Redwire (NYSE:RDW) Shares Down 6% – Should You Sell?

Shares of Redwire Corporation (NYSE:RDW) traded down 6% on Friday. The company traded as low as $8.30 and last traded at $8.3750. 11,671,954 shares traded hands during trading, a decline of 54% from the average daily volume of 25,565,715 shares. The stock had previously closed at $8.91.

Wall Street Analysts Forecast Growth

RDW has been the topic of several recent research reports. Piper Sandler started coverage on Redwire in a report on Thursday. They issued a “neutral” rating and a $11.00 price target on the stock. Bank of America boosted their price objective on Redwire from $7.00 to $8.00 and gave the company an “underperform” rating in a report on Monday, August 31st. Canaccord Genuity Group boosted their price objective on Redwire from $14.00 to $15.00 and gave the company a “buy” rating in a report on Monday, August 10th. Jefferies Financial Group set a $15.00 target price on Redwire in a research report on Sunday, August 9th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Redwire in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $14.28.

Redwire Price Performance

The stock has a market capitalization of $2.09 billion, a P/E ratio of -5.74 and a beta of 3.12. The business’s 50 day simple moving average is $11.06 and its two-hundred day simple moving average is $11.80. The company has a quick ratio of 3.48, a current ratio of 3.92 and a debt-to-equity ratio of 0.03.

Redwire (NYSE:RDW) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.07. The firm had revenue of $117.07 million during the quarter, compared to analysts’ expectations of $107.10 million. Redwire had a negative net margin of 57.26% and a negative return on equity of 11.02%. As a group, sell-side analysts forecast that Redwire Corporation will post -0.73 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Ae Red Holdings, Llc sold 929,435 shares of the firm’s stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $11.34, for a total value of $10,539,792.90. Following the transaction, the director owned 147,984 shares of the company’s stock, valued at approximately $1,678,138.56. This trade represents a 86.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 stock. GAMMA Investing LLC raised its stake in shares of Redwire by 70.4% in the third quarter. GAMMA Investing LLC now owns 3,213 shares of the company’s stock worth $34,000 after purchasing an additional 1,327 shares during the last quarter. Parallel Advisors LLC bought a new position in shares of Redwire in the first quarter valued at approximately $28,000. KBC Group NV purchased a new position in shares of Redwire during the first quarter valued at approximately $29,000. IFP Advisors Inc boosted its position in shares of Redwire by 3,662.5% during the second quarter. IFP Advisors Inc now owns 3,612 shares of the company’s stock valued at $44,000 after buying an additional 3,516 shares during the last quarter. Finally, Rockefeller Capital Management L.P. boosted 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 valued at $31,000 after buying an additional 3,668 shares during the last quarter. 8.10% of the stock is owned by institutional investors.

About Redwire

Redwire Corporation is a space infrastructure and defense technology company that develops products and services for government and commercial customers. Its work supports space exploration, national security, civil space programs and the growing commercial space economy.

The company’s offerings include spacecraft platforms, avionics, sensors, deployable structures, solar arrays, in-space manufacturing systems, robotic technologies and components designed for satellite and space station applications.