Redwire (NYSE:RDW) Stock Rating Upgraded by Jefferies Financial Group

Key Points

• Jefferies Financial Group upgraded Redwire to a hold rating, adding to a mixed analyst backdrop that currently leans toward Moderate Buy overall with a consensus target price of $15.44.
• Redwire stock was down 5.6% and opened at $14.86; despite the pullback, the company still has a market cap of about $2.85 billion and a very high beta of 2.92.
• The company’s latest quarterly results showed weaker-than-expected earnings and revenue, with EPS of -$0.40 versus estimates of -$0.16 and revenue of $96.97 million versus expectations of $105.94 million, even though revenue rose 57.9% year over year.

Redwire (NYSE:RDW - Get Free Report) was upgraded by research analysts at Jefferies Financial Group to a "hold" rating in a research report issued on Wednesday,Zacks.com reports.

A number of other equities analysts have also commented on RDW. Zacks Research raised shares of Redwire from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 11th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Redwire in a research report on Tuesday, April 21st. Canaccord Genuity Group raised their price target on shares of Redwire from $12.00 to $14.00 and gave the stock a "buy" rating in a research report on Monday, May 11th. Alliance Global Partners reaffirmed a "buy" rating on shares of Redwire in a research report on Wednesday, April 22nd. Finally, Truist Financial raised shares of 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 issued a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $15.44.

Redwire Stock Down 5.6%

Redwire stock opened at $14.86 on Wednesday. The stock has a market capitalization of $2.85 billion, a PE ratio of -5.55 and a beta of 2.92. Redwire has a twelve month low of $4.87 and a twelve month high of $26.64. 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 company has a 50 day moving average of $13.29 and a 200-day moving average of $10.38.

Redwire (NYSE:RDW - Get Free Report) last announced its quarterly 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 firm had revenue of $96.97 million during the quarter, compared to analyst estimates 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 business earned ($0.09) EPS. On average, equities research analysts anticipate that Redwire will post -0.76 EPS for the current fiscal year.

Insider Transactions at Redwire

In other Redwire news, Director Ae Red Holdings, Llc sold 7,500,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $9.15, for a total transaction of $68,625,000.00. Following the completion of the transaction, the director owned 36,135,217 shares in the company, valued at approximately $330,637,235.55. This trade represents a 17.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In the last three months, insiders have sold 23,327,795 shares of company stock worth $228,806,188. 0.79% of the stock is currently owned by company insiders.

Institutional Trading of Redwire

Hedge funds have recently modified their holdings of the stock. Bank of America Corp DE increased its stake in Redwire by 7,512.5% during the 1st quarter. Bank of America Corp DE now owns 6,820,003 shares of the company's stock valued at $57,970,000 after purchasing an additional 6,730,414 shares in the last quarter. AE Industrial Partners LP increased its stake in Redwire by 7.1% during the 3rd quarter. AE Industrial Partners LP now owns 91,598,704 shares of the company's stock valued at $823,472,000 after purchasing an additional 6,101,959 shares in the last quarter. State Street Corp increased its stake in Redwire by 61.1% during the 4th quarter. State Street Corp now owns 4,708,600 shares of the company's stock valued at $35,785,000 after purchasing an additional 1,786,038 shares in the last quarter. UBS Group AG increased its stake in Redwire by 140.8% during the 4th quarter. UBS Group AG now owns 2,039,902 shares of the company's stock valued at $15,503,000 after purchasing an additional 1,192,885 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Redwire during the 4th quarter valued at $7,676,000. Institutional investors own 8.10% of the company's stock.

Key Redwire News

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire remains a high-growth “picks and shovels” space infrastructure play, and some investors see the company as a beneficiary of broader enthusiasm for space stocks. The unusual call option activity also suggests speculative interest in the shares. MarketBeat unusual options activity
• Neutral Sentiment: Coverage around SpaceX’s upcoming IPO has put the space sector in the spotlight, which may be drawing more attention to Redwire as an adjacent public-space company. Redwire stock page
• Negative Sentiment: The expanded ATM program raises dilution concerns because issuing more shares can weigh on existing shareholders and signal that management wants flexibility to fund operations or acquisitions. Redwire establishes expanded ATM equity program
• Negative Sentiment: Commentary specifically tied Redwire’s drop to the $500 million equity program, with investors questioning whether dilution could slow the company’s growth story. Redwire’s US$500 Million ATM Raises Dilution Questions For Growth Story

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.