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

Key Points

• Redwire shares gapped lower, opening at $12.57 versus the prior close of $12.94 and last trading near $12.51 on volume of about 4.25 million shares.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and an average price target of $14.44, with targets recently raised by Canaccord Genuity and Cantor Fitzgerald.
• Redwire beat quarterly expectations, reporting an adjusted loss of $0.09 per share versus estimates of $0.16 and revenue of $117.07 million versus the $107.10 million consensus, though profitability remained weak with a negative net margin.

Redwire Corporation (NYSE:RDW - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $12.94, but opened at $12.57. Redwire shares last traded at $12.5140, with a volume of 4,246,758 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on RDW shares. Canaccord Genuity Group boosted their price objective on Redwire from $14.00 to $15.00 and gave the company a "buy" rating in a report on Monday, August 10th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Redwire in a research report on Friday, July 17th. Truist Financial upgraded shares of Redwire to a "strong-buy" rating in a research note on Friday, May 1st. Jefferies Financial Group set a $15.00 price target on shares of Redwire in a research report on Sunday, August 9th. Finally, Cantor Fitzgerald raised their price objective on shares of Redwire from $9.00 to $13.50 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $14.44.

Redwire Price Performance

The stock has a market capitalization of $3.12 billion, a price-to-earnings ratio of -8.53 and a beta of 3.05. The company has a debt-to-equity ratio of 0.03, a quick ratio of 3.48 and a current ratio of 3.92. The company has a 50 day moving average of $11.40 and a 200 day moving average of $11.39.

Redwire (NYSE:RDW - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.07. The company had revenue of $117.07 million for the quarter, compared to analyst estimates of $107.10 million. Redwire had a negative return on equity of 11.02% and a negative net margin of 57.26%. As a group, equities research analysts anticipate that Redwire Corporation will post -0.68 EPS for the current year.

Insider Buying and Selling at Redwire

In related news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $21.48, for a total value of $22,995,736.20. Following the sale, the director owned 1,077,419 shares of the company's stock, valued at $23,142,960.12. This trade represents a 49.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Redwire

A number of large investors have recently modified their holdings of the company. Kingsview Wealth Management LLC acquired a new stake in shares of Redwire in the 2nd quarter valued at $521,000. Empowered Funds LLC acquired a new position in shares of Redwire during the second quarter worth $3,826,000. Coastal Bridge Advisors LLC acquired a new position in shares of Redwire during the second quarter worth $149,000. Parvin Asset Management LLC purchased a new position in Redwire in the second quarter valued at $221,000. Finally, Corient Private Wealth LP purchased a new position in Redwire in the second quarter valued at $304,000. 8.10% of the stock is owned by hedge funds and other institutional investors.

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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