. They issued an "underperform" rating and a $10.00 price target for the company. B. Riley decreased their target price on shares of Redwire from $25.00 to $20.00 and set a "buy" rating on the stock in a research note on Friday, August 8th. Truist Financial set a $16.00 price objective on shares of Redwire and gave the company a "hold" rating in a research report on Thursday, June 26th. Wall Street Zen cut shares of Redwire from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 9th. Finally, Roth Capital restated a "buy" rating on shares of Redwire in a research report on Tuesday, June 24th. Seven analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Redwire has a consensus rating of "Moderate Buy" and an average target price of $18.07.

Redwire Trading Down 0.9%

The company's fifty day moving average is $11.39 and its two-hundred day moving average is $12.29. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.11 and a current ratio of 1.46. The company has a market cap of $1.14 billion, a price-to-earnings ratio of -2.44 and a beta of 2.49.

Redwire (NYSE:RDW - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.28). Redwire had a negative return on equity of 32.67% and a negative net margin of 71.95%.The company had revenue of $61.76 million during the quarter, compared to analysts' expectations of $80.48 million. On average, research analysts anticipate that Redwire Corporation will post -0.85 EPS for the current year.

Institutional Inflows and Outflows

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

About Redwire

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.