Redwire (NYSE:RDW) Trading Up 11.9% - Here's Why

Key Points

• Redwire shares surged 11.9% to about $9.65, with roughly 18.9 million shares traded. The move occurred despite the stock remaining below its 50-day and 200-day moving averages.
• Analyst views are mixed, but the overall consensus is “Moderate Buy”, with an average price target of $15.44. Ratings include one Strong Buy, six Buys, three Holds and two Sells.
• Redwire’s latest quarterly results missed expectations, reporting an adjusted loss of $0.40 per share versus the expected $0.16 loss and revenue of $96.97 million versus estimates of $105.94 million. The company continues to post negative profitability metrics, including an 80.9% net margin.

Redwire Corporation (NYSE:RDW - Get Free Report)'s stock price traded up 11.9% during trading on Monday . The stock traded as high as $9.74 and last traded at $9.6450. Approximately 18,878,789 shares were traded during trading, a decline of 36% from the average session volume of 29,709,990 shares. The stock had previously closed at $8.62.

Analysts Set New Price Targets

Several analysts have issued reports on RDW shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Redwire in a research note 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. Truist Financial upgraded Redwire to a "strong-buy" rating in a report on Friday, May 1st. Finally, Alliance Global Partners reissued a "buy" rating on shares of Redwire in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $15.44.

Redwire Stock Up 11.9%

The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.37 and a current ratio of 1.75. The company has a fifty day simple moving average of $13.37 and a two-hundred day simple moving average of $11.31. The firm has a market capitalization of $2.30 billion, a PE ratio of -3.60 and a beta of 3.01.

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 the consensus estimate of ($0.16) by ($0.24). The firm had revenue of $96.97 million for the quarter, compared to analysts' expectations 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 quarterly revenue was up 57.9% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.09) EPS. Analysts forecast that Redwire Corporation will post -0.81 EPS for the current fiscal year.

Insider Buying and Selling

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

Hedge Funds Weigh In On Redwire

Hedge funds and other institutional investors have recently modified their holdings of the business. Bank of America Corp DE increased 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 during the period. State Street Corp lifted its holdings in Redwire by 61.1% during 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 period. Vanguard Group Inc. lifted its holdings in Redwire by 2.9% during the third quarter. Vanguard Group Inc. now owns 3,242,848 shares of the company's stock worth $29,153,000 after buying an additional 91,045 shares during the period. UBS Group AG boosted its position 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 acquiring an additional 1,192,885 shares in the last quarter. Finally, Geode Capital Management LLC boosted its position in Redwire by 46.9% during the 4th quarter. Geode Capital Management LLC now owns 1,764,643 shares of the company's stock valued at $13,413,000 after acquiring an additional 563,259 shares in the last quarter. 8.10% of the stock is currently owned by institutional investors.

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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