Redwire (NYSE:RDW) Trading Down 8.7% – Should You Sell?

Redwire Corporation (NYSE:RDW) dropped 8.7% during mid-day trading on Tuesday . The company traded as low as $13.18 and last traded at $13.5350. Approximately 45,221,712 shares traded hands during trading, an increase of 40% from the average daily volume of 32,192,887 shares. The stock had previously closed at $14.83.

Wall Street Analysts Forecast Growth

RDW has been the subject of a number of analyst reports. Canaccord Genuity Group lifted their price objective on Redwire from $12.00 to $14.00 and gave the company a “buy” rating in a report on Monday, May 11th. Jefferies Financial Group raised Redwire to a “hold” rating in a report on Wednesday, June 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of Redwire in a report on Tuesday, April 21st. Truist Financial raised Redwire to a “strong-buy” rating in a report on Friday, May 1st. Finally, Alliance Global Partners restated a “buy” rating on shares of Redwire in a research note on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $15.44.

Redwire Stock Performance

The company has a market capitalization of $2.60 billion, a price-to-earnings ratio of -5.05 and a beta of 2.91. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.75 and a quick ratio of 1.37. The stock has a 50 day moving average price of $13.68 and a two-hundred day moving average price of $10.60.

Redwire (NYSE:RDW) last announced its earnings results 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 business had revenue of $96.97 million during the quarter, compared to analyst estimates of $105.94 million. During the same quarter last year, the business posted ($0.09) earnings per share. The business’s quarterly revenue was up 57.9% compared to the same quarter last year. On average, analysts predict that Redwire Corporation will post -0.76 EPS for the current fiscal year.

Insider Buying and Selling at Redwire

In other news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the firm’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $21.48, for a total value of $22,995,736.20. Following the completion of the sale, the director directly owned 1,077,419 shares in the company, valued at approximately $23,142,960.12. This trade represents a 49.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders sold 23,292,752 shares of company stock valued at $240,640,212 in the last three months. Company 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 RDW. Bank of America Corp DE increased its position in Redwire by 7,512.5% in the first quarter. Bank of America Corp DE now owns 6,820,003 shares of the company’s stock worth $57,970,000 after purchasing an additional 6,730,414 shares during the period. AE Industrial Partners LP increased its position in Redwire by 7.1% in the third quarter. AE Industrial Partners LP now owns 91,598,704 shares of the company’s stock worth $823,472,000 after purchasing an additional 6,101,959 shares during the period. State Street Corp increased its position in Redwire by 61.1% in the fourth quarter. State Street Corp now owns 4,708,600 shares of the company’s stock worth $35,785,000 after purchasing an additional 1,786,038 shares during the period. UBS Group AG increased its position in Redwire by 140.8% in the fourth quarter. UBS Group AG now owns 2,039,902 shares of the company’s stock worth $15,503,000 after purchasing an additional 1,192,885 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Redwire in the fourth quarter worth about $7,676,000. 8.10% of the stock is currently owned by institutional investors and hedge funds.

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.