Redwire (NYSE:RDW) Stock Price Up 11.9% - Still a Buy?

Key Points

• Redwire shares jumped 11.9% to about $11.54 on Wednesday on lighter-than-average volume, and analysts hold a “Moderate Buy” consensus with an average price target of $13.89 (8 Buys, 2 Holds, 2 Sells).
• The company reported Q4 EPS of -$0.35, missing estimates by $0.19 while beating revenue at $108.8M, leaving Redwire unprofitable with negative margins and a projected FY EPS of -0.44.
• Significant insider selling is underway—Director Ae Red Holdings sold 2,034,536 shares for roughly $21.9M and insiders sold ~37.0M shares (~$401.5M) last quarter—raising potential dilution or governance concerns.

Redwire Corporation (NYSE:RDW - Get Free Report)'s share price was up 11.9% on Wednesday . The stock traded as high as $12.30 and last traded at $11.5360. Approximately 13,369,199 shares changed hands during mid-day trading, a decline of 43% from the average daily volume of 23,477,934 shares. The stock had previously closed at $10.31.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on RDW shares. Canaccord Genuity Group increased their price target on shares of Redwire from $11.00 to $12.00 and gave the company a "buy" rating in a research note on Friday, February 27th. Truist Financial raised shares of Redwire from a "hold" rating to a "buy" rating and increased their price target for the company from $13.00 to $15.00 in a research note on Monday, March 9th. Jefferies Financial Group dropped their price target on shares of Redwire from $13.00 to $12.00 and set a "buy" rating for the company in a research note on Friday, March 6th. Zacks Research upgraded shares of Redwire from a "strong sell" rating to a "hold" rating in a report on Wednesday, March 11th. Finally, Roth Mkm restated a "buy" rating and issued a $20.00 price objective on shares of Redwire in a report on Wednesday, January 28th. Eight analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $13.89.

Redwire Stock Performance

The firm's fifty day moving average price is $9.18 and its 200 day moving average price is $8.63. The company has a current ratio of 1.62, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The stock has a market capitalization of $2.19 billion, a price-to-earnings ratio of -4.80 and a beta of 2.49.

Redwire (NYSE:RDW - Get Free Report) last released its 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). The business had revenue of $108.79 million for the quarter, compared to analyst estimates of $98.78 million. Redwire had a negative return on equity of 13.04% and a negative net margin of 67.55%. Analysts forecast that Redwire Corporation will post -0.44 EPS for the current fiscal year.

Insider Transactions at Redwire

In other Redwire news, Director Ae Red Holdings, Llc sold 2,034,536 shares of the stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $10.77, for a total transaction of $21,911,952.72. Following the sale, the director directly owned 24,238,608 shares in the company, valued at $261,049,808.16. This represents a 7.74% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In the last quarter, insiders have sold 37,030,789 shares of company stock worth $401,525,382. 0.79% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Redwire

A number of hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC increased its position in shares of Redwire by 125.0% in the 1st quarter. AQR Capital Management LLC now owns 51,437 shares of the company's stock valued at $426,000 after purchasing an additional 28,576 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of Redwire by 352.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,265 shares of the company's stock valued at $2,945,000 after purchasing an additional 276,814 shares during the last quarter. Strs Ohio purchased a new stake in shares of Redwire in the 1st quarter valued at approximately $69,000. Rhumbline Advisers increased its position in shares of Redwire by 61.0% in the 2nd quarter. Rhumbline Advisers now owns 56,517 shares of the company's stock valued at $921,000 after purchasing an additional 21,417 shares during the last quarter. Finally, Invesco Ltd. increased its position in shares of Redwire by 57.6% in the 2nd quarter. Invesco Ltd. now owns 21,198 shares of the company's stock valued at $346,000 after purchasing an additional 7,750 shares during the last quarter. 8.10% of the stock is currently 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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