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.
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Redwire: Risk Grows Exponentially After Stock Price Doubled