Redwire (NYSE:RDW) Stock Price Down 8.4% on Insider Selling

Key Points

• Stock fell 8.4% after director Ae Red Holdings, LLC sold 3.93M shares on Jan 29 and 4.85M shares on Jan 28 (about $114.8M combined); volume rose ~19% to 42.48M shares and the stock traded as low as $11.41 (last $11.73 vs prior close $12.81).
• Fundamentals and analyst view are mixed: Redwire is unprofitable (Q EPS -$0.29 vs. -$0.14 expected, revenue $103.4M vs. $132.1M expected, negative net margin ~70%), with a $1.94B market cap and an average analyst price target of about $13.75 amid Buy/Hold/Sell split ratings.

Redwire Corporation (NYSE:RDW - Get Free Report)'s stock price traded down 8.4% during trading on Friday after an insider sold shares in the company. The stock traded as low as $11.41 and last traded at $11.73. 42,481,938 shares were traded during trading, an increase of 19% from the average session volume of 35,603,438 shares. The stock had previously closed at $12.81.

Specifically, Director Ae Red Holdings, Llc sold 3,932,686 shares of the firm's stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $12.80, for a total transaction of $50,338,380.80. Following the transaction, the director owned 52,760,700 shares in the company, valued at $675,336,960. This trade represents a 6.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ae Red Holdings, Llc sold 4,847,867 shares of the firm's stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $13.29, for a total transaction of $64,428,152.43. Following the sale, the director owned 56,693,386 shares of the company's stock, valued at $753,455,099.94. The trade was a 7.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Analyst Ratings Changes

RDW has been the subject of a number of analyst reports. Truist Financial set a $13.00 price objective on shares of Redwire in a research note on Friday, January 9th. Roth Mkm restated a "buy" rating and issued a $20.00 price target on shares of Redwire in a research report on Wednesday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Redwire in a research note on Thursday, January 22nd. Cantor Fitzgerald cut their target price on shares of Redwire from $20.00 to $9.00 and set an "overweight" rating on the stock in a research note on Wednesday, December 10th. Finally, Canaccord Genuity Group reduced their target price on Redwire from $17.50 to $11.00 and set a "buy" rating for the company in a report on Wednesday, November 12th. Six research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $13.75.

Redwire Trading Down 8.4%

The firm has a market capitalization of $1.94 billion, a PE ratio of -3.70 and a beta of 2.44. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.41 and a quick ratio of 1.05. The company has a fifty day moving average of $8.50 and a 200-day moving average of $9.34.

Redwire (NYSE:RDW - Get Free Report) last issued its earnings results on Wednesday, November 5th. The company reported ($0.29) EPS for the quarter, missing analysts' consensus estimates of ($0.14) by ($0.15). The firm had revenue of $103.43 million during the quarter, compared to analysts' expectations of $132.05 million. Redwire had a negative net margin of 70.32% and a negative return on equity of 16.24%. On average, sell-side analysts anticipate that Redwire Corporation will post -0.85 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Redwire

Hedge funds have recently bought and sold shares of the business. AE Industrial Partners LP raised its stake in shares of Redwire by 139.3% in the 2nd quarter. AE Industrial Partners LP now owns 85,496,745 shares of the company's stock valued at $1,394,000 after acquiring an additional 49,765,262 shares in the last quarter. Voya Investment Management LLC bought a new stake in Redwire during the third quarter worth approximately $20,372,000. Hood River Capital Management LLC acquired a new position in Redwire during the second quarter valued at approximately $36,206,000. Cooper Creek Partners Management LLC bought a new position in shares of Redwire in the second quarter valued at approximately $32,652,000. Finally, UBS Group AG lifted its stake in shares of Redwire by 140.8% in the fourth quarter. UBS Group AG now owns 2,039,902 shares of the company's stock worth $15,503,000 after buying an additional 1,192,885 shares during 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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