Shares of Redwire Corporation (NASDAQ:RDW) are pulling back Wednesday, but the stock remains up nearly 75% over the past month. Here’s what you need to know.
$151 Billion Missile Defense Agency Contract
Redwire has been on a hot streak of deal-making. On Tuesday, the defense company announced that the Department of War awarded it a missile defense contract with a ceiling of $151 billion. Even though no revenue is guaranteed from the contract, because it’s a multi-award deal, the significant sum garnered a lot of positive energy for the stock.
Trending Upwards After Geopolitical Tensions
The stock has been especially sensitive to comments from political leaders and developments in geopolitics. For example, the stock jumped last Friday after comments from United States President Donald Trump about progress made on the Golden Dome initiative, which is an effort to build a massive air defense system for the nation.
Renewed Focus On Defense, Space
Earlier this month, Redwire announced the sunsetting of the Edge Autonomy brand and full assumption of uncrewed aerial systems (UAS) and associated defense technology offerings into Redwire branding. The unification of both space and defense technology capabilities under a single Redwire brand is being rolled out concurrently with an updated business structure to provide greater visibility into the company’s unique positioning in these two strategic offerings.
The space segment is led by Mike Gold, and focuses on spacecraft, large space infrastructure and microgravity capabilities to serve civil, national security and commercial space customers.
The defense segment is led by Steve Adlich, and focuses on delivering combat proven autonomous systems, optical sensors and radio frequency payloads.
RDW Stock Retreats After Massive Swing Higher
RDW Price Action: Redwire shares are trading down 6.76% at $13.24 at the time of publication on Wednesday. The stock has seen a high of $13.90 and dipped to a low of $12.97 during Wednesday’s session. Redwire stock is currently sitting 50.5% below its 52-week high and is showing strong momentum.
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