Redwire (NYSE:RDW) Stock Price Up 12.4% - Time to Buy?

Key Points

• Shares jumped 12.4% on Friday to about $10.34, but trading volume was down sharply (≈6.77M shares vs a 23.93M average).
• Redwire missed the quarter with EPS of ($0.40) vs. ($0.16) expected and revenue of $96.97M vs. $105.94M expected, though revenue rose 57.9% year‑over‑year and the company remains unprofitable with a negative net margin (~80.9%).
• The street consensus is a "Moderate Buy" with a $13.89 target, but there has been heavy insider selling recently (≈24.76M shares sold in the last 90 days) and insiders now own only about 0.79% of the stock.

Redwire Corporation (NYSE:RDW - Get Free Report) rose 12.4% during trading on Friday . The company traded as high as $9.88 and last traded at $10.3370. Approximately 6,770,341 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 23,931,402 shares. The stock had previously closed at $9.20.

Wall Street Analysts Forecast Growth

RDW has been the topic of a number of research reports. Truist Financial raised Redwire to a "strong-buy" rating in a report on Friday, May 1st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Redwire in a report on Tuesday, April 21st. Zacks Research raised Redwire from a "strong sell" rating to a "hold" rating in a report on Wednesday, March 11th. Roth Mkm reaffirmed a "buy" rating and issued a $20.00 price objective on shares of Redwire in a report on Wednesday, January 28th. Finally, Jefferies Financial Group reduced their target price on Redwire from $13.00 to $12.00 and set a "buy" rating on the stock in a report on Friday, March 6th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $13.89.

Redwire Trading Up 15.6%

The company has a market capitalization of $2.04 billion, a price-to-earnings ratio of -3.96 and a beta of 2.41. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.62. The firm has a fifty day moving average price of $9.44 and a 200-day moving average price of $8.63.

Redwire (NYSE:RDW - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported ($0.40) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.16) by ($0.24). The company had revenue of $96.97 million for the quarter, compared to analyst estimates of $105.94 million. Redwire had a negative return on equity of 12.05% and a negative net margin of 80.90%.The business's revenue for the quarter was up 57.9% compared to the same quarter last year. During the same period last year, the company posted ($0.09) earnings per share. As a group, equities analysts anticipate that Redwire Corporation will post -0.49 EPS for the current year.

Insider Buying and Selling at Redwire

In related news, Director Ae Red Holdings, Llc sold 977,887 shares of the company's stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $10.57, for a total transaction of $10,336,265.59. Following the completion of the sale, the director directly owned 21,494,349 shares in the company, valued at $227,195,268.93. This represents a 4.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In the last ninety days, insiders sold 24,763,287 shares of company stock worth $243,300,159. 0.79% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Redwire

A number of hedge funds have recently made changes to their positions in RDW. Farther Finance Advisors LLC grew its stake in Redwire by 4.4% during the fourth quarter. Farther Finance Advisors LLC now owns 20,897 shares of the company's stock worth $159,000 after purchasing an additional 877 shares during the period. Tower Research Capital LLC TRC raised its stake in shares of Redwire by 32.3% in the second quarter. Tower Research Capital LLC TRC now owns 6,279 shares of the company's stock valued at $102,000 after buying an additional 1,533 shares during the period. Jones Financial Companies Lllp raised its stake in shares of Redwire by 24.0% in the third quarter. Jones Financial Companies Lllp now owns 12,617 shares of the company's stock valued at $111,000 after buying an additional 2,442 shares during the period. Huntleigh Advisors Inc. raised its stake in shares of Redwire by 4.2% in the third quarter. Huntleigh Advisors Inc. now owns 61,837 shares of the company's stock valued at $556,000 after buying an additional 2,488 shares during the period. Finally, BNP Paribas Financial Markets raised its stake in shares of Redwire by 12.0% in the second quarter. BNP Paribas Financial Markets now owns 30,396 shares of the company's stock valued at $495,000 after buying an additional 3,248 shares during the period. 8.10% of the stock is currently 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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