Redwire (NYSE:RDW) Shares Down 5.4% – Should You Sell?

Redwire Corporation (NYSE:RDW) fell 5.4% during mid-day trading on Thursday . The company traded as low as $10.11 and last traded at $10.7670. Approximately 27,075,579 shares were traded during mid-day trading, a decline of 16% from the average session volume of 32,233,645 shares. The stock had previously closed at $11.38.

Analyst Upgrades and Downgrades

Several research firms have issued reports on RDW. Jefferies Financial Group upgraded Redwire to a “hold” rating in a research note on Wednesday, June 10th. Wall Street Zen upgraded shares of Redwire from a “sell” rating to a “hold” rating in a research note on Saturday, June 20th. Alliance Global Partners restated a “buy” rating on shares of Redwire in a research note on Wednesday, April 22nd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Redwire in a research note on Tuesday, April 21st. Finally, Canaccord Genuity Group raised their target price on Redwire from $12.00 to $14.00 and gave the stock a “buy” rating in a research note on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $15.44.

Redwire Price Performance

The firm has a market capitalization of $2.57 billion, a PE ratio of -4.02 and a beta of 2.92. The firm’s fifty day moving average price is $14.19 and its 200 day moving average price is $10.98. The company has a current ratio of 1.75, a quick ratio of 1.37 and a debt-to-equity ratio of 0.08.

Redwire (NYSE:RDW) last posted 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). Redwire had a negative net margin of 80.90% and a negative return on equity of 11.68%. The business had revenue of $96.97 million for the quarter, compared to analyst estimates of $105.94 million. During the same quarter in the prior year, the firm earned ($0.09) earnings per share. The company’s revenue for the quarter was up 57.9% on a year-over-year basis. As a group, equities analysts forecast that Redwire Corporation will post -0.76 earnings per share for the current year.

Insider Activity at Redwire

In related news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the firm’s stock in a transaction dated 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 of the company’s stock, valued at $23,142,960.12. This trade represents a 49.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders sold a total of 13,211,433 shares of company stock valued at $147,576,208 in the last quarter. 0.79% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Redwire

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Parallel Advisors LLC acquired a new position in shares of Redwire in the 1st quarter valued at $28,000. KBC Group NV acquired a new stake in Redwire during the first quarter valued at $29,000. Sunbelt Securities Inc. increased its holdings in 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 buying an additional 3,396 shares in the last quarter. Rockefeller Capital Management L.P. raised 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 worth $31,000 after acquiring an additional 3,668 shares during the period. Finally, CWM LLC raised 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 worth $31,000 after acquiring an additional 3,864 shares during the period. Institutional investors and hedge funds own 8.10% of the company’s stock.

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.