Redwire (NYSE:RDW) Shares Gap Down – Should You Sell?

Redwire Corporation (NYSE:RDW) shares gapped down before the market opened on Wednesday . The stock had previously closed at $20.58, but opened at $19.50. Redwire shares last traded at $19.11, with a volume of 12,585,750 shares traded.

Analyst Ratings Changes

Several equities analysts have recently issued reports on RDW shares. Jefferies Financial Group downgraded shares of Redwire from a “buy” rating to a “hold” rating and boosted their price target for the company from $13.00 to $24.00 in a report on Monday. Alliance Global Partners restated a “buy” rating on shares of Redwire in a research report on Wednesday, April 22nd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Redwire in a report on Tuesday, April 21st. Canaccord Genuity Group increased their price objective on Redwire from $12.00 to $14.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Finally, Truist Financial raised Redwire to a “strong-buy” rating in a research note on Friday, May 1st. One investment 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 company. According to MarketBeat.com, Redwire presently has an average rating of “Moderate Buy” and a consensus target price of $15.44.

Redwire Stock Down 9.8%

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 has a market capitalization of $3.56 billion, a P/E ratio of -6.93 and a beta of 2.92. The firm’s fifty day moving average price is $11.95 and its 200-day moving average price is $9.75.

Redwire (NYSE:RDW) last posted its quarterly earnings data on Wednesday, May 6th. The company reported ($0.40) EPS for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.24). The firm had revenue of $96.97 million during the quarter, compared to the consensus estimate of $105.94 million. Redwire had a negative return on equity of 11.68% and a negative net margin of 80.90%.The firm’s quarterly revenue was up 57.9% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.09) EPS. As a group, equities research analysts forecast that Redwire Corporation will post -0.7 earnings per share for the current year.

Insider Activity at Redwire

In other news, Director Ae Red Holdings, Llc sold 977,887 shares of the business’s stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $10.57, for a total transaction of $10,336,265.59. Following the sale, the director directly owned 21,494,349 shares of the company’s stock, valued at $227,195,268.93. The trade was a 4.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last three months, insiders sold 23,327,795 shares of company stock worth $228,806,188. 0.79% of the stock is currently owned by corporate insiders.

Institutional Trading of Redwire

A number of hedge funds have recently bought and sold shares of the company. AE Industrial Partners LP increased its position in shares of Redwire by 7.1% in the third quarter. AE Industrial Partners LP now owns 91,598,704 shares of the company’s stock worth $823,472,000 after acquiring an additional 6,101,959 shares in the last quarter. Bank of America Corp DE grew its position 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. State Street Corp raised its stake in Redwire by 61.1% during the 4th quarter. State Street Corp now owns 4,708,600 shares of the company’s stock valued at $35,785,000 after purchasing an additional 1,786,038 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Redwire by 2.9% in the third quarter. Vanguard Group Inc. now owns 3,242,848 shares of the company’s stock valued at $29,153,000 after purchasing an additional 91,045 shares in the last quarter. Finally, UBS Group AG boosted its position in shares of Redwire by 140.8% in the fourth quarter. UBS Group AG now owns 2,039,902 shares of the company’s stock worth $15,503,000 after buying an additional 1,192,885 shares during the period. 8.10% of the stock is owned by hedge funds and other institutional investors.

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.