Redwire (NYSE:RDW) Stock Price Down 3.2% - Time to Sell?

Key Points

• Redwire shares fell 3.2% to $13.16 in Monday trading, with volume below its average. Analysts’ consensus rating remains “Hold,” with an average price target of $14.44, despite recent target increases and mixed ratings.
• The company beat quarterly expectations, reporting an adjusted loss of $0.09 per share versus the anticipated $0.16 loss and revenue of $117.07 million versus estimates of $107.10 million. However, Redwire continues to post negative net margins and return on equity.
• An insider sold 1.07 million shares for approximately $23 million, nearly halving the director’s position. Institutional investors own a relatively small 8.1% stake, while insiders own 0.79%.

Redwire Corporation (NYSE:RDW - Get Free Report) fell 3.2% during trading on Monday . The company traded as low as $13.10 and last traded at $13.16. Approximately 18,792,983 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 29,556,109 shares. The stock had previously closed at $13.59.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Weiss Ratings restated a "sell (d-)" rating on shares of Redwire in a research report on Friday, July 17th. Truist Financial upgraded Redwire to a "strong-buy" rating in a research note on Friday, May 1st. Canaccord Genuity Group boosted their target price on Redwire from $14.00 to $15.00 and gave the company a "buy" rating in a report on Monday. Cantor Fitzgerald upped their price target on Redwire from $9.00 to $13.50 and gave the stock an "overweight" rating in a research note on Wednesday, August 5th. Finally, Alliance Global Partners reaffirmed a "buy" rating on shares of Redwire in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $14.44.

Redwire Trading Down 3.2%

The business has a 50-day moving average of $12.22 and a 200 day moving average of $11.32. The stock has a market cap of $3.14 billion, a PE ratio of -9.01 and a beta of 3.05. 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 issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.07. Redwire had a negative return on equity of 12.65% and a negative net margin of 57.26%.The firm had revenue of $117.07 million for the quarter, compared to analyst estimates of $107.10 million. Equities research analysts predict that Redwire Corporation will post -0.88 EPS for the current fiscal year.

Insider Activity

In other news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the business's stock in a transaction dated 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 owned 1,077,419 shares in the company, valued at approximately $23,142,960.12. The trade was a 49.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC acquired a new stake in shares of Redwire in the first quarter worth $28,000. KBC Group NV acquired a new position in shares of Redwire during the 1st quarter valued at $29,000. Sunbelt Securities Inc. boosted its position in Redwire by 601.1% during the 4th quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company's stock worth $30,000 after purchasing an additional 3,396 shares during the period. CWM LLC boosted its position in Redwire by 1,725.0% during the 4th quarter. CWM LLC now owns 4,088 shares of the company's stock worth $31,000 after purchasing an additional 3,864 shares during the period. Finally, Rockefeller Capital Management L.P. increased its holdings in Redwire by 1,054.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 4,016 shares of the company's stock valued at $31,000 after purchasing an additional 3,668 shares in the last quarter. 8.10% of the stock is owned by institutional investors and hedge funds.

Redwire Company Profile

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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