Redwire (NYSE:RDW) Stock Price Up 14.6% – Here’s What Happened

Redwire Corporation (NYSE:RDW)’s share price rose 14.6% during mid-day trading on Friday. The company traded as high as $7.10 and last traded at $7.0950. 10,110,709 shares were traded during trading, a decline of 59% from the average session volume of 24,641,176 shares. The stock had previously closed at $6.19.

Key Headlines Impacting Redwire

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire reported a record backlog of $619.7 million, up nearly 75% year over year, a book-to-bill ratio of 1.73 and record gross margins. Its quarterly loss per share was narrower than analysts expected. These measures point to strong demand and improving operating performance. Redwire Q3 results
• Positive Sentiment: The company won an additional $20 million contract for Otter very-low-Earth-orbit testing and experimentation, adding to its project pipeline. Otter contract announcement
• Neutral Sentiment: Analysts trimmed price targets: B. Riley lowered its target to $14 but kept a Buy rating, while Piper Sandler cut its target to $8 and maintained Neutral. The target reductions temper the optimistic ratings. B. Riley analyst update Piper Sandler analyst update
• Negative Sentiment: Quarterly revenue of about $109 million fell well short of the roughly $127 million consensus. Management also discussed shipment delays, which could push revenue into later periods and weigh on near-term results despite the strong backlog. Q3 earnings call highlights

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on RDW. Guggenheim began coverage on Redwire in a research note on Monday, September 14th. They set a “neutral” rating on the stock. Wall Street Zen upgraded Redwire from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Canaccord Genuity Group dropped their target price on Redwire from $15.00 to $13.00 and set a “buy” rating for the company in a report on Friday. Jefferies Financial Group set a $15.00 target price on Redwire in a research report on Sunday, August 9th. Finally, Piper Sandler decreased their price target on Redwire from $11.00 to $8.00 and set a “neutral” rating on the stock in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Redwire has a consensus rating of “Hold” and an average price target of $14.28.

Redwire Trading Up 15.6%

The stock’s 50 day moving average is $9.88 and its two-hundred day moving average is $11.02. The company has a market capitalization of $1.79 billion, a PE ratio of -5.65 and a beta of 3.15. 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 posted its earnings results on Wednesday, November 4th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.04. The business had revenue of $109.03 million for the quarter, compared to the consensus estimate of $126.75 million. Redwire had a negative net margin of 52.36% and a negative return on equity of 9.84%. As a group, sell-side analysts predict that Redwire Corporation will post -0.73 EPS for the current fiscal year.

Insiders Place Their Bets

In other Redwire news, Director Ae Red Holdings, Llc sold 929,435 shares of the company’s stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $11.34, for a total transaction of $10,539,792.90. Following the completion of the sale, the director owned 147,984 shares in the company, valued at $1,678,138.56. This represents a 86.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.79% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in shares of Redwire during the 2nd quarter worth $196,514,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in Redwire during the third quarter valued at about $126,591,000. Van ECK Associates Corp grew its stake in Redwire by 173.0% in the second quarter. Van ECK Associates Corp now owns 6,851,228 shares of the company’s stock valued at $83,791,000 after purchasing an additional 4,341,424 shares during the last quarter. Bank of America Corp DE grew its stake 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 valued at $57,970,000 after purchasing an additional 6,730,414 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Redwire in the second quarter worth about $16,583,000. 8.10% of the stock is owned by institutional investors.

Redwire Company Profile

Redwire Corporation (NYSE: RDW) is a space infrastructure and defense technology company that develops products and services for government and commercial customers. Its capabilities support spacecraft, space stations, national security missions, and other applications across the space economy.

The company’s offerings include deployable solar arrays, spacecraft platforms, avionics, sensors, communications systems, digital engineering and mission-support services. Redwire also develops robotic systems, in-space manufacturing technologies, payloads, and other solutions designed to enable spacecraft operations and the production of materials in orbit.

Redwire was formed in 2020 through the combination of several space technology businesses backed by AE Industrial Partners and became a publicly traded company in 2021.