Redwire (NYSE:RDW) Trading Down 8.4% Following Insider Selling

Redwire Corporation (NYSE:RDW) fell 8.4% on Friday after an insider sold shares in the company. The stock traded as low as $11.41 and last traded at $11.73. 42,481,938 shares changed hands during trading, an increase of 19% from the average session volume of 35,603,438 shares. The stock had previously closed at $12.81.

Specifically, Director Ae Red Holdings, Llc sold 3,932,686 shares of the firm’s stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $12.80, for a total value of $50,338,380.80. Following the completion of the sale, the director owned 52,760,700 shares in the company, valued at approximately $675,336,960. This trade represents a 6.94% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Ae Red Holdings, Llc sold 4,847,867 shares of the company’s stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $13.29, for a total transaction of $64,428,152.43. Following the transaction, the director owned 56,693,386 shares in the company, valued at $753,455,099.94. The trade was a 7.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Wall Street Analyst Weigh In

RDW has been the topic of a number of recent analyst reports. Zacks Research raised shares of Redwire from a “strong sell” rating to a “hold” rating in a research report on Monday, November 10th. Alliance Global Partners reiterated a “buy” rating on shares of Redwire in a report on Thursday, November 6th. KeyCorp started coverage on Redwire in a research note on Thursday, December 18th. They set a “sector weight” rating for the company. Canaccord Genuity Group cut their price objective on Redwire from $17.50 to $11.00 and set a “buy” rating on the stock in a research report on Wednesday, November 12th. Finally, HC Wainwright reiterated a “buy” rating and issued a $22.00 target price on shares of Redwire in a research note on Tuesday, December 23rd. Six analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $13.75.

Redwire Stock Performance

The firm has a 50 day moving average of $8.63 and a 200-day moving average of $9.25. The company has a market cap of $1.94 billion, a P/E ratio of -3.70 and a beta of 2.44. The company has a quick ratio of 1.05, a current ratio of 1.41 and a debt-to-equity ratio of 0.20.

Redwire (NYSE:RDW) last issued its earnings results on Wednesday, November 5th. The company reported ($0.29) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.14) by ($0.15). Redwire had a negative net margin of 70.32% and a negative return on equity of 16.24%. The firm had revenue of $103.43 million for the quarter, compared to the consensus estimate of $132.05 million. As a group, sell-side analysts anticipate that Redwire Corporation will post -0.85 EPS for the current fiscal year.

Institutional Trading of Redwire

Hedge funds have recently added to or reduced their stakes in the business. AE Industrial Partners LP increased its position in Redwire by 7.1% during the 3rd 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 during the period. Vanguard Group Inc. increased its holdings in Redwire by 2.9% during the third quarter. Vanguard Group Inc. now owns 3,242,848 shares of the company’s stock valued at $29,153,000 after buying an additional 91,045 shares during the period. Voya Investment Management LLC purchased a new position in Redwire during the third quarter valued at approximately $20,372,000. Hood River Capital Management LLC bought a new position in Redwire in the second quarter worth approximately $36,206,000. Finally, UBS Group AG lifted its holdings in Redwire by 140.8% during 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.