Redwire (NYSE:RDW) Stock Price Down 4.2% - Time to Sell?

Key Points

• Redwire shares fell 4.2% in mid-day trading, hitting a low of $9.29 and closing at $9.335, with volume below its daily average.
• Analyst sentiment is mixed: the stock carries a consensus “Moderate Buy” rating with an average target price of $15.44, but some firms recently downgraded or reiterated sell ratings.
• Recent results showed weaker-than-expected earnings, with Redwire missing EPS and revenue estimates despite 57.9% year-over-year revenue growth, while insiders have sold a large amount of stock over the last 90 days.

Redwire Corporation (NYSE:RDW - Get Free Report) fell 4.2% during mid-day trading on Wednesday . The stock traded as low as $9.29 and last traded at $9.3350. 19,174,458 shares changed hands during trading, a decline of 38% from the average daily volume of 31,070,127 shares. The stock had previously closed at $9.74.

Analyst Ratings Changes

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

Redwire Stock Performance

The business has a fifty day simple moving average of $14.47 and a 200-day simple moving average of $11.34. The company has a quick ratio of 1.37, a current ratio of 1.75 and a debt-to-equity ratio of 0.08. The firm has a market cap of $2.23 billion, a P/E ratio of -3.48 and a beta of 3.01.

Redwire (NYSE:RDW - Get Free Report) last announced its 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 business had revenue of $96.97 million for the quarter, compared to the consensus estimate of $105.94 million. Redwire had a negative net margin of 80.90% and a negative return on equity of 11.68%. The business's quarterly revenue was up 57.9% on a year-over-year basis. During the same quarter last year, the firm posted ($0.09) EPS. On average, sell-side analysts predict that Redwire Corporation will post -0.81 EPS for the current fiscal year.

Insider Buying and Selling

In other Redwire news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $21.48, for a total value of $22,995,736.20. Following the sale, the director owned 1,077,419 shares in the company, valued at approximately $23,142,960.12. This represents a 49.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold a total of 8,994,567 shares of company stock worth $106,558,778 over the last 90 days. Insiders own 0.79% of the company's stock.

Institutional Trading of Redwire

A number of hedge funds have recently made changes to their positions in the stock. Parallel Advisors LLC bought a new position in Redwire during the 1st quarter valued at approximately $28,000. KBC Group NV bought a new stake in Redwire in the first quarter worth $29,000. Sunbelt Securities Inc. grew its stake in shares of Redwire by 601.1% in the fourth quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company's stock worth $30,000 after acquiring an additional 3,396 shares during the last quarter. CWM LLC grew its stake in shares of Redwire by 1,725.0% in the fourth quarter. CWM LLC now owns 4,088 shares of the company's stock worth $31,000 after acquiring an additional 3,864 shares during the last quarter. Finally, Rockefeller Capital Management L.P. increased its holdings in shares of 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 acquiring an additional 3,668 shares in the last quarter. 8.10% of the stock is owned by institutional investors.

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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