Redwire (NYSE:RDW) Trading Down 4.4% - Here's What Happened

Key Points

• Redwire shares fell 4.4% to about $12.38 in mid-day trading, with 13.8 million shares changing hands—roughly 52% below the average daily volume.
• Analyst sentiment remains mixed: recent firms set price targets between $13.50 and $15.00, while the broader analyst consensus is a “Hold” rating with an average target of $14.44.
• Redwire beat quarterly expectations, reporting an adjusted loss of $0.09 per share versus the expected $0.16 loss and revenue of $117.07 million versus estimates of $107.10 million. However, the company continues to report negative margins and return on equity.

Redwire Corporation (NYSE:RDW - Get Free Report) fell 4.4% during mid-day trading on Wednesday . The company traded as low as $11.94 and last traded at $12.3760. 13,780,797 shares changed hands during mid-day trading, a decline of 52% from the average daily volume of 28,943,174 shares. The stock had previously closed at $12.94.

Analysts Set New Price Targets

A number of research firms recently weighed in on RDW. Canaccord Genuity Group increased their price target on Redwire from $14.00 to $15.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Jefferies Financial Group set a $15.00 target price on shares of Redwire in a report on Sunday, August 9th. Alliance Global Partners restated a "buy" rating on shares of Redwire in a report on Thursday, August 6th. Cantor Fitzgerald raised their price objective on shares of Redwire from $9.00 to $13.50 and gave the stock an "overweight" rating in a research note on Wednesday, August 5th. Finally, Truist Financial upgraded shares of Redwire to a "strong-buy" rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $14.44.

Redwire Trading Down 4.4%

The business's 50-day simple moving average is $11.40 and its 200-day simple moving average is $11.39. The company has a market cap of $3.09 billion, a PE ratio of -8.48 and a beta of 3.05. The company has a current ratio of 3.92, a quick ratio of 3.48 and a debt-to-equity ratio of 0.03.

Redwire (NYSE:RDW - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.07. Redwire had a negative return on equity of 11.02% and a negative net margin of 57.26%.The business had revenue of $117.07 million during the quarter, compared to analyst estimates of $107.10 million. As a group, analysts expect that Redwire Corporation will post -0.68 EPS for the current fiscal year.

Insider Activity at Redwire

In related 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 transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.79% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of RDW. AQR Capital Management LLC boosted its stake in shares of Redwire by 125.0% during the 1st quarter. AQR Capital Management LLC now owns 51,437 shares of the company's stock worth $426,000 after acquiring an additional 28,576 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in 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 buying an additional 276,814 shares during the last quarter. Strs Ohio acquired a new position in Redwire in the 1st quarter valued at $69,000. Rhumbline Advisers raised its holdings in Redwire by 61.0% in the 2nd quarter. Rhumbline Advisers now owns 56,517 shares of the company's stock worth $921,000 after acquiring an additional 21,417 shares during the period. Finally, Invesco Ltd. raised its holdings in Redwire by 57.6% in the 2nd quarter. Invesco Ltd. now owns 21,198 shares of the company's stock worth $346,000 after acquiring an additional 7,750 shares during the period. Institutional investors and hedge funds own 8.10% of the company's stock.

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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