Redwire (NYSE:RDW) Stock Falls 6% – Here’s Why

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

Analyst Upgrades and Downgrades

RDW has been the topic of several research reports. Jefferies Financial Group set a $15.00 price target on Redwire in a research note on Sunday, August 9th. Cantor Fitzgerald boosted their price target on shares of Redwire from $9.00 to $13.50 and gave the stock an “overweight” rating in a research note on Wednesday, August 5th. Bank of America increased their price objective on shares of Redwire from $7.00 to $8.00 and gave the company an “underperform” rating in a report on Monday, August 31st. Guggenheim initiated coverage on shares of Redwire in a research note on Monday, September 14th. They issued a “neutral” rating on the stock. Finally, Alliance Global Partners reaffirmed a “buy” rating on shares of Redwire in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Redwire has an average rating of “Hold” and a consensus target price of $14.28.

Redwire Price Performance

The company has a market cap of $2.09 billion, a price-to-earnings ratio of -5.74 and a beta of 3.12. The company has a quick ratio of 3.48, a current ratio of 3.92 and a debt-to-equity ratio of 0.03. The company’s fifty day moving average price is $11.16 and its two-hundred day moving average price is $11.82.

Redwire (NYSE:RDW) last released its earnings results on Wednesday, August 5th. The company reported ($0.09) EPS for the quarter, beating the consensus estimate of ($0.16) by $0.07. Redwire had a negative return on equity of 11.02% and a negative net margin of 57.26%. The firm had revenue of $117.07 million for the quarter, compared to analysts’ expectations of $107.10 million. On average, equities research analysts forecast that Redwire Corporation will post -0.70 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 shares were sold at an average price of $11.34, for a total transaction of $10,539,792.90. Following the sale, the director directly owned 147,984 shares of the company’s stock, valued at approximately $1,678,138.56. This represents a 86.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. GAMMA Investing LLC increased its stake in shares of Redwire by 70.4% during the 3rd 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. Bouchey Financial Group Ltd. bought a new position in Redwire during the second quarter worth about $141,000. Tidal Investments LLC bought a new position in Redwire during the second quarter worth about $7,717,000. Integrated Wealth Concepts LLC bought a new position in Redwire during the second quarter worth about $635,000. Finally, IFP Advisors Inc increased its position in Redwire by 3,662.5% during the second quarter. IFP Advisors Inc now owns 3,612 shares of the company’s stock worth $44,000 after buying an additional 3,516 shares during the last quarter. 8.10% of the stock is currently owned by institutional investors and hedge funds.

Redwire Company Profile

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.