Redwire (NYSE:RDW) Trading Up 10.8% - Still a Buy?

Key Points

• Redwire shares jumped 10.8% to about $10.68, although trading volume was 33% below the daily average.
• Analyst sentiment remains mixed but leans positive: the stock has a consensus “Moderate Buy” rating and an average price target of $15.44, despite recent Sell and Hold downgrades.
• Redwire’s latest quarter missed expectations, reporting a $0.40 per-share loss and $96.97 million in revenue versus a $105.94 million estimate; a director also sold roughly $23 million in shares, reducing their stake by nearly half.

Redwire Corporation (NYSE:RDW - Get Free Report) shares shot up 10.8% during trading on Tuesday . The company traded as high as $10.71 and last traded at $10.6830. 19,727,461 shares were traded during trading, a decline of 33% from the average daily volume of 29,642,666 shares. The stock had previously closed at $9.64.

Analyst Ratings Changes

Several research firms have recently weighed in on RDW. Weiss Ratings reissued a "sell (d-)" rating on shares of Redwire in a research report on Friday, July 17th. Jefferies Financial Group upgraded Redwire to a "hold" rating in a research report on Wednesday, June 10th. Wall Street Zen cut 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 Redwire from $12.00 to $14.00 and gave the stock a "buy" rating in a report on Monday, May 11th. Finally, Truist Financial raised Redwire to a "strong-buy" rating in a research note on Friday, May 1st. One investment 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 issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $15.44.

Redwire Trading Up 10.8%

The firm's 50 day simple moving average is $13.21 and its two-hundred day simple moving average is $11.31. The stock has a market capitalization of $2.55 billion, a P/E ratio of -3.99 and a beta of 3.05. 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 (EPS) for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.24). The company had revenue of $96.97 million for the quarter, compared to the consensus estimate of $105.94 million. Redwire had a negative return on equity of 11.68% and a negative net margin of 80.90%.Redwire's revenue for the quarter was up 57.9% compared to the same quarter last year. During the same period last year, the company earned ($0.09) EPS. As a group, analysts forecast that Redwire Corporation will post -0.81 earnings per share for the current fiscal year.

Insider Transactions at Redwire

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. Insiders own 0.79% of the company's stock.

Hedge Funds Weigh In On Redwire

A number of institutional investors have recently modified their holdings of the company. AQR Capital Management LLC lifted its holdings in shares of Redwire by 125.0% in the 1st quarter. AQR Capital Management LLC now owns 51,437 shares of the company's stock worth $426,000 after purchasing an additional 28,576 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Redwire by 352.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 355,265 shares of the company's stock valued at $2,945,000 after purchasing an additional 276,814 shares in the last quarter. Strs Ohio acquired a new position in Redwire during the first quarter worth $69,000. Rhumbline Advisers raised its holdings in Redwire by 61.0% during the second quarter. Rhumbline Advisers now owns 56,517 shares of the company's stock worth $921,000 after buying an additional 21,417 shares during the last quarter. Finally, Invesco Ltd. lifted its stake in shares of Redwire by 57.6% in the second quarter. Invesco Ltd. now owns 21,198 shares of the company's stock valued at $346,000 after buying an additional 7,750 shares in the last quarter. 8.10% of the stock is 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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