Redwire (NYSE:RDW) Trading Down 11% Following Insider Selling

Redwire Corporation (NYSE:RDW) dropped 11% on Wednesday following insider selling activity. The stock traded as low as $9.57 and last traded at $10.02. Approximately 28,971,130 shares changed hands during trading, a decline of 17% from the average daily volume of 34,791,758 shares. The stock had previously closed at $11.26.

Specifically, Director Ae Red Holdings, Llc sold 1,312,126 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $11.12, for a total transaction of $14,590,841.12. Following the completion of the sale, the director owned 49,898,395 shares of the company’s stock, valued at approximately $554,870,152.40. This represents a 2.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ae Red Holdings, Llc sold 1,550,179 shares of the firm’s stock in a transaction that occurred on Friday, January 30th. The stock was sold at an average price of $12.65, for a total transaction of $19,609,764.35. Following the completion of the transaction, the director directly owned 51,210,521 shares in the company, valued at $647,813,090.65. This trade represents a 2.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In other news, Director Ae Red Holdings, Llc sold 3,932,686 shares of the company’s stock in a transaction that occurred on Thursday, January 29th. The stock was 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 directly owned 52,760,700 shares in the company, valued at $675,336,960. This represents a 6.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Analysts Set New Price Targets

A number of research firms have weighed in on RDW. KeyCorp initiated coverage on Redwire in a research note on Thursday, December 18th. They set a “sector weight” rating on the stock. Alliance Global Partners reiterated a “buy” rating on shares of Redwire in a report on Thursday, November 6th. Industrial Alliance Securities set a $9.00 price objective on shares of Redwire in a report on Thursday, November 6th. HC Wainwright reaffirmed a “buy” rating and set a $22.00 target price on shares of Redwire in a research note on Tuesday, December 23rd. Finally, Bank of America reduced their target price on shares of Redwire from $9.00 to $6.00 and set an “underperform” rating on the stock in a research note on Wednesday, November 19th. Six investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $13.75.

Key Headlines Impacting Redwire

Here are the key news stories impacting Redwire this week:

• Positive Sentiment: Potential SHIELD contract opportunity could be a longer‑term revenue catalyst if Redwire wins and executes the work; the story notes the contract upside even as it flags risks. Read More.
• Neutral Sentiment: Analyst and market commentary is urging a reassessment after recent volatility — this could amplify trading swings as investors digest contract news vs. fundamentals. Read More.
• Negative Sentiment: Multiple large insider/affiliate share sales (early Feb and several late‑Jan tranches) — including multi‑million‑share blocks and trades worth tens of millions — are weighing on sentiment and signaling supply pressure. SEC filing and coverage show continued selling by Ae Red Holdings. Read More.
• Negative Sentiment: Market writeups link the recent large shareholder/PE share sale to a sharp intraday drop (reported ~24.5% in one piece); that combination of transaction‑driven selling plus contract uncertainty is cited as the main immediate driver of the share price weakness. Read More.
• Negative Sentiment: Earlier disclosures and coverage (InsiderTrades/MarketBeat) detail a sustained pattern of insider selling through January and February, increasing investor concern about near‑term supply and signaling that a large holder is reducing exposure. Read More.

Redwire Trading Down 12.4%

The company has a market cap of $1.45 billion, a PE ratio of -2.77 and a beta of 2.45. The company’s 50 day simple moving average is $9.02 and its two-hundred day simple moving average is $9.08. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.41 and a quick ratio of 1.05.

Redwire (NYSE:RDW) last issued its quarterly earnings data on Wednesday, November 5th. The company reported ($0.29) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.15). Redwire had a negative return on equity of 16.24% and a negative net margin of 70.32%.The company had revenue of $103.43 million during the quarter, compared to analyst estimates 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 Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RDW. Farther Finance Advisors LLC grew its stake in shares of Redwire by 4.4% in the fourth quarter. Farther Finance Advisors LLC now owns 20,897 shares of the company’s stock valued at $159,000 after buying an additional 877 shares in the last quarter. Tower Research Capital LLC TRC grew its position in Redwire by 32.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,279 shares of the company’s stock valued at $102,000 after acquiring an additional 1,533 shares in the last quarter. Vontobel Holding Ltd. increased its stake in Redwire by 10.4% during the second quarter. Vontobel Holding Ltd. now owns 18,507 shares of the company’s stock worth $302,000 after purchasing an additional 1,751 shares during the period. Jones Financial Companies Lllp boosted its stake in shares of Redwire by 24.0% in the third quarter. Jones Financial Companies Lllp now owns 12,617 shares of the company’s stock valued at $111,000 after purchasing an additional 2,442 shares during the period. Finally, Huntleigh Advisors Inc. boosted its stake in shares of Redwire by 4.2% in the third quarter. Huntleigh Advisors Inc. now owns 61,837 shares of the company’s stock valued at $556,000 after purchasing an additional 2,488 shares during the period. 8.10% of the stock is currently owned by institutional investors and hedge funds.

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.