Redwire (NYSE:RDW) Shares Up 7.6% - Here's What Happened

Key Points

• Redwire Corporation's shares increased by 7.6% during mid-day trading, reaching a price of $8.73, although trading volume was down 48% from average levels.
• Analysts have mixed ratings on Redwire, with seven giving it a "Buy," one a "Hold," and one a "Sell," while the average price target is $18.07.
• Redwire reported a quarterly loss of ($0.39) earnings per share, significantly missing analyst expectations, alongside a decline in revenue to $61.76 million.

Shares of Redwire Corporation (NYSE:RDW - Get Free Report) rose 7.6% during mid-day trading on Tuesday . The company traded as high as $8.70 and last traded at $8.73. Approximately 1,603,818 shares were traded during trading, a decline of 48% from the average daily volume of 3,074,962 shares. The stock had previously closed at $8.11.

Wall Street Analysts Forecast Growth

RDW has been the subject of several analyst reports. Wall Street Zen cut Redwire from a "hold" rating to a "strong sell" rating in a report on Saturday, August 9th. HC Wainwright reiterated a "buy" rating and set a $22.00 price objective (down from $26.00) on shares of Redwire in a research report on Friday, August 8th. Roth Capital reissued a "buy" rating on shares of Redwire in a research note on Tuesday, June 24th. Truist Financial set a $16.00 price target on shares of Redwire and gave the stock a "hold" rating in a report on Thursday, June 26th. Finally, Canaccord Genuity Group lowered their price objective on Redwire from $21.00 to $17.50 and set a "buy" rating for the company in a research note on Monday, August 11th. Seven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $18.07.

Redwire Stock Performance

The company has a market capitalization of $1.32 billion, a PE ratio of -2.83 and a beta of 2.49. The business's 50-day moving average is $11.20 and its 200-day moving average is $12.26. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.11 and a current ratio of 1.46.

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

Insider Activity at Redwire

In other news, major shareholder Bain Capital Credit Member, Ll sold 11,000,000 shares of the business's stock in a transaction dated 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 document filed with the SEC, which is accessible through this hyperlink. Insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On Redwire

A number of large investors have recently modified their holdings of the company. AE Industrial Partners LP raised its stake in shares of Redwire by 139.3% during the second quarter. AE Industrial Partners LP now owns 85,496,745 shares of the company's stock worth $1,394,000 after purchasing an additional 49,765,262 shares during the last quarter. Hood River Capital Management LLC purchased a new position in shares of Redwire in the 2nd quarter worth $36,206,000. Cooper Creek Partners Management LLC purchased a new position in shares of Redwire in the 2nd quarter valued at $32,652,000. Rockefeller Capital Management L.P. acquired a new position in Redwire during the 2nd quarter worth approximately $7,062,000. Finally, Geode Capital Management LLC boosted its holdings in Redwire by 77.1% in the second quarter. Geode Capital Management LLC now owns 935,297 shares of the company's stock valued at $15,248,000 after purchasing an additional 407,131 shares during the last quarter. 8.10% of the stock is owned by hedge funds and other institutional investors.

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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