Redwire (NYSE:RDW) Rating Lowered to Sell at Wall Street Zen

Redwire (NYSE:RDW) was downgraded by stock analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Saturday, Wall Street Zen reports.

Several other brokerages have also recently commented on RDW. Weiss Ratings restated a “sell (d-)” rating on shares of Redwire in a research report on Thursday, October 15th. Piper Sandler decreased their price objective on Redwire from $11.00 to $8.00 and set a “neutral” rating on the stock in a report on Friday. Guggenheim initiated coverage on Redwire in a report on Monday, September 14th. They issued a “neutral” rating for the company. Canaccord Genuity Group reduced their price target on shares of Redwire from $15.00 to $13.00 and set a “buy” rating on the stock in a research report on Friday. Finally, B. Riley Financial cut their price objective on shares of Redwire from $15.00 to $14.00 and set a “buy” rating for the company in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $14.28.

Redwire Stock Performance

RDW stock opened at $7.21 on Friday. Redwire has a 52 week low of $4.87 and a 52 week high of $26.64. The company has a fifty day simple moving average of $9.80 and a two-hundred day simple moving average of $11.01. The company has a current ratio of 3.92, a quick ratio of 3.48 and a debt-to-equity ratio of 0.03.

Redwire (NYSE:RDW) last released its earnings results on Wednesday, November 4th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.04. Redwire had a negative return on equity of 11.02% and a negative net margin of 57.26%. The firm had revenue of $109.03 million during the quarter, compared to analyst estimates of $126.75 million. Research analysts predict that Redwire will post -0.73 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Ae Red Holdings, Llc sold 929,435 shares of the stock in a transaction that occurred on Wednesday, September 23rd. The stock was sold at an average price of $11.34, for a total value of $10,539,792.90. Following the completion of the transaction, the director owned 147,984 shares of the company’s stock, valued at approximately $1,678,138.56. This represents a 86.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.79% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in Redwire during the 2nd quarter worth approximately $196,514,000. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Redwire during the 3rd quarter valued at $126,591,000. Van ECK Associates Corp boosted its stake in shares of Redwire by 173.0% in the 2nd quarter. Van ECK Associates Corp now owns 6,851,228 shares of the company’s stock valued at $83,791,000 after purchasing an additional 4,341,424 shares in the last quarter. Bank of America Corp DE increased its holdings in Redwire by 7,512.5% during 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. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Redwire during the second quarter worth approximately $16,583,000. 8.10% of the stock is currently owned by hedge funds and other institutional investors.

Key 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

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.