Redwire (NYSE:RDW) Shares Up 14.6% – Should You Buy?

Redwire Corporation (NYSE:RDW)’s stock price shot up 14.6% during 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.

More Redwire News

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire reported record backlog of $619.7 million, up nearly 75% year over year, and a book-to-bill ratio of 1.73. Gross margins also reached a record, supporting the view that demand remains solid. Redwire Q3 results
• Positive Sentiment: The company won a $20 million contract for additional Otter very-low-Earth-orbit testing and experimentation, adding to its program work. Otter contract announcement
• Neutral Sentiment: Analyst actions were mixed: B. Riley lowered its price target to $14 but kept a Buy rating, while Piper Sandler cut its target to $8 and maintained Neutral. B. Riley rating Piper Sandler rating
• Negative Sentiment: Quarterly revenue of about $109 million fell short of analysts’ roughly $127 million estimate. Although the adjusted loss per share was narrower than expected, management cited shipment delays that are affecting revenue timing and the outlook. Q3 earnings-call highlights

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Bank of America lifted their price target on Redwire from $7.00 to $8.00 and gave the company an “underperform” rating in a research note on Monday, August 31st. Cantor Fitzgerald raised their price objective on Redwire from $9.00 to $13.50 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Alliance Global Partners restated a “buy” rating on shares of Redwire in a research report on Thursday, August 6th. Guggenheim started coverage on Redwire in a research report on Monday, September 14th. They issued a “neutral” rating for the company. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Redwire in a research note on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $14.28.

Redwire Trading Up 16.4%

The company’s 50-day moving average price is $9.80 and its 200-day moving average price is $11.01. The firm has a market cap of $1.80 billion, a price-to-earnings ratio of -5.72 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 released its quarterly earnings results on Wednesday, November 4th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.10) by $0.04. Redwire had a negative net margin of 52.36% and a negative return on equity of 9.84%. The firm had revenue of $109.03 million during the quarter, compared to the consensus estimate of $126.75 million. Equities analysts expect that Redwire Corporation will post -0.70 EPS for the current fiscal year.

Insider Transactions at Redwire

In other Redwire news, Director Ae Red Holdings, Llc sold 929,435 shares of the business’s stock in a transaction that occurred 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 directly owned 147,984 shares in the company, valued at approximately $1,678,138.56. The trade was a 86.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.79% of the company’s stock.

Institutional Trading of Redwire

Several large investors have recently made changes to their positions in RDW. Moors & Cabot Inc. lifted its stake in shares of Redwire by 108.1% in the third quarter. Moors & Cabot Inc. now owns 181,918 shares of the company’s stock worth $1,899,000 after buying an additional 94,511 shares in the last quarter. Allworth Financial LP boosted its position in Redwire by 136.2% during the third quarter. Allworth Financial LP now owns 17,341 shares of the company’s stock worth $181,000 after acquiring an additional 10,000 shares during the last quarter. Fulcrum Asset Management LLP acquired a new position in Redwire during the third quarter worth about $151,000. StoneX Group Inc. purchased a new stake in Redwire during the 3rd quarter valued at about $137,000. Finally, Pictet Asset Management Holding SA grew its stake in Redwire by 30.4% during the 3rd quarter. Pictet Asset Management Holding SA now owns 32,317 shares of the company’s stock valued at $337,000 after acquiring an additional 7,543 shares in the last quarter. 8.10% of the stock is currently owned by hedge funds and other institutional investors.

About Redwire

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.