Redwire (NYSE:RDW) Shares Gap Down – Should You Sell?

Redwire Corporation (NYSE:RDW) gapped down prior to trading on Wednesday . The stock had previously closed at $20.58, but opened at $19.50. Redwire shares last traded at $19.11, with a volume of 12,585,750 shares changing hands.

Wall Street Analyst Weigh In

RDW has been the subject of several research reports. Alliance Global Partners reaffirmed a “buy” rating on shares of Redwire in a research report on Wednesday, April 22nd. Zacks Research raised Redwire from a “strong sell” rating to a “hold” rating in a research report on Wednesday, March 11th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Redwire in a research report on Tuesday, April 21st. Canaccord Genuity Group lifted their target price on Redwire from $12.00 to $14.00 and gave the company a “buy” rating in a research report on Monday, May 11th. Finally, Truist Financial raised Redwire to a “strong-buy” rating in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $15.44.

Redwire Stock Up 15.1%

The firm has a 50 day moving average price of $12.61 and a 200-day moving average price of $10.06. 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 has a market cap of $4.11 billion, a PE ratio of -8.00 and a beta of 2.92.

Redwire (NYSE:RDW) last announced its quarterly earnings data on Wednesday, May 6th. The company reported ($0.40) earnings per share (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 net margin of 80.90% and a negative return on equity of 11.68%. The business’s quarterly revenue was up 57.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.09) EPS. 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 7,500,000 shares of Redwire stock in a transaction dated Tuesday, March 24th. The stock was sold at an average price of $9.15, for a total value of $68,625,000.00. Following the completion of the transaction, the director owned 36,135,217 shares in the company, valued at approximately $330,637,235.55. This trade represents a 17.19% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last three months, insiders sold 23,327,795 shares of company stock valued at $228,806,188. Company insiders own 0.79% of the company’s stock.

Hedge Funds Weigh In On Redwire

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Parallel Advisors LLC purchased a new position in shares of Redwire in the 1st quarter valued at about $28,000. KBC Group NV purchased a new stake in Redwire during the first quarter worth approximately $29,000. Sunbelt Securities Inc. lifted its stake in Redwire by 601.1% during the fourth quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company’s stock worth $30,000 after purchasing an additional 3,396 shares during the last quarter. Rockefeller Capital Management L.P. lifted its stake 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 worth $31,000 after purchasing an additional 3,668 shares during the last quarter. Finally, CWM LLC lifted its stake in Redwire by 1,725.0% during the fourth quarter. CWM LLC now owns 4,088 shares of the company’s stock worth $31,000 after purchasing an additional 3,864 shares during the last quarter. Hedge funds and other institutional investors own 8.10% of the company’s stock.

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.