Redwire (NYSE:RDW) Shares Gap Down – Here’s Why

Redwire Corporation (NYSE:RDW) gapped down before the market opened on Tuesday . The stock had previously closed at $11.71, but opened at $11.00. Redwire shares last traded at $11.1470, with a volume of 8,930,120 shares changing hands.

Analysts Set New Price Targets

RDW has been the subject of several recent analyst reports. Cantor Fitzgerald dropped their price objective on shares of Redwire from $20.00 to $9.00 and set an “overweight” rating for the company in a report on Wednesday, December 10th. Bank of America lowered their target price on Redwire from $9.00 to $6.00 and set an “underperform” rating for the company in a research note on Wednesday, November 19th. Industrial Alliance Securities set a $9.00 price target on Redwire in a report on Thursday, November 6th. Canaccord Genuity Group reduced their price target on shares of Redwire from $17.50 to $11.00 and set a “buy” rating on the stock in a research report on Wednesday, November 12th. Finally, Alliance Global Partners restated a “buy” rating on shares of Redwire in a research report on Thursday, November 6th. Six analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $13.13.

Redwire Trading Down 8.5%

The business has a 50 day moving average of $7.47 and a 200 day moving average of $9.47. The firm has a market capitalization of $1.77 billion, a price-to-earnings ratio of -3.39 and a beta of 2.44. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.41 and a quick ratio of 1.05.

Redwire (NYSE:RDW) last posted its earnings results on Wednesday, November 5th. The company reported ($0.29) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.15). Redwire had a negative return on equity of 16.24% and a negative net margin of 70.32%.The company had revenue of $103.43 million for the quarter, compared to analyst estimates of $132.05 million. As a group, research analysts predict that Redwire Corporation will post -0.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Redwire news, Director Ae Red Holdings, Llc sold 12,656,683 shares of Redwire stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $10.51, for a total transaction of $133,021,738.33. Following the transaction, the director directly owned 61,541,253 shares in the company, valued at approximately $646,798,569.03. The trade was a 17.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Peter Anthony Cannito, Jr. purchased 32,155 shares of the company’s stock in a transaction dated Monday, November 10th. The shares were acquired at an average cost of $6.21 per share, for a total transaction of $199,682.55. Following the transaction, the chief executive officer owned 526,728 shares of the company’s stock, valued at $3,270,980.88. This trade represents a 6.50% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders acquired 56,065 shares of company stock worth $330,047 and sold 23,953,093 shares worth $252,001,857. 2.60% of the stock is owned by company insiders.

Institutional Trading of Redwire

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Abich Financial Wealth Management LLC bought a new position in shares of Redwire in the third quarter valued at about $41,000. Russell Investments Group Ltd. lifted its position in 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 acquiring an additional 3,672 shares during the last quarter. Ameritas Advisory Services LLC bought a new stake in shares of Redwire during the second quarter worth approximately $54,000. Caitong International Asset Management Co. Ltd grew its position in shares of Redwire by 440.4% in the third quarter. Caitong International Asset Management Co. Ltd now owns 6,620 shares of the company’s stock valued at $60,000 after purchasing an additional 5,395 shares during the last quarter. Finally, Strs Ohio bought a new position in shares of Redwire during the first quarter worth approximately $69,000. 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.