Redwire (NYSE:RDW) Stock Price Down 4.8% – Here’s Why

Shares of Redwire Corporation (NYSE:RDW) traded down 4.8% during mid-day trading on Wednesday . The stock traded as low as $8.90 and last traded at $8.9650. 11,156,309 shares were traded during mid-day trading, a decline of 63% from the average daily volume of 30,530,512 shares. The stock had previously closed at $9.42.

Key Redwire News

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire opened a new state-of-the-art facility in Indiana to expand space-enabled research and manufacturing, a move that could support future revenue growth and broader commercialization opportunities. Redwire Opens State-of-the-Art Facility in Indiana to Accelerate Space-Enabled R&D and Manufacturing with a Focus on Next-Gen Drug Development and Human Health Breakthroughs
• Positive Sentiment: The company’s manufacturing capacity expansion in Alabama and new research hub announcements suggest Redwire is investing to meet higher demand and improve its long-term growth profile. How to play RDW stock as Redwire boosts manufacturing capacity
• Positive Sentiment: Several bullish analyst and commentary pieces argue RDW could be undervalued, citing a record backlog, strong book-to-bill ratio, and major defense orders that could translate into future growth. Redwire (RDW) Could Be 26% Undervalued As Factory Growth And Defense Orders Build
• Neutral Sentiment: Analysts remain split, with some saying Redwire is still a “Hold” and that investors are waiting for proof of improved execution in upcoming earnings. Redwire: The Bull Case Is Priced In Unless Execution Clears A Higher Bar
• Negative Sentiment: Despite revenue growth and a strong backlog, Redwire still faces concerns about cash burn, share dilution, and the need to deliver better margins and revenue in the next earnings report. Redwire: The Bull Case Is Priced In Unless Execution Clears A Higher Bar

Analysts Set New Price Targets

RDW has been the subject of several research reports. Jefferies Financial Group raised Redwire to a “hold” rating in a report on Wednesday, June 10th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Redwire in a research report on Friday. Alliance Global Partners reiterated 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 report on Friday, May 1st. Finally, Canaccord Genuity Group boosted their price target on Redwire from $12.00 to $14.00 and gave the company 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 issued a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $15.44.

Redwire Stock Down 4.8%

The stock has a 50-day moving average of $14.29 and a 200-day moving average of $11.38. 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 cap of $2.14 billion, a price-to-earnings ratio of -3.35 and a beta of 3.01.

Redwire (NYSE:RDW) last announced its quarterly earnings data on Wednesday, May 6th. The company reported ($0.40) earnings per share for the quarter, missing the consensus estimate of ($0.16) by ($0.24). The company had revenue of $96.97 million during the quarter, compared to analyst estimates 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 was up 57.9% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.09) earnings per share. Sell-side analysts predict that Redwire Corporation will post -0.74 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Ae Red Holdings, Llc sold 1,070,565 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $21.48, for a total transaction of $22,995,736.20. Following the completion of the sale, the director owned 1,077,419 shares of the company’s stock, valued at $23,142,960.12. This represents a 49.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.79% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Redwire

Several hedge funds have recently bought and sold shares of the company. AQR Capital Management LLC lifted its holdings in shares of Redwire by 125.0% during the 1st quarter. AQR Capital Management LLC now owns 51,437 shares of the company’s stock worth $426,000 after acquiring an additional 28,576 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Redwire by 352.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 355,265 shares of the company’s stock valued at $2,945,000 after purchasing an additional 276,814 shares in the last quarter. Strs Ohio acquired a new stake in shares of Redwire in the 1st quarter valued at $69,000. Rhumbline Advisers increased its stake in shares of Redwire by 61.0% in the 2nd quarter. Rhumbline Advisers now owns 56,517 shares of the company’s stock valued at $921,000 after purchasing an additional 21,417 shares during the last quarter. Finally, Invesco Ltd. increased its stake in shares of Redwire by 57.6% in the 2nd quarter. Invesco Ltd. now owns 21,198 shares of the company’s stock valued at $346,000 after purchasing an additional 7,750 shares during the last quarter. 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.