Redwire (NYSE:RDW) Stock Price Up 9.5% - Here's What Happened

Key Points

• Redwire shares jumped 9.5% on Tuesday, trading as high as $9.54 after closing at $8.60 the prior day, though volume was below average at 19.5 million shares.
• Analyst sentiment remains mixed but generally constructive: Canaccord Genuity raised its price target to $14 and Truist upgraded the stock to strong-buy, while the consensus rating is still Moderate Buy with an average target of $15.44.
• The company’s recent results were weak on earnings, with a loss of $0.40 per share versus expectations for a smaller loss and revenue of $96.97 million below estimates, even as revenue rose 57.9% year over year.

Redwire Corporation (NYSE:RDW - Get Free Report)'s stock price rose 9.5% during trading on Tuesday . The company traded as high as $9.54 and last traded at $9.4150. 19,500,202 shares changed hands during trading, a decline of 36% from the average session volume of 30,651,469 shares. The stock had previously closed at $8.60.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on RDW shares. Canaccord Genuity Group boosted their price objective on shares of Redwire from $12.00 to $14.00 and gave the stock a "buy" rating in a research note on Monday, May 11th. Alliance Global Partners reaffirmed a "buy" rating on shares of Redwire in a research report on Wednesday, April 22nd. Wall Street Zen downgraded Redwire from a "hold" rating to a "sell" rating in a report on Saturday, July 4th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a research report on Friday. Finally, Truist Financial upgraded Redwire to a "strong-buy" rating in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $15.44.

Redwire Stock Performance

The stock has a market capitalization of $2.25 billion, a price-to-earnings ratio of -3.51 and a beta of 3.01. The company has a 50 day simple moving average of $14.33 and a 200-day simple moving average of $11.37. The company has a quick ratio of 1.37, a current ratio of 1.75 and a debt-to-equity ratio of 0.08.

Redwire (NYSE:RDW - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported ($0.40) earnings per share for the quarter, missing the consensus estimate of ($0.16) by ($0.24). The company had revenue of $96.97 million during 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 revenue was up 57.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.09) EPS. As a group, equities research analysts expect 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 stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $21.48, for a total value of $22,995,736.20. Following the transaction, 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 legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.79% of the stock is owned by insiders.

Hedge Funds Weigh In On Redwire

Large investors have recently modified their holdings of the company. Parallel Advisors LLC acquired a new position in shares of Redwire during the first quarter valued at about $28,000. KBC Group NV acquired a new stake in shares of Redwire in the 1st quarter worth about $29,000. Sunbelt Securities Inc. raised its holdings in shares of Redwire by 601.1% in the 4th 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. Rockefeller Capital Management L.P. lifted its position 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 acquiring an additional 3,668 shares in the last quarter. Finally, CWM LLC lifted its position in Redwire by 1,725.0% in the 4th quarter. CWM LLC now owns 4,088 shares of the company's stock valued at $31,000 after acquiring an additional 3,864 shares in the last quarter. 8.10% of the stock is currently owned by institutional investors.

About Redwire

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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