Redwire (NYSE:RDW) Shares Gap Up - Here's What Happened

Key Points

• Redwire Corporation (NYSE: RDW) shares experienced a significant gap up, opening at $10.82 after closing at $10.36, with a trading volume of 3,714,327 shares.
• Analyst ratings for Redwire have varied, with Canaccord Genuity lowering their price target to $17.50, while Wall Street Zen downgraded their rating to "strong sell"; the consensus rating remains "Moderate Buy" with a target of $18.07.
• Redwire reported a quarterly loss of ($0.39) earnings per share, missing expectations, and has recently seen major insider transactions, including a significant sale of 11 million shares by a key shareholder.

Redwire Corporation (NYSE:RDW - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $10.36, but opened at $10.82. Redwire shares last traded at $10.70, with a volume of 3,714,327 shares traded.

Analyst Ratings Changes

A number of analysts have commented on the company. Canaccord Genuity Group lowered their price target on Redwire from $21.00 to $17.50 and set a "buy" rating for the company in a research report on Monday, August 11th. Wall Street Zen downgraded shares of Redwire from a "hold" rating to a "strong sell" rating in a report on Saturday, August 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a report on Saturday, September 27th. Roth Capital reaffirmed a "buy" rating on shares of Redwire in a report on Tuesday, June 24th. Finally, Bank of America began coverage on shares of Redwire in a report on Monday, August 18th. They issued an "underperform" rating and a $10.00 price objective on the stock. Seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $18.07.

Redwire Stock Performance

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 firm's 50 day moving average is $9.88 and its 200-day moving average is $12.17. The stock has a market capitalization of $1.54 billion, a price-to-earnings ratio of -3.30 and a beta of 2.47.

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

Insider Transactions at Redwire

In other Redwire news, major shareholder Bain Capital Credit Member, Ll sold 11,000,000 shares of the stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $7.83, for a total transaction of $86,130,000.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. KLP Kapitalforvaltning AS purchased a new stake in Redwire in the 1st quarter worth $42,000. FNY Investment Advisers LLC acquired a new stake in shares of Redwire in the first quarter valued at about $47,000. GAMMA Investing LLC grew its position in shares of Redwire by 69,077.8% in the first 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 during the period. Ameritas Advisory Services LLC acquired a new stake in shares of Redwire in the second quarter valued at about $54,000. Finally, SBI Securities Co. Ltd. grew its position in shares of Redwire by 1,172.5% in the first quarter. SBI Securities Co. Ltd. now owns 8,106 shares of the company's stock valued at $67,000 after purchasing an additional 7,469 shares during the period. 8.10% of the stock is owned by institutional investors and hedge funds.

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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