Redwire (NYSE:RDW) Shares Down 5.6% – Time to Sell?

Redwire Corporation (NYSE:RDW)’s share price was down 5.6% on Wednesday . The stock traded as low as $14.81 and last traded at $14.8640. Approximately 30,382,472 shares traded hands during trading, a decline of 3% from the average daily volume of 31,384,248 shares. The stock had previously closed at $15.75.

Redwire News Roundup

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire was upgraded to hold by Jefferies, which can signal improving analyst confidence, even if the rating is still neutral. Jefferies upgrade to hold
• Neutral Sentiment: Investor attention on space stocks increased ahead of the SpaceX IPO, putting Redwire in the spotlight as a “picks and shovels” space infrastructure name. SpaceX prepares its IPO, Redwire stock in spotlight
• Neutral Sentiment: Redwire expanded its at-the-market equity program, which gives it more flexibility to raise capital but also raises dilution concerns for existing shareholders. Redwire Establishes Expanded At-The-Market Equity Program
• Negative Sentiment: A director, Ae Red Holdings, sold more than 1.07 million shares, a large reduction in ownership that may worry investors about insider confidence. SEC filing for director stock sale
• Negative Sentiment: Several recent articles questioned Redwire’s valuation and growth narrative, with one piece arguing expectations may be catching up to reality and another citing dilution concerns from the new $500 million ATM program. Redwire’s US$500 Million ATM Raises Dilution Questions
• Negative Sentiment: A short-seller attack on space stocks added pressure across the sector, which likely weighed on RDW alongside broader profit-taking in the group. Space Stocks Get Torched

Analyst Ratings Changes

Several analysts have recently weighed in on RDW shares. Canaccord Genuity Group raised their price objective on shares of Redwire from $12.00 to $14.00 and gave the company a “buy” rating in a research report on Monday, May 11th. Jefferies Financial Group upgraded shares of Redwire to a “hold” rating in a research report on Wednesday. Alliance Global Partners restated a “buy” rating on shares of Redwire in a research report on Wednesday, April 22nd. Weiss Ratings restated a “sell (d-)” rating on shares of Redwire in a research report on Tuesday, April 21st. Finally, Zacks Research upgraded shares of Redwire from a “strong sell” rating to a “hold” rating in a research report on Wednesday, March 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $15.44.

Redwire Stock Performance

The company has a market cap of $2.89 billion, a PE ratio of -5.63 and a beta of 2.92. The business’s 50-day moving average is $13.46 and its 200 day moving average is $10.47. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.37 and a current ratio of 1.75.

Redwire (NYSE:RDW) last issued its 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 during the quarter, compared to analysts’ expectations of $105.94 million. Redwire had a negative return on equity of 11.68% and a negative net margin of 80.90%.Redwire’s revenue for the quarter was up 57.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.09) EPS. On average, equities research analysts predict that Redwire Corporation will post -0.76 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Ae Red Holdings, Llc sold 7,500,000 shares of Redwire stock in a transaction on Tuesday, March 24th. The shares were sold at an average price of $9.15, for a total value of $68,625,000.00. Following 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In the last 90 days, insiders have sold 24,386,745 shares of company stock valued at $251,685,658. 0.79% of the stock is owned by company insiders.

Hedge Funds Weigh In On Redwire

A number of large investors have recently added to or reduced their stakes in RDW. AQR Capital Management LLC raised its position in Redwire by 125.0% in the 1st quarter. AQR Capital Management LLC now owns 51,437 shares of the company’s stock worth $426,000 after purchasing an additional 28,576 shares during the period. Goldman Sachs Group Inc. grew its holdings in Redwire by 352.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,265 shares of the company’s stock worth $2,945,000 after acquiring an additional 276,814 shares during the last quarter. Strs Ohio bought a new stake in Redwire in the 1st quarter worth $69,000. Rhumbline Advisers grew its holdings in Redwire by 61.0% in the 2nd quarter. Rhumbline Advisers now owns 56,517 shares of the company’s stock worth $921,000 after acquiring an additional 21,417 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in Redwire by 57.6% in the 2nd quarter. Invesco Ltd. now owns 21,198 shares of the company’s stock worth $346,000 after acquiring an additional 7,750 shares during the last quarter. 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.