Redwire (NYSE:RDW) Downgraded by Wall Street Zen to Sell

Wall Street Zen lowered shares of Redwire (NYSE:RDW) from a hold rating to a sell rating in a research report sent to investors on Saturday morning,Wall Street Zen reports.

RDW has been the topic of several other reports. Jefferies Financial Group set a $15.00 target price on shares of Redwire in a research report on Sunday, August 9th. B. Riley Financial reduced their price target on Redwire from $15.00 to $14.00 and set a “buy” rating for the company in a research report on Friday. Bank of America boosted their price target on Redwire from $7.00 to $8.00 and gave the stock an “underperform” rating in a research report on Monday, August 31st. Weiss Ratings reiterated a “sell (d-)” rating on shares of Redwire in a research note on Thursday, October 15th. Finally, Alliance Global Partners reissued a “buy” rating on shares of Redwire in a report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $14.28.

Redwire Stock Performance

Shares of RDW opened at $7.21 on Friday. The company’s fifty day moving average is $9.80 and its 200-day moving average is $11.01. Redwire has a 12 month low of $4.87 and a 12 month high of $26.64. The firm has a market cap of $1.80 billion, a price-to-earnings ratio of -5.72 and a beta of 3.15. The company has a quick ratio of 3.48, a current ratio of 3.92 and a debt-to-equity ratio of 0.03.

Redwire (NYSE:RDW) last released its quarterly earnings results on Wednesday, November 4th. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.04. Redwire had a negative net margin of 52.36% and a negative return on equity of 9.84%. The business had revenue of $109.03 million for the quarter, compared to the consensus estimate of $126.75 million. Equities analysts expect that Redwire will post -0.70 EPS for the current fiscal year.

Insider Buying and Selling at Redwire

In other news, Director Ae Red Holdings, Llc sold 929,435 shares of the business’s stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $11.34, for a total value of $10,539,792.90. Following the completion of the sale, the director directly owned 147,984 shares in the company, valued at approximately $1,678,138.56. The trade was a 86.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of RDW. BlackRock Inc. acquired a new position in Redwire during the 2nd quarter worth $196,514,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Redwire in the third quarter valued at about $126,591,000. Van ECK Associates Corp grew its position in shares of Redwire by 173.0% in the second quarter. Van ECK Associates Corp now owns 6,851,228 shares of the company’s stock valued at $83,791,000 after purchasing an additional 4,341,424 shares during the last quarter. Bank of America Corp DE increased its stake in shares of 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 purchasing an additional 6,730,414 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Redwire in the second quarter worth about $16,583,000. Institutional investors own 8.10% of the company’s stock.

Key Redwire News

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Redwire reported record backlog of $619.7 million, up nearly 75% year over year, and a book-to-bill ratio of 1.73. Gross margins also reached a record, supporting the view that demand remains solid. Redwire Q3 results
• Positive Sentiment: The company won a $20 million contract for additional Otter very-low-Earth-orbit testing and experimentation, adding to its program work. Otter contract announcement
• Neutral Sentiment: Analyst actions were mixed: B. Riley lowered its price target to $14 but kept a Buy rating, while Piper Sandler cut its target to $8 and maintained Neutral. B. Riley rating Piper Sandler rating
• Negative Sentiment: Quarterly revenue of about $109 million fell short of analysts’ roughly $127 million estimate. Although the adjusted loss per share was narrower than expected, management cited shipment delays that are affecting revenue timing and the outlook. Q3 earnings-call highlights

About Redwire

Redwire Corporation (NYSE: RDW) is a space infrastructure and defense technology company that develops products and services for government and commercial customers. Its capabilities support spacecraft, space stations, national security missions, and other applications across the space economy.

The company’s offerings include deployable solar arrays, spacecraft platforms, avionics, sensors, communications systems, digital engineering and mission-support services. Redwire also develops robotic systems, in-space manufacturing technologies, payloads, and other solutions designed to enable spacecraft operations and the production of materials in orbit.

Redwire was formed in 2020 through the combination of several space technology businesses backed by AE Industrial Partners and became a publicly traded company in 2021.