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

Redwire Corporation (NYSE:RDW)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $24.00, but opened at $22.94. Redwire shares last traded at $24.4230, with a volume of 20,448,298 shares.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on RDW. Canaccord Genuity Group upped their target price on shares of Redwire from $12.00 to $14.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Alliance Global Partners reiterated a “buy” rating on shares of Redwire in a research note on Wednesday, April 22nd. Jefferies Financial Group reiterated a “buy” rating and issued a $13.00 price target on shares of Redwire in a research note on Sunday, May 10th. Truist Financial upgraded shares of Redwire to a “strong-buy” rating in a research note on Friday, May 1st. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Redwire in a research note on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Redwire currently has a consensus rating of “Moderate Buy” and an average price target of $14.22.

Redwire Stock Performance

The firm has a market cap of $4.77 billion, a PE ratio of -9.22 and a beta of 2.41. The company has a current ratio of 1.75, a quick ratio of 1.37 and a debt-to-equity ratio of 0.08. The firm’s 50 day simple moving average is $11.12 and its 200 day simple moving average is $9.38.

Redwire (NYSE:RDW) last announced its quarterly earnings results on Wednesday, May 6th. The company reported ($0.40) EPS for the quarter, missing the consensus estimate of ($0.16) by ($0.24). The company had revenue of $96.97 million during the quarter, compared to analysts’ expectations of $105.94 million. Redwire had a negative return on equity of 11.68% and a negative net margin of 80.90%.The firm’s revenue for the quarter was up 57.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.09) EPS. On average, research analysts forecast that Redwire Corporation will post -0.7 EPS for the current fiscal year.

Insider Activity

In other news, Director Ae Red Holdings, Llc sold 977,887 shares of the company’s stock in a transaction dated Tuesday, April 21st. The shares were sold at an average price of $10.57, for a total transaction of $10,336,265.59. Following the sale, the director directly owned 21,494,349 shares in the company, valued at approximately $227,195,268.93. This represents a 4.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last 90 days, insiders have sold 23,327,795 shares of company stock worth $228,806,188. 0.79% of the stock is currently owned by corporate insiders.

Institutional Trading of Redwire

Several hedge funds have recently made changes to their positions in RDW. Parallel Advisors LLC purchased a new stake in shares of Redwire during the 1st quarter valued at about $28,000. KBC Group NV purchased a new stake in shares of Redwire during the 1st quarter valued at about $29,000. Sunbelt Securities Inc. raised its position in shares of Redwire by 601.1% during the 4th quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company’s stock valued at $30,000 after buying an additional 3,396 shares in the last quarter. CWM LLC raised its position in shares of Redwire by 1,725.0% during the 4th quarter. CWM LLC now owns 4,088 shares of the company’s stock valued at $31,000 after buying an additional 3,864 shares in the last quarter. Finally, Rockefeller Capital Management L.P. raised its position in shares of Redwire by 1,054.0% during the 4th 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 in the last quarter. 8.10% of the stock is currently owned by hedge funds and other institutional investors.

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.