Redwire (NYSE:RDW) Trading Up 14.9% on Analyst Upgrade

Redwire Corporation (NYSE:RDW) was up 14.9% during trading on Thursday after Jefferies Financial Group upgraded the stock to a hold rating. The company traded as high as $17.28 and last traded at $17.0790. Approximately 66,844,970 shares changed hands during trading, an increase of 111% from the average daily volume of 31,706,250 shares. The stock had previously closed at $14.87.

A number of other equities analysts have also recently issued reports on the company. Canaccord Genuity Group upped their price objective on Redwire from $12.00 to $14.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Redwire in a report on Tuesday, April 21st. Truist Financial upgraded Redwire to a “strong-buy” rating in a report on Friday, May 1st. Zacks Research upgraded Redwire from a “strong sell” rating to a “hold” rating in a report on Wednesday, March 11th. Finally, Alliance Global Partners restated a “buy” rating on shares of Redwire in a report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $15.44.

Insider Activity at Redwire

In other news, Director Ae Red Holdings, Llc sold 7,500,000 shares of the firm’s stock in a transaction that occurred on 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 $330,637,235.55. This trade represents a 17.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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.

Key Headlines Impacting Redwire

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire is benefiting from sector-wide enthusiasm tied to the upcoming SpaceX IPO, with investors looking for other public space names that could attract follow-on capital and sympathy buying. The Biggest Opportunity From SpaceX’s IPO May Surprise You
• Neutral Sentiment: Jefferies Financial Group upgraded Redwire to hold, which suggests the stock may have already priced in a lot of near-term optimism and is not necessarily viewed as undervalued from here. Zacks.com
• Negative Sentiment: Redwire’s expanded US$500 million at-the-market equity program is raising dilution concerns, since issuing additional shares could pressure per-share value even if it strengthens the balance sheet and funds growth. Redwire’s US$500 Million ATM Raises Dilution Questions For Growth Story
• Negative Sentiment: Market commentary also points to Redwire’s recent slide being driven by worries that the new equity program could dilute shareholders and weigh on the stock despite its strong longer-term space infrastructure growth story. The $500 Million Reason Redwire Stock Is Down Today

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RDW. Bank of America Corp DE lifted its stake in shares of Redwire by 7,512.5% in the 1st 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 period. AE Industrial Partners LP lifted its stake in shares of Redwire by 7.1% in the 3rd quarter. AE Industrial Partners LP now owns 91,598,704 shares of the company’s stock valued at $823,472,000 after purchasing an additional 6,101,959 shares during the period. State Street Corp lifted its stake in shares of Redwire by 61.1% in the 4th quarter. State Street Corp now owns 4,708,600 shares of the company’s stock valued at $35,785,000 after purchasing an additional 1,786,038 shares during the period. UBS Group AG lifted its stake in shares of Redwire by 140.8% in the 4th quarter. UBS Group AG now owns 2,039,902 shares of the company’s stock valued at $15,503,000 after purchasing an additional 1,192,885 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Redwire in the 4th quarter valued at approximately $7,676,000. Hedge funds and other institutional investors own 8.10% of the company’s stock.

Redwire Trading Up 14.9%

The company has a market cap of $3.28 billion, a PE ratio of -6.37 and a beta of 2.92. 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 stock has a 50 day moving average price of $13.29 and a 200 day moving average price of $10.38.

Redwire (NYSE:RDW) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($0.40) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.24). Redwire had a negative net margin of 80.90% and a negative return on equity of 11.68%. The company had revenue of $96.97 million for the quarter, compared to the consensus estimate of $105.94 million. During the same period last year, the business earned ($0.09) EPS. The firm’s quarterly revenue was up 57.9% on a year-over-year basis. Sell-side analysts predict that Redwire Corporation will post -0.76 EPS for the current fiscal year.

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.