Redwire (NYSE:RDW) Shares Up 9% - Still a Buy?

Key Points

• Shares rose ~9% to $9.27 on Wednesday (volume ~9.9M, below average), and analysts give Redwire a consensus rating of “Moderate Buy” with an average price target of $13.89 after recent upgrades like Truist raising its rating to Buy.
• Redwire reported Q4 EPS of -$0.35 (missing estimates of -$0.16) while beating revenue expectations ($108.8M vs. $98.8M), but the company remains unprofitable with negative margins and a market cap of $1.77B.
• Significant insider selling has occurred recently—Ae Red Holdings sold 12.66M shares (~$133M) and insiders sold ~51.6M shares over the last 90 days, leaving insiders with just 2.6% ownership.

Redwire Corporation (NYSE:RDW - Get Free Report) shares shot up 9% during trading on Wednesday . The stock traded as high as $9.48 and last traded at $9.2690. 9,874,900 shares were traded during trading, a decline of 59% from the average session volume of 24,037,287 shares. The stock had previously closed at $8.50.

Analyst Upgrades and Downgrades

RDW has been the subject of several recent analyst reports. Truist Financial upgraded Redwire from a "hold" rating to a "buy" rating and boosted their price target for the stock from $13.00 to $15.00 in a research note on Monday, March 9th. HC Wainwright reaffirmed a "buy" rating and set a $22.00 price objective on shares of Redwire in a research report on Tuesday, December 23rd. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a report on Thursday, January 22nd. Cantor Fitzgerald decreased their target price on Redwire from $20.00 to $9.00 and set an "overweight" rating for the company in a research report on Wednesday, December 10th. Finally, Roth Mkm restated a "buy" rating and set a $20.00 target price on shares of Redwire in a research note on Wednesday, January 28th. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Redwire presently has a consensus rating of "Moderate Buy" and an average price target of $13.89.

Redwire Stock Performance

The business's 50 day simple moving average is $9.58 and its two-hundred day simple moving average is $8.53. The firm has a market capitalization of $1.77 billion, a PE ratio of -3.88 and a beta of 2.50. The company has a current ratio of 1.62, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08.

Redwire (NYSE:RDW - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The company reported ($0.35) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.19). Redwire had a negative return on equity of 13.04% and a negative net margin of 67.55%.The firm had revenue of $108.79 million during the quarter, compared to analysts' expectations of $98.78 million. Research analysts expect that Redwire Corporation will post -0.85 earnings per share for the current fiscal year.

Insider Transactions at Redwire

In other Redwire news, Director Ae Red Holdings, Llc sold 12,656,683 shares of the business's stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $10.51, for a total transaction of $133,021,738.33. Following the completion of the sale, the director directly owned 61,541,253 shares in the company, valued at $646,798,569.03. The trade was a 17.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders sold 51,587,273 shares of company stock valued at $557,353,017 over the last 90 days. Company insiders own 2.60% of the company's stock.

Hedge Funds Weigh In On Redwire

Several institutional investors have recently made changes to their positions in the business. Rockefeller Capital Management L.P. grew its position in Redwire by 1,054.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 4,016 shares of the company's stock valued at $31,000 after buying an additional 3,668 shares during the period. Caitong International Asset Management Co. Ltd raised its position in Redwire by 3,976.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 269,873 shares of the company's stock worth $2,051,000 after acquiring an additional 263,253 shares during the period. Corecam Pte. Ltd. purchased a new position in shares of Redwire during the 4th quarter worth $288,000. Alpine Global Management LLC purchased a new position in shares of Redwire during the 4th quarter worth $93,000. Finally, Sunbelt Securities Inc. grew its position in shares of Redwire by 601.1% during the 4th quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company's stock valued at $30,000 after acquiring an additional 3,396 shares during the period. Institutional investors own 8.10% of the company's stock.

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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