Redwire (NYSE:RDW) Trading Up 14.9% on Analyst Upgrade

Key Points

• Redwire shares jumped 14.9% after Jefferies Financial Group upgraded the stock to hold, with the stock trading as high as $17.28 on unusually heavy volume.
• Analyst sentiment remains mixed: several firms have recently raised ratings or price targets, but the consensus view is only Moderate Buy with an average target price of $15.44.
• Despite the rally, investors are watching dilution risks from Redwire’s expanded $500 million at-the-market equity program, even as institutional ownership and interest in the space sector remain supportive.

Redwire Corporation (NYSE:RDW - Get Free Report) was up 14.9% during trading on Thursday after Jefferies Financial Group upgraded the stock to a hold rating. The company traded as high as $17.28 and last traded at $17.0790. Approximately 66,844,970 shares changed hands during trading, an increase of 111% from the average daily volume of 31,706,250 shares. The stock had previously closed at $14.87.

A number of other equities analysts have also recently issued reports on the company. Canaccord Genuity Group upped their price objective on Redwire from $12.00 to $14.00 and gave the stock a "buy" rating in a report on Monday, May 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a report on Tuesday, April 21st. Truist Financial upgraded Redwire to a "strong-buy" rating in a report on Friday, May 1st. Zacks Research upgraded Redwire from a "strong sell" rating to a "hold" rating in a report on Wednesday, March 11th. Finally, Alliance Global Partners restated a "buy" rating on shares of Redwire in a report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $15.44.

Insider Activity at Redwire

In other news, Director Ae Red Holdings, Llc sold 7,500,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 24th. The stock was sold at an average price of $9.15, for a total value of $68,625,000.00. Following the completion of the transaction, the director owned 36,135,217 shares in the company, valued at $330,637,235.55. This trade represents a 17.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In the last three months, insiders sold 23,327,795 shares of company stock valued at $228,806,188. Company insiders own 0.79% of the company's stock.

Key Headlines Impacting Redwire

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire is benefiting from sector-wide enthusiasm tied to the upcoming SpaceX IPO, with investors looking for other public space names that could attract follow-on capital and sympathy buying. The Biggest Opportunity From SpaceX’s IPO May Surprise You
• Neutral Sentiment: Jefferies Financial Group upgraded Redwire to hold, which suggests the stock may have already priced in a lot of near-term optimism and is not necessarily viewed as undervalued from here. Zacks.com
• Negative Sentiment: Redwire’s expanded US$500 million at-the-market equity program is raising dilution concerns, since issuing additional shares could pressure per-share value even if it strengthens the balance sheet and funds growth. Redwire’s US$500 Million ATM Raises Dilution Questions For Growth Story
• Negative Sentiment: Market commentary also points to Redwire’s recent slide being driven by worries that the new equity program could dilute shareholders and weigh on the stock despite its strong longer-term space infrastructure growth story. The $500 Million Reason Redwire Stock Is Down Today

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RDW. Bank of America Corp DE lifted its stake in shares of Redwire by 7,512.5% in the 1st quarter. Bank of America Corp DE now owns 6,820,003 shares of the company's stock valued at $57,970,000 after purchasing an additional 6,730,414 shares during the period. AE Industrial Partners LP lifted its stake in shares of Redwire by 7.1% in the 3rd quarter. AE Industrial Partners LP now owns 91,598,704 shares of the company's stock valued at $823,472,000 after purchasing an additional 6,101,959 shares during the period. State Street Corp lifted its stake in shares of Redwire by 61.1% in the 4th quarter. State Street Corp now owns 4,708,600 shares of the company's stock valued at $35,785,000 after purchasing an additional 1,786,038 shares during the period. UBS Group AG lifted its stake in shares of Redwire by 140.8% in the 4th quarter. UBS Group AG now owns 2,039,902 shares of the company's stock valued at $15,503,000 after purchasing an additional 1,192,885 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Redwire in the 4th quarter valued at approximately $7,676,000. Hedge funds and other institutional investors own 8.10% of the company's stock.

Redwire Trading Up 14.9%

The company has a market cap of $3.28 billion, a PE ratio of -6.37 and a beta of 2.92. The company has a current ratio of 1.75, a quick ratio of 1.37 and a debt-to-equity ratio of 0.08. The stock has a 50 day moving average price of $13.29 and a 200 day moving average price of $10.38.

Redwire (NYSE:RDW - Get Free Report) last posted its quarterly earnings data 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). Redwire had a negative net margin of 80.90% and a negative return on equity of 11.68%. The company had revenue of $96.97 million for the quarter, compared to the consensus estimate of $105.94 million. During the same period last year, the business earned ($0.09) EPS. The firm's quarterly revenue was up 57.9% on a year-over-year basis. Sell-side analysts predict that Redwire Corporation will post -0.76 EPS for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.