Truist Financial Upgrades Redwire (NYSE:RDW) to "Strong-Buy"

Key Points

• Truist upgraded Redwire (NYSE:RDW) to "Strong-Buy", and MarketBeat shows a consensus of Moderate Buy with an average price target of $13.89 (1 Strong Buy, 7 Buy, 2 Hold, 2 Sell).
• Redwire reported a quarterly EPS miss of ($0.35) vs. ($0.16) despite revenue beating estimates ($108.8M), remains unprofitable with a -67.6% net margin and analysts forecast ~-0.49 EPS for the year.
• Insiders sold heavily: a director sold 7.5M shares at ~$9.15 ($68.6M) and insiders disposed of 29.44M shares (~$295.6M) in the quarter, leaving insiders with just 0.79% ownership.

Redwire (NYSE:RDW - Get Free Report) was upgraded by investment analysts at Truist Financial to a "strong-buy" rating in a research note issued to investors on Friday,Zacks.com reports.

Several other equities analysts also recently commented on RDW. Zacks Research upgraded Redwire from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 11th. Canaccord Genuity Group boosted their price objective on Redwire from $11.00 to $12.00 and gave the stock a "buy" rating in a research note on Friday, February 27th. Alliance Global Partners reissued a "buy" rating on shares of Redwire in a research note on Wednesday, April 22nd. Weiss Ratings reissued a "sell (d-)" rating on shares of Redwire in a research note on Tuesday, April 21st. Finally, Jefferies Financial Group reduced their price objective on Redwire from $13.00 to $12.00 and set a "buy" rating on the stock in a research note on Friday, March 6th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $13.89.

Redwire Stock Performance

Shares of RDW opened at $9.34 on Friday. The company has a quick ratio of 1.27, a current ratio of 1.62 and a debt-to-equity ratio of 0.08. The business has a 50-day simple moving average of $9.38 and a two-hundred day simple moving average of $8.63. The stock has a market cap of $1.79 billion, a price-to-earnings ratio of -3.94 and a beta of 2.41. Redwire has a 52 week low of $4.87 and a 52 week high of $22.25.

Redwire (NYSE:RDW - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported ($0.35) EPS for the quarter, missing the consensus estimate of ($0.16) by ($0.19). Redwire had a negative net margin of 67.55% and a negative return on equity of 13.04%. The business had revenue of $108.79 million during the quarter, compared to analysts' expectations of $98.78 million. On average, analysts expect that Redwire will post -0.49 EPS for the current year.

Insider Activity at Redwire

In related news, Director Ae Red Holdings, Llc sold 7,500,000 shares of the 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 transaction, the director owned 36,135,217 shares of the company's stock, valued at $330,637,235.55. This represents a 17.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders sold a total of 29,444,316 shares of company stock worth $295,555,335 over the last quarter. Corporate insiders own 0.79% of the company's stock.

Institutional Trading of Redwire

A number of hedge funds have recently bought and sold shares of the stock. AE Industrial Partners LP lifted its holdings in Redwire by 7.1% during the third quarter. AE Industrial Partners LP now owns 91,598,704 shares of the company's stock worth $823,472,000 after buying an additional 6,101,959 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 lifted its holdings in Redwire by 140.8% during the fourth quarter. UBS Group AG now owns 2,039,902 shares of the company's stock worth $15,503,000 after buying an additional 1,192,885 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in Redwire by 46.9% during the fourth quarter. Geode Capital Management LLC now owns 1,764,643 shares of the company's stock worth $13,413,000 after buying an additional 563,259 shares during the period. Hedge funds and other institutional investors own 8.10% of the company's stock.

About Redwire

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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