Redwire (NYSE:RDW) Trading Down 9% - Time to Sell?

Key Points

• Redwire shares fell 9% to about $7.80, well below their 50-day moving average of $13.82, amid high volatility and trading volume of roughly 15.4 million shares.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $15.44, although ratings range from Strong Buy to Sell.
• Redwire reported a significant quarterly earnings and revenue miss, posting adjusted EPS of -$0.40 versus expectations of -$0.16; separately, a director sold nearly half of its holdings in a transaction worth about $23 million.

Redwire Corporation (NYSE:RDW - Get Free Report) shares traded down 9% during trading on Wednesday . The company traded as low as $7.76 and last traded at $7.7950. Approximately 15,441,967 shares traded hands during trading, a decline of 48% from the average session volume of 29,946,049 shares. The stock had previously closed at $8.57.

Analysts Set New Price Targets

RDW has been the subject of several analyst reports. Jefferies Financial Group raised shares of Redwire to a "hold" rating in a report on Wednesday, June 10th. Wall Street Zen cut shares of Redwire from a "hold" rating to a "sell" rating in a research note on Saturday, July 4th. Canaccord Genuity Group lifted their target price on shares of Redwire from $12.00 to $14.00 and gave the company a "buy" rating in a research note on Monday, May 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Redwire in a report on Friday, July 17th. Finally, Truist Financial raised Redwire to a "strong-buy" rating in a report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Redwire has an average rating of "Moderate Buy" and an average price target of $15.44.

Redwire Price Performance

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 stock's 50-day moving average price is $13.82 and its 200-day moving average price is $11.36. The company has a market capitalization of $1.86 billion, a price-to-earnings ratio of -2.91 and a beta of 3.01.

Redwire (NYSE:RDW - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported ($0.40) earnings per share for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.24). The company 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 for the quarter was up 57.9% on a year-over-year basis. During the same period in the prior year, the business earned ($0.09) EPS. Equities research analysts anticipate that Redwire Corporation will post -0.81 earnings per share for the current year.

Insiders Place Their Bets

In other Redwire news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the company's stock in a transaction dated 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 transaction, the director directly owned 1,077,419 shares in the company, valued at approximately $23,142,960.12. This represents a 49.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.79% of the company's stock.

Institutional Investors Weigh In On Redwire

A number of institutional investors and hedge funds have recently modified their holdings of RDW. Parallel Advisors LLC acquired a new position in Redwire in the first quarter valued at approximately $28,000. KBC Group NV acquired a new stake in Redwire during the 1st quarter worth $29,000. Sunbelt Securities Inc. raised its position in shares of Redwire by 601.1% during the 4th quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company's stock valued at $30,000 after acquiring an additional 3,396 shares during the last quarter. CWM LLC raised its position in shares of Redwire by 1,725.0% during 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 during the last quarter. Finally, Rockefeller Capital Management L.P. lifted its stake in shares of 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 purchasing an additional 3,668 shares during the period. 8.10% of the stock is 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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