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

Key Points

• Redwire Corporation's stock price increased from an opening of $9.75 after previously closing at $9.22, and currently trades around $9.57 with a trading volume of over 4 million shares.
• Analysts have mixed ratings on Redwire, with seven recommending a Buy, one a Hold, and another a Sell, resulting in an average rating of "Moderate Buy" and a consensus price target of $18.07.
• The company reported a significant earnings miss, with an EPS of ($0.39), falling short of the consensus estimate of ($0.11), and revenue of $61.76 million compared to expectations of $80.48 million.

Redwire Corporation (NYSE:RDW - Get Free Report) shares gapped up before the market opened on Wednesday . The stock had previously closed at $9.22, but opened at $9.75. Redwire shares last traded at $9.57, with a volume of 4,214,738 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on RDW shares. Wall Street Zen cut shares of Redwire from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 9th. Bank of America started coverage on Redwire in a research report on Monday, August 18th. They set an "underperform" rating and a $10.00 price objective on the stock. Roth Capital reissued a "buy" rating on shares of Redwire in a research report on Tuesday, June 24th. Canaccord Genuity Group lowered their target price on Redwire from $21.00 to $17.50 and set a "buy" rating for the company in a research note on Monday, August 11th. Finally, Truist Financial set a $16.00 price target on Redwire and gave the company a "hold" rating in a research report on Thursday, June 26th. Seven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $18.07.

Redwire Stock Up 7.6%

The company has a debt-to-equity ratio of 0.21, a current ratio of 1.46 and a quick ratio of 1.11. The stock has a 50 day simple moving average of $11.04 and a 200-day simple moving average of $12.24. The firm has a market cap of $1.43 billion, a PE ratio of -3.04 and a beta of 2.49.

Redwire (NYSE:RDW - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. 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 for the quarter, compared to the consensus estimate of $80.48 million. Redwire had a negative net margin of 71.95% and a negative return on equity of 32.67%. Sell-side analysts predict that Redwire Corporation will post -0.85 EPS for the current fiscal year.

Insider Transactions at Redwire

In other news, major shareholder Bain Capital Credit Member, Ll sold 11,000,000 shares of the company'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 sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 2.60% of the company's stock.

Hedge Funds Weigh In On Redwire

A number of hedge funds have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Redwire by 4.3% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,876 shares of the company's stock valued at $212,000 after purchasing an additional 532 shares during the last quarter. Gabelli Funds LLC boosted its position in shares of Redwire by 7.4% during the first quarter. Gabelli Funds LLC now owns 18,871 shares of the company's stock valued at $156,000 after buying an additional 1,300 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in Redwire by 32.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,279 shares of the company's stock worth $102,000 after buying an additional 1,533 shares in the last quarter. Vontobel Holding Ltd. raised its position in Redwire by 10.4% in the 2nd quarter. Vontobel Holding Ltd. now owns 18,507 shares of the company's stock worth $302,000 after buying an additional 1,751 shares during the last quarter. Finally, Police & Firemen s Retirement System of New Jersey raised its position in Redwire by 71.2% in the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 7,724 shares of the company's stock worth $126,000 after buying an additional 3,213 shares during the last quarter. 8.10% of the stock is currently owned by hedge funds and other institutional investors.

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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