Redwire (NYSE:RDW) Trading Down 15.6% – Should You Sell?

Redwire Corporation (NYSE:RDW) fell 15.6% during mid-day trading on Monday . The stock traded as low as $20.30 and last traded at $20.74. 56,039,950 shares changed hands during trading, an increase of 86% from the average session volume of 30,201,844 shares. The stock had previously closed at $24.57.

Analyst Ratings Changes

Several research firms have issued reports on RDW. Weiss Ratings restated a “sell (d-)” rating on shares of Redwire in a research report on Tuesday, April 21st. Truist Financial upgraded shares of Redwire to a “strong-buy” rating in a research report on Friday, May 1st. Alliance Global Partners reaffirmed a “buy” rating on shares of Redwire in a research note on Wednesday, April 22nd. Zacks Research raised shares of Redwire from a “strong sell” rating to a “hold” rating in a research note on Wednesday, March 11th. Finally, Jefferies Financial Group downgraded shares of Redwire from a “buy” rating to a “hold” rating and upped their price objective for the company from $13.00 to $24.00 in a research note on Monday. 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. Based on data from MarketBeat.com, Redwire has an average rating of “Moderate Buy” and a consensus target price of $15.44.

Redwire Trading Down 15.6%

The stock has a market capitalization of $3.98 billion, a P/E ratio of -7.74 and a beta of 2.91. The firm’s 50 day moving average price is $11.73 and its 200 day moving average price is $9.65. 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 quarterly 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 return on equity of 11.68% and a negative net margin of 80.90%.The company had revenue of $96.97 million during the quarter, compared to the consensus estimate of $105.94 million. During the same period in the previous year, the company earned ($0.09) earnings per share. Redwire’s quarterly revenue was up 57.9% on a year-over-year basis. As a group, equities research analysts expect that Redwire Corporation will post -0.7 earnings per share for the current fiscal year.

Insider Transactions at Redwire

In related news, Director Ae Red Holdings, Llc sold 7,500,000 shares of the stock in a transaction dated 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 completion of the transaction, the director directly owned 36,135,217 shares of the company’s stock, valued at $330,637,235.55. This represents a 17.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders have sold 23,327,795 shares of company stock valued at $228,806,188 over the last ninety days. 0.79% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Redwire

A number of institutional investors have recently bought and sold shares of RDW. Bank of America Corp DE raised its stake in Redwire by 7,512.5% in the first quarter. Bank of America Corp DE now owns 6,820,003 shares of the company’s stock worth $57,970,000 after buying an additional 6,730,414 shares in the last quarter. AE Industrial Partners LP increased its stake in shares of Redwire by 7.1% during the third quarter. AE Industrial Partners LP now owns 91,598,704 shares of the company’s stock valued at $823,472,000 after purchasing an additional 6,101,959 shares in the last quarter. State Street Corp increased its stake in shares of Redwire by 61.1% during the fourth 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 in the last quarter. UBS Group AG increased its stake in shares of Redwire by 140.8% during the fourth quarter. UBS Group AG now owns 2,039,902 shares of the company’s stock valued at $15,503,000 after purchasing an additional 1,192,885 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Redwire during the fourth quarter valued at approximately $7,676,000. 8.10% of the stock is owned by 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.