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Redwire (RDW) Stock Trades Up, Here Is Why

RDW Cover Image

What Happened?

Shares of aerospace and defense company Redwire (NYSE: RDW) jumped 4.2% in the afternoon session after the stock continued to gain momentum from positive news announced during the previous trading session. 

This move followed an 11.9% rally after several key developments boosted investor confidence. Axiom Space awarded Redwire a contract to build solar array wings for its first commercial space station module. Additionally, the company launched a new facility in Albuquerque focused on space-based defense systems, signaling its commitment to growth in that sector. Further positive news came from Redwire's unit, Edge Autonomy, which supplied advanced aircraft to European NATO countries and the Ukrainian Armed Forces. The ongoing positive sentiment was also supported by a consensus "Buy" rating from multiple analysts.

After the initial pop the shares cooled down to $10.52, up 1.5% from previous close.

Is now the time to buy Redwire? Access our full analysis report here.

What Is The Market Telling Us

Redwire’s shares are extremely volatile and have had 96 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 10 days ago when the stock gained 9.6% on the news that its subsidiary, Edge Autonomy, announced it delivered additional Penguin uncrewed aerial systems (UAS) to the Ukraine Armed Forces. The company has been supplying these drones directly to Ukrainian forces since the full-scale invasion began in 2022. These Penguin UAS are used for key tasks like reconnaissance, surveillance, and finding targets. This ongoing delivery highlights a strong, direct relationship with Ukraine's military. Edge Autonomy even has an office in Ukraine, letting its team work directly with soldiers in the field to adapt the technology to real-time mission needs. Investors viewed the news of a repeat order as a positive sign, suggesting continued demand for Redwire's defense technology and its proven effectiveness in active combat situations.

Redwire is down 38.3% since the beginning of the year, and at $10.52 per share, it is trading 59% below its 52-week high of $25.66 from February 2025. Investors who bought $1,000 worth of Redwire’s shares at the IPO in January 2021 would now be looking at an investment worth $1,011.

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