Redwire (NYSE:RDW) Stock Price Down 8.1% – Here’s Why

Redwire Corporation (NYSE:RDW) dropped 8.1% during mid-day trading on Monday . The company traded as low as $13.08 and last traded at $13.1810. 6,079,993 shares traded hands during trading, a decline of 81% from the average daily volume of 32,188,625 shares. The stock had previously closed at $14.35.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on RDW shares. Canaccord Genuity Group boosted their target price 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. 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. Wall Street Zen raised Redwire from a “sell” rating to a “hold” rating in a report on Saturday. Finally, Truist Financial raised Redwire to a “strong-buy” rating in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Redwire currently has an average rating of “Moderate Buy” and a consensus price target of $15.44.

Redwire Price Performance

The stock has a market cap of $3.10 billion, a PE ratio of -4.84 and a beta of 2.91. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.75 and a quick ratio of 1.37. The firm’s 50 day moving average price is $14.03 and its two-hundred day moving average price is $10.85.

Redwire (NYSE:RDW) last announced 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 business 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 business’s quarterly revenue was up 57.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.09) earnings per share. On average, research analysts expect that Redwire Corporation will post -0.76 earnings per share for the current year.

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 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 directly owned 36,135,217 shares of the company’s stock, valued at $330,637,235.55. This trade represents a 17.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 23,211,433 shares of company stock valued at $239,826,208 over the last three months. 0.79% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Militia Capital Management LLC purchased a new stake in shares of Redwire in the first quarter worth about $281,000. Parallel Advisors LLC bought a new position in shares of Redwire in the first quarter valued at approximately $28,000. Bank of America Corp DE lifted its stake in 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 worth $57,970,000 after purchasing an additional 6,730,414 shares in the last quarter. Janus Henderson Group PLC lifted its stake in Redwire by 157.5% in the 1st quarter. Janus Henderson Group PLC now owns 54,600 shares of the company’s stock worth $463,000 after purchasing an additional 33,400 shares in the last quarter. Finally, Amundi boosted its holdings in Redwire by 55.4% in the 1st quarter. Amundi now owns 40,197 shares of the company’s stock valued at $342,000 after purchasing an additional 14,337 shares during the period. Hedge funds and other institutional investors own 8.10% of the company’s stock.

About Redwire

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.