Redwire (NYSE:RDW) Trading Up 6.2% - What's Next?

Key Points

• Redwire Corporation stock rose 6.2% on Thursday, reaching a high of $9.84, despite trading volume being down by 49% compared to its average.
• A variety of analysts have recently adjusted their target prices for Redwire, with Canaccord Genuity lowering theirs from $21.00 to $17.50 while maintaining a "buy" rating.
• The company reported significant financial challenges, missing earnings estimates by $0.28 and showing a net margin of -71.95% for the last quarter.

Redwire Corporation (NYSE:RDW - Get Free Report) was up 6.2% on Thursday . The company traded as high as $9.84 and last traded at $9.73. Approximately 1,667,466 shares were traded during mid-day trading, a decline of 49% from the average daily volume of 3,266,434 shares. The stock had previously closed at $9.16.

Analyst Ratings Changes

A number of equities analysts have weighed in on RDW shares. Canaccord Genuity Group decreased their target price on Redwire from $21.00 to $17.50 and set a "buy" rating on the stock in a research note on Monday, August 11th. Roth Capital restated a "buy" rating on shares of Redwire in a research note on Tuesday, June 24th. Truist Financial set a $16.00 target price on Redwire and gave the stock a "hold" rating in a research note on Thursday, June 26th. B. Riley reduced their price objective on Redwire from $25.00 to $20.00 and set a "buy" rating on the stock in a research report on Friday, August 8th. Finally, Bank of America started coverage on Redwire in a research report on Monday, August 18th. They set an "underperform" rating and a $10.00 price objective on the stock. Seven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $18.07.

Redwire Price Performance

The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.11 and a current ratio of 1.46. The stock has a market capitalization of $1.46 billion, a P/E ratio of -3.11 and a beta of 2.47. The firm has a 50-day moving average price of $9.99 and a 200 day moving average price of $12.18.

Redwire (NYSE:RDW - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported ($0.39) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.28). The company had revenue of $61.76 million for the quarter, compared to analysts' expectations of $80.48 million. Redwire had a negative net margin of 71.95% and a negative return on equity of 32.67%. On average, analysts expect that Redwire Corporation will post -0.85 EPS for the current year.

Insiders Place Their Bets

In related news, major shareholder Bain Capital Credit Member, Ll sold 11,000,000 shares of the stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $7.83, for a total transaction of $86,130,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 2.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Redwire

Several institutional investors have recently bought and sold shares of the stock. AE Industrial Partners LP boosted its holdings in Redwire by 139.3% during the 2nd quarter. AE Industrial Partners LP now owns 85,496,745 shares of the company's stock valued at $1,394,000 after acquiring an additional 49,765,262 shares during the period. Hood River Capital Management LLC purchased a new stake in Redwire in the 2nd quarter worth approximately $36,206,000. Cooper Creek Partners Management LLC purchased a new stake in Redwire in the 2nd quarter worth approximately $32,652,000. Geode Capital Management LLC lifted its holdings in Redwire by 77.1% in the 2nd quarter. Geode Capital Management LLC now owns 935,297 shares of the company's stock worth $15,248,000 after buying an additional 407,131 shares during the period. Finally, LBP AM SA lifted its holdings in Redwire by 24.8% in the 1st quarter. LBP AM SA now owns 496,230 shares of the company's stock worth $4,114,000 after buying an additional 98,616 shares during the period. 8.10% of the stock is currently owned by hedge funds and other institutional investors.

Redwire Company Profile

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft.

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