Redwire (NYSE:RDW) Trading Down 5.2% - Here's Why

Key Points

• Redwire shares fell 5.2% to $11.76, with about 15 million shares traded—48% below average volume.
• Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $14.44; targets from Jefferies and Canaccord Genuity are $15.
• Redwire exceeded quarterly expectations, reporting an adjusted loss of $0.09 per share versus estimates of $0.16 and revenue of $117.1 million versus $107.1 million, though it remains unprofitable.

Redwire Corporation (NYSE:RDW - Get Free Report)'s stock price was down 5.2% on Thursday . The stock traded as low as $11.38 and last traded at $11.76. Approximately 15,014,336 shares traded hands during trading, a decline of 48% from the average daily volume of 28,856,160 shares. The stock had previously closed at $12.40.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on RDW shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a report on Friday, July 17th. Jefferies Financial Group set a $15.00 price objective on Redwire in a research note on Sunday, August 9th. Truist Financial raised Redwire to a "strong-buy" rating in a research report on Friday, May 1st. Wall Street Zen raised Redwire from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Finally, Canaccord Genuity Group boosted their price objective on Redwire from $14.00 to $15.00 and gave the stock a "buy" rating in a report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Redwire has an average rating of "Hold" and an average target price of $14.44.

Redwire Price Performance

The stock has a fifty day moving average price of $11.36 and a 200-day moving average price of $11.39. The company has a market cap of $2.94 billion, a PE ratio of -8.05 and a beta of 3.05. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.92 and a quick ratio of 3.48.

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

Insider Activity

In related news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $21.48, for a total transaction of $22,995,736.20. Following the completion of the sale, the director directly owned 1,077,419 shares in the company, valued at approximately $23,142,960.12. This trade represents a 49.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.79% of the stock is owned by company insiders.

Institutional Trading of Redwire

Institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Redwire during the 2nd quarter valued at $196,514,000. Van ECK Associates Corp raised its holdings in Redwire by 173.0% during the second quarter. Van ECK Associates Corp now owns 6,851,228 shares of the company's stock valued at $83,791,000 after buying an additional 4,341,424 shares in the last quarter. Bank of America Corp DE raised its holdings in Redwire by 7,512.5% during the first quarter. Bank of America Corp DE now owns 6,820,003 shares of the company's stock valued at $57,970,000 after buying an additional 6,730,414 shares in the last quarter. State Street Corp lifted its position in shares of Redwire by 61.1% in the fourth quarter. State Street Corp now owns 4,708,600 shares of the company's stock worth $35,785,000 after buying an additional 1,786,038 shares during the last quarter. Finally, Vanguard Group Inc. boosted its stake in shares of Redwire by 2.9% during the 3rd quarter. Vanguard Group Inc. now owns 3,242,848 shares of the company's stock worth $29,153,000 after acquiring an additional 91,045 shares in 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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