Redwire (NYSE:RDW) Trading Down 15.6% – Should You Sell?

Shares of Redwire Corporation (NYSE:RDW) dropped 15.6% during mid-day trading on Monday . The stock traded as low as $20.30 and last traded at $20.74. Approximately 56,039,950 shares were traded during trading, an increase of 86% from the average daily volume of 30,201,844 shares. The stock had previously closed at $24.57.

Analyst Upgrades and Downgrades

RDW has been the subject of several research analyst reports. Jefferies Financial Group lowered shares of Redwire from a “buy” rating to a “hold” rating and raised their price target for the stock from $13.00 to $24.00 in a research note on Monday. Zacks Research upgraded shares of Redwire from a “strong sell” rating to a “hold” rating in a research note on Wednesday, March 11th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Redwire in a research note on Tuesday, April 21st. Truist Financial upgraded shares of Redwire to a “strong-buy” rating in a research note on Friday, May 1st. Finally, Canaccord Genuity Group lifted their price objective on shares of Redwire from $12.00 to $14.00 and gave the company a “buy” rating in a research note on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Redwire has an average rating of “Moderate Buy” and a consensus price target of $15.44.

Redwire Price Performance

The business’s 50 day moving average is $11.73 and its two-hundred day moving average is $9.65. The firm has a market capitalization of $3.98 billion, a PE ratio of -7.74 and a beta of 2.91. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.37 and a current ratio of 1.75.

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

Insider Activity at Redwire

In other news, Director Ae Red Holdings, Llc sold 7,500,000 shares of the business’s stock in a transaction on Tuesday, March 24th. The shares were sold at an average price of $9.15, for a total transaction of $68,625,000.00. Following the completion of the transaction, the director directly owned 36,135,217 shares in the company, valued at $330,637,235.55. The trade was a 17.19% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last ninety days, insiders have sold 23,327,795 shares of company stock worth $228,806,188. 0.79% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RDW. Parallel Advisors LLC purchased a new position in Redwire in the first quarter worth $28,000. KBC Group NV purchased a new stake in Redwire during the first quarter valued at about $29,000. Sunbelt Securities Inc. boosted its position in Redwire by 601.1% during the fourth 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 during the period. CWM LLC boosted its position in Redwire by 1,725.0% during the fourth quarter. CWM LLC now owns 4,088 shares of the company’s stock valued at $31,000 after buying an additional 3,864 shares during the period. Finally, Rockefeller Capital Management L.P. boosted its position in 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 period. 8.10% of the stock is currently owned by hedge funds and other institutional investors.

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.