Redwire (NYSE:RDW) Stock Falls 15% – Time to Sell?

Redwire Corporation (NYSE:RDW) shares traded down 15% during mid-day trading on Thursday. The company traded as low as $6.62 and last traded at $6.5630. 4,815,208 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 24,599,844 shares. The stock had previously closed at $7.72.

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

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Wall Street Zen cut shares of Redwire from a “hold” rating to a “sell” rating in a research report on Saturday. Alliance Global Partners reiterated a “buy” rating on shares of Redwire in a report on Thursday, August 6th. Cantor Fitzgerald increased their price target on shares of Redwire from $9.00 to $13.50 and gave the company an “overweight” rating in a research note on Wednesday, August 5th. Piper Sandler dropped their price target on shares of Redwire from $11.00 to $8.00 and set a “neutral” rating for the company in a research note on Friday. Finally, Guggenheim assumed coverage on shares of Redwire in a report on Monday, September 14th. They set a “neutral” rating for the company. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $14.28.

Redwire Stock Up 16.4%

The firm’s 50 day simple moving average is $9.80 and its 200-day simple moving average is $11.01. The company has a market cap of $1.80 billion, a price-to-earnings ratio of -5.72 and a beta of 3.15. The company has a debt-to-equity ratio of 0.03, a current ratio of 3.92 and a quick ratio of 3.48.

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

Insider Transactions at Redwire

In related news, Director Ae Red Holdings, Llc sold 929,435 shares of the business’s stock in a transaction dated 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 transaction, the director owned 147,984 shares in the company, valued at $1,678,138.56. The trade was a 86.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.79% of the stock is owned by company insiders.

Institutional Investors Weigh In On Redwire

Several large investors have recently modified their holdings of RDW. Parallel Advisors LLC acquired a new stake in shares of Redwire during the first quarter worth $28,000. KBC Group NV purchased a new position in Redwire during the 1st quarter worth $29,000. Rockefeller Capital Management L.P. raised its position in Redwire by 1,054.0% during the 4th quarter. Rockefeller Capital Management L.P. now owns 4,016 shares of the company’s stock worth $31,000 after buying an additional 3,668 shares during the last quarter. Signaturefd LLC lifted its stake in shares of Redwire by 211.8% in the 3rd quarter. Signaturefd LLC now owns 3,077 shares of the company’s stock worth $32,000 after acquiring an additional 2,090 shares during the period. Finally, GAMMA Investing LLC lifted its stake in shares of Redwire by 70.4% in the 3rd quarter. GAMMA Investing LLC now owns 3,213 shares of the company’s stock worth $34,000 after acquiring an additional 1,327 shares during the period. Hedge funds and other institutional investors own 8.10% of the company’s stock.

Redwire Company Profile

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.