Redwire Corporation (NYSE:RDW) shares are trading higher Tuesday after the company announced it secured a contract under the Missile Defense Agency's Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) indefinite-delivery/indefinite-quantity (IDIQ) program.
Redwire Secures Missile Defense Agency Contract
Redwire said the SHIELD IDIQ contract carries a ceiling value of $151 billion and supports a broad range of work areas designed to enable the rapid delivery of innovative capabilities to the warfighter with increased speed and agility.
According to the company, the contract covers technologies including unmanned aerial systems, advanced sensors, maneuverable spacecraft platforms and agent-based modeling and simulation. Redwire said these capabilities position it to deliver resilient, multi-domain solutions in support of national security missions.
"This contract underscores the strength of Redwire's space and defense technologies and our ability to support mission partners across the Department of War," said chairman and CEO Peter Cannito.
Redwire noted the SHIELD contract is a multi-award IDIQ, and there is no guaranteed revenue associated with the award.
RDW Surges Above Key Levels
Redwire is trading 28.9% above its 20-day simple moving average (SMA) and 59.8% above its 100-day SMA, demonstrating a strong short-term and longer-term bullish trend. Despite the recent success, shares have decreased by 49.75% over the past 12 months. The stock is currently positioned closer to its 52-week highs than lows, suggesting potential recovery.
The RSI is at 56.52, indicating neutral territory, while the MACD is above its signal line, suggesting bullish momentum. This combination of a neutral RSI and bullish MACD signals indicates strong momentum leaning bullish.
RDW Price Action: At the time of writing, Redwire shares are trading 27.92% higher at $14.04, according to data from Benzinga Pro.
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