Redwire (NYSE:RDW) Shares Up 1.8% - Should You Buy?

Key Points

• Redwire shares rose 1.8% in Tuesday trading, briefly reaching $10.20 before closing at $9.76, with volume well below its average session volume.
• Analyst sentiment is mixed but leans positive overall: Redwire has a Moderate Buy consensus rating and an average price target of $15.44, though some firms recently downgraded or maintained sell ratings.
• The company’s latest earnings were weak, with EPS of -$0.40 and revenue of $96.97 million, missing estimates even though revenue still rose 57.9% year over year.

Redwire Corporation (NYSE:RDW - Get Free Report) shares traded up 1.8% during mid-day trading on Tuesday . The company traded as high as $10.20 and last traded at $9.76. 13,188,754 shares were traded during trading, a decline of 58% from the average session volume of 31,148,963 shares. The stock had previously closed at $9.59.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Alliance Global Partners restated a "buy" rating on shares of Redwire in a research note on Wednesday, April 22nd. Wall Street Zen downgraded shares of Redwire from a "hold" rating to a "sell" rating in a research note on Saturday, July 4th. Weiss Ratings reissued a "sell (d-)" rating on shares of Redwire in a report on Tuesday, April 21st. Truist Financial upgraded shares of Redwire to a "strong-buy" rating in a research note on Friday, May 1st. Finally, Jefferies Financial Group raised shares of Redwire to a "hold" rating in a report on Wednesday, June 10th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $15.44.

Redwire Stock Up 1.8%

The firm has a market cap of $2.33 billion, a price-to-earnings ratio of -3.64 and a beta of 3.01. The business's 50-day moving average is $14.45 and its 200-day moving average is $11.32. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.37 and a current ratio of 1.75.

Redwire (NYSE:RDW - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported ($0.40) EPS for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.24). The firm had revenue of $96.97 million during the quarter, compared to analyst estimates of $105.94 million. Redwire had a negative net margin of 80.90% and a negative return on equity of 11.68%. Redwire's quarterly revenue was up 57.9% on a year-over-year basis. During the same quarter last year, the firm earned ($0.09) earnings per share. On average, equities analysts predict that Redwire Corporation will post -0.81 EPS for the current year.

Insider Buying and Selling

In related news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the firm's stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $21.48, for a total transaction of $22,995,736.20. Following the completion of the sale, the director directly 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 position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In the last 90 days, insiders sold 9,687,503 shares of company stock worth $113,280,257. 0.79% of the stock is owned by corporate insiders.

Institutional Trading of Redwire

A number of hedge funds and other institutional investors have recently made changes to their positions in RDW. Farther Finance Advisors LLC raised its holdings in shares of Redwire by 4.4% in the fourth quarter. Farther Finance Advisors LLC now owns 20,897 shares of the company's stock valued at $159,000 after buying an additional 877 shares during the last quarter. Parvin Asset Management LLC increased its position in Redwire by 6.9% in the 1st quarter. Parvin Asset Management LLC now owns 17,825 shares of the company's stock valued at $152,000 after acquiring an additional 1,150 shares in the last quarter. Tower Research Capital LLC TRC increased its position in Redwire by 32.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,279 shares of the company's stock valued at $102,000 after acquiring an additional 1,533 shares in the last quarter. BNP Paribas Financial Markets raised its stake in shares of Redwire by 12.0% in the second quarter. BNP Paribas Financial Markets now owns 30,396 shares of the company's stock worth $495,000 after acquiring an additional 3,248 shares during the last quarter. Finally, Parallel Advisors LLC acquired a new position in shares of Redwire during the first quarter worth approximately $28,000. 8.10% of the stock is currently owned by institutional investors and hedge funds.

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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