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

Key Points

• Redwire Corporation shares fell sharply, opening down from a previous close of $10.97 to $10.19, with a last trade at $10.08 and a trading volume of over 4 million shares.
• A number of analysts have issued conflicting ratings: Canaccord Genuity lowered their price target to $17.50 while seven analysts maintain a "Buy" rating, resulting in a consensus rating of "Moderate Buy" with an average target price of $18.07.
• Despite a strong showing in institutional investments, Redwire reported disappointing earnings, missing EPS estimates by $0.28 and generating $61.76 million in revenue compared to an expected $80.48 million.

Redwire Corporation (NYSE:RDW - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $10.97, but opened at $10.19. Redwire shares last traded at $10.08, with a volume of 4,019,664 shares traded.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on RDW shares. Canaccord Genuity Group cut their price target on shares of Redwire from $21.00 to $17.50 and set a "buy" rating on the stock in a report on Monday, August 11th. Roth Capital restated a "buy" rating on shares of Redwire in a report on Tuesday, June 24th. HC Wainwright restated a "buy" rating and set a $22.00 price target (down previously from $26.00) on shares of Redwire in a report on Friday, August 8th. B. Riley cut their price target on shares of Redwire from $25.00 to $20.00 and set a "buy" rating on the stock in a report on Friday, August 8th. Finally, Truist Financial set a $16.00 price target on shares of Redwire and gave the company a "hold" rating in a report on Thursday, June 26th. Seven research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $18.07.

Redwire Price Performance

The company has a quick ratio of 1.11, a current ratio of 1.46 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $1.47 billion, a P/E ratio of -3.14 and a beta of 2.47. The company's 50-day simple moving average is $9.62 and its 200 day simple moving average is $12.17.

Redwire (NYSE:RDW - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.28). The business had revenue of $61.76 million during the quarter, compared to the consensus estimate of $80.48 million. Redwire had a negative return on equity of 32.67% and a negative net margin of 71.95%. As a group, sell-side analysts expect that Redwire Corporation will post -0.85 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Redwire news, major shareholder Bain Capital Credit Member, Ll sold 11,000,000 shares of the business's stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $7.83, for a total value of $86,130,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 2.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RDW. AE Industrial Partners LP boosted its holdings in Redwire by 139.3% during the second quarter. AE Industrial Partners LP now owns 85,496,745 shares of the company's stock valued at $1,394,000 after acquiring an additional 49,765,262 shares during the period. Hood River Capital Management LLC acquired a new position in shares of Redwire during the 2nd quarter worth about $36,206,000. Cooper Creek Partners Management LLC acquired a new stake in Redwire in the 2nd quarter valued at approximately $32,652,000. Geode Capital Management LLC increased its position in Redwire by 77.1% in the 2nd quarter. Geode Capital Management LLC now owns 935,297 shares of the company's stock worth $15,248,000 after buying an additional 407,131 shares during the period. Finally, LBP AM SA lifted its holdings in shares of Redwire by 24.8% during the first quarter. LBP AM SA now owns 496,230 shares of the company's stock worth $4,114,000 after buying an additional 98,616 shares during the last quarter. Institutional investors and hedge funds 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.

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