Redwire Target of Unusually Large Options Trading (NYSE:RDW)

Key Points

• Unusually large options activity: Traders bought 42,865 call options on Redwire, a 47% increase versus the average daily call volume of 29,069.
• Major insider selling: Director Ae Red Holdings sold 7,500,000 shares at an average $9.15 (≈$68.63M), and insiders have sold 37,030,789 shares in the past 90 days while owning just 0.79% of the company.
• Mixed fundamentals and sentiment: Redwire missed Q earnings (EPS -$0.35 vs. -$0.16 expected) but beat on revenue, the stock jumped to $11.54 on heavy volume, and analysts hold a consensus "Moderate Buy" with an average price target of $13.89.

Redwire Corporation (NYSE:RDW - Get Free Report) saw unusually large options trading activity on Wednesday. Stock traders purchased 42,865 call options on the stock. This is an increase of 47% compared to the average daily volume of 29,069 call options.

Analysts Set New Price Targets

A number of research firms have recently commented on RDW. Jefferies Financial Group lowered their target price on Redwire from $13.00 to $12.00 and set a "buy" rating for the company in a research report on Friday, March 6th. Canaccord Genuity Group increased their target price on Redwire from $11.00 to $12.00 and gave the company a "buy" rating in a research report on Friday, February 27th. HC Wainwright reiterated a "buy" rating and set a $22.00 target price on shares of Redwire in a research report on Tuesday, December 23rd. Weiss Ratings reiterated a "sell (d-)" rating on shares of Redwire in a research report on Thursday, January 22nd. Finally, Zacks Research upgraded Redwire from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 11th. Eight analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Redwire currently has a consensus rating of "Moderate Buy" and an average price target of $13.89.

Insiders Place Their Bets

In other Redwire news, Director Ae Red Holdings, Llc sold 7,500,000 shares of the company'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 directly owned 36,135,217 shares in the company, valued at $330,637,235.55. This represents a 17.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. In the last ninety days, insiders sold 37,030,789 shares of company stock valued at $401,525,382. Corporate insiders own 0.79% of the company's stock.

Institutional Trading of Redwire

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sunbelt Securities Inc. lifted its position in shares of Redwire by 601.1% during the fourth quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company's stock worth $30,000 after purchasing an additional 3,396 shares during the last quarter. Rockefeller Capital Management L.P. lifted its position in shares of Redwire by 1,054.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 4,016 shares of the company's stock worth $31,000 after purchasing an additional 3,668 shares during the last quarter. CWM LLC lifted its position in shares of Redwire by 1,725.0% during the fourth quarter. CWM LLC now owns 4,088 shares of the company's stock worth $31,000 after purchasing an additional 3,864 shares during the last quarter. Abich Financial Wealth Management LLC bought a new stake in shares of Redwire during the third quarter worth $41,000. Finally, Russell Investments Group Ltd. lifted its position in shares of Redwire by 308.6% during the third quarter. Russell Investments Group Ltd. now owns 4,862 shares of the company's stock worth $44,000 after purchasing an additional 3,672 shares during the last quarter. 8.10% of the stock is owned by hedge funds and other institutional investors.

Redwire Trading Up 11.9%

Redwire stock traded up $1.23 during midday trading on Wednesday, reaching $11.54. The stock had a trading volume of 32,118,106 shares, compared to its average volume of 23,815,885. The company has a quick ratio of 1.27, a current ratio of 1.62 and a debt-to-equity ratio of 0.08. Redwire has a 52-week low of $4.87 and a 52-week high of $22.25. The firm has a market cap of $2.21 billion, a price-to-earnings ratio of -4.87 and a beta of 2.49. The company has a fifty day moving average of $9.18 and a 200 day moving average of $8.63.

Redwire (NYSE:RDW - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The company reported ($0.35) earnings per share for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.19). Redwire had a negative return on equity of 13.04% and a negative net margin of 67.55%.The firm had revenue of $108.79 million during the quarter, compared to analysts' expectations of $98.78 million. On average, analysts anticipate that Redwire will post -0.44 earnings per share 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.

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