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RDW - Redwire: Risk Grows Exponentially After Stock Price Doubled
Redwire Corporation
2024-07-04 09:50:25 ET
Summary
Redwire Corporation's top line surged in Q1 2023, but this did not translate to bottom line growth due to margin pressure and increased costs.
Despite strong revenue growth and improved cash flow, Redwire's significant debt load maturing in 2026 poses a risk of shareholder dilution.
I recommend a hold rating for Redwire stock due to the potential risk of dilution from convertible preferred stock and uncertainty surrounding the company's 2026 debt maturity.