Redwire (NYSE:RDW) Shares Down 11.8% Following Insider Selling

Redwire Corporation (NYSE:RDW) shares traded down 11.8% during trading on Friday after an insider sold shares in the company. The company traded as low as $14.72 and last traded at $15.0780. 63,480,700 shares were traded during trading, an increase of 98% from the average session volume of 32,033,848 shares. The stock had previously closed at $17.09.

Specifically, Director Ae Red Holdings, Llc sold 1,070,565 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $21.48, for a total transaction of $22,995,736.20. Following the sale, the director directly owned 1,077,419 shares in the company, valued at approximately $23,142,960.12. This represents a 49.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Canaccord Genuity Group increased their price target on Redwire from $12.00 to $14.00 and gave the stock a “buy” rating in a research report on Monday, May 11th. Alliance Global Partners reaffirmed a “buy” rating on shares of Redwire in a research note on Wednesday, April 22nd. Truist Financial raised Redwire to a “strong-buy” rating in a research note on Friday, May 1st. Zacks Research upgraded Redwire from a “strong sell” rating to a “hold” rating in a research report on Wednesday, March 11th. Finally, Jefferies Financial Group upgraded Redwire to a “hold” rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $15.44.

More Redwire News

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Investor interest in space-related names is rising ahead of a potential SpaceX IPO, which is putting Redwire back in the spotlight as a “picks and shovels” supplier to the space industry. Is Redwire a Millionaire-Maker Stock?
• Positive Sentiment: Some bullish investors argue Redwire could benefit from growing demand for mission-critical spacecraft components and broader optimism around commercial space infrastructure. Is Redwire Corporation (RDW) A Good Stock To Buy Now?
• Neutral Sentiment: Jefferies upgraded Redwire to hold, which suggests the business has improved enough to warrant a less bearish stance, but not enough for a stronger buy rating. Zacks.com
• Neutral Sentiment: Commentary on Redwire’s investment story says expectations are increasingly catching up with reality, implying the stock may need more concrete execution to justify further gains. How The Investment Story Is Shifting For Redwire (RDW) As Expectations Catch Up To Reality
• Negative Sentiment: Redwire’s expanded at-the-market equity program and a separate report on a potential US$500 million ATM are raising dilution concerns, which can pressure the stock by signaling more share issuance ahead. Redwire Establishes Expanded At-The-Market Equity Program
• Negative Sentiment: Bearish articles are warning that investors may be overpaying for growth, with one piece explicitly saying it would pass on RDW at current levels. As SpaceX Prepares Its IPO, Redwire Stock Is in the Spotlight. Why I would Pass on RDW Here.
• Negative Sentiment: Coverage highlighting why RDW is down today points to the company’s $500 million equity-raising plan, reinforcing dilution fears as the main short-term overhang. The $500 Million Reason Redwire Stock Is Down Today

Redwire Price Performance

The stock has a fifty day moving average price of $13.46 and a 200-day moving average price of $10.47. The company has a market cap of $2.89 billion, a PE ratio of -5.63 and a beta of 2.92. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.75 and a quick ratio of 1.37.

Redwire (NYSE:RDW) last released its earnings results on Wednesday, May 6th. The company reported ($0.40) earnings per share (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 net margin of 80.90% and a negative return on equity of 11.68%. Redwire’s revenue for the quarter was up 57.9% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.09) EPS. On average, equities analysts expect that Redwire Corporation will post -0.76 earnings per share for the current year.

Institutional Trading of Redwire

Hedge funds and other institutional investors have recently modified their holdings of the company. Parallel Advisors LLC purchased a new stake in shares of Redwire during the first quarter worth $28,000. KBC Group NV acquired a new position in Redwire during the first quarter worth $29,000. Sunbelt Securities Inc. grew its position in shares of Redwire by 601.1% in the fourth quarter. Sunbelt Securities Inc. now owns 3,961 shares of the company’s stock valued at $30,000 after purchasing an additional 3,396 shares during the last quarter. CWM LLC grew its position in shares of Redwire by 1,725.0% in the fourth quarter. CWM LLC now owns 4,088 shares of the company’s stock valued at $31,000 after purchasing an additional 3,864 shares during the last quarter. Finally, Rockefeller Capital Management L.P. grew its position in shares of Redwire by 1,054.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 4,016 shares of the company’s stock valued at $31,000 after purchasing an additional 3,668 shares during the last quarter. 8.10% of the stock is currently owned by hedge funds and other institutional investors.

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.