What Happened?

Shares of aerospace and defense company Redwire (NYSE: RDW) jumped 3.2% in the morning session after the company announced it was awarded a $25 million contract by NASA. 

The five-year contract is to provide biotechnology facilities and support on-orbit operations aboard the International Space Station (ISS). This agreement positions Redwire to fulfill future task orders for mission integration and related services for the space agency. Under the new contract, Redwire has already received an initial $2.5 million task order from NASA's In Space Production Applications (InSPA) program. This first task will support drug development research using the company's proprietary PIL-BOX technology, highlighting the immediate application of the partnership.

After the initial pop the shares cooled down to $9.23, up 2.8% from previous close.

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What Is The Market Telling Us

Redwire’s shares are extremely volatile and have had 98 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 9 days ago when the stock dropped 4.1% on the news that investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.

Redwire is down 45.8% since the beginning of the year, and at $9.23 per share, it is trading 64% 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 $886.65.

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