Redwire (NYSE:RDW) Trading 6.7% Higher – Should You Buy?

On January 5th, 2025, shares of Redwire Co. (NYSE:RDW) experienced a notable increase, trading up by 6.7%. During the trading session, the stock peaked at $18.25 before closing at $18.19, representing a significant rise from its previous close of $17.04. A total of 141,255 shares were traded, which is a marked decline of 77% compared to the average trading volume of 621,207 shares.

Analyst Ratings Overview

Recent activity among research analysts has generated mixed reviews for Redwire's stock. Notably, B. Riley downgraded their position on Redwire, changing it from a "buy" to a "neutral" rating while also lifting their price target from $8.00 to $9.50 in a note dated October 29th. On the other hand, HC Wainwright confirmed their "buy" rating and assigned a price target of $18.00 on December 11th. Additionally, Roth MKM increased their target from $10.00 to $13.00 and maintained a "buy" rating. Contrastingly, Cantor Fitzgerald reiterated an "overweight" rating with a price target of $6.00 as of September 30th. Currently, one analyst holds a "hold" rating, while five analysts recommend a "buy". According to MarketBeat data, the average rating for Redwire stands at a "Moderate Buy" with an average price target of $10.13.

Current Trading Metrics

The 50-day simple moving average for Redwire is $12.35, while the 200-day simple moving average is $8.76. The company's market capitalization is approximately $1.20 billion, with a price-to-earnings ratio of -14.95 and a beta of 2.25, indicating higher volatility compared to the broader market.

Insider Transactions

Recent transactions indicate some insider activity at Redwire. On December 30th, a major shareholder, Park Lp Genesis II, sold 5,371 shares of the company at an average price of $18.01, totaling around $96,731.71. Following this transaction, they retain 4,598,056 shares, worth roughly $82,810,988. This sale marks a minor reduction of 0.12% in their shareholding. Insider ownership stands at about 2.60% of the total shares.

Hedge Fund Movements

Several hedge funds have recently adjusted their stakes in Redwire. SG Americas Securities LLC has increased its position by 39.6% in the third quarter, now owning 21,870 shares valued at $150,000 after acquiring an additional 6,200 shares. Similarly, MetLife Investment Management LLC boosted their holdings by 129.1%, owning 14,058 shares worth $97,000 after adding 7,921 shares. The Manufacturers Life Insurance Company and Penserra Capital Management LLC also acquired new positions or increased their stakes respectively. Hedge funds collectively own about 8.10% of Redwire's stock.

About Redwire Corporation

Redwire Corporation specializes in providing critical space solutions and infrastructure aimed at government and commercial clients both in the U.S. and globally. Their product offerings include avionics and sensors essential for spacecraft navigation, camera systems, solar array solutions tailored to varying spacecraft specifications, and deployable structures designed for sensor positioning and solar array deployment.

Conclusion

The recent rise in Redwire's stock opens discussions about its investment potential amidst shifting analyst ratings and market activity.

Redwire, Stocks, Trading