Redwire Stock Pullback Amid Profit-Taking After Major Contract Win
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Benzinga
- Contract Win Incentive: Redwire secured a spot on the Missile Defense Agency's $151 billion SHIELD contract, which, despite a 5.94% stock drop due to profit-taking, positions the company for potential long-term revenue growth.
- Stock Price Volatility: The stock fell as traders likely locked in profits, and uncertainty remains regarding the specific scope and financial impact of Redwire's SHIELD-related task orders, contributing to the pullback.
- Short-Term Trend Analysis: Currently, the stock is trading 14.8% above its 20-day simple moving average and 49.7% above its 100-day SMA, indicating a strong short-term trend, although shares have decreased by 44.53% over the past year.
- Market Performance Assessment: With a Benzinga Edge score of 83/100 for momentum, Redwire's stock is outperforming the broader market, prompting investors to stay alert for upcoming earnings and market conditions that could influence its trajectory.
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Analyst Views on RDW
Wall Street analysts forecast RDW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RDW is 12.50 USD with a low forecast of 6.00 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
6 Buy
2 Hold
1 Sell
Moderate Buy
Current: 12.810
Low
6.00
Averages
12.50
High
22.00
Current: 12.810
Low
6.00
Averages
12.50
High
22.00
About RDW
Redwire Corporation is an integrated aerospace and defense company focused on advanced technologies. The Company is focused on aerospace infrastructure, autonomous systems and multi-domain operations leveraging digital engineering and AI automation. Its capabilities include avionics, sensors, power solutions, critical structures, mechanisms, radio frequency systems, platforms, missions, microgravity payloads and uncrewed airborne system (UAS) technology. It specializes in core avionics, such as scalable power distribution and on-board computing capabilities. These specialized avionics and sensors can be applied across multiple space environments, including Low Earth Orbit, Geostationary Orbit, Cis-lunar and deep space missions. It provides a range of sensors, including star trackers and sun sensors, which are critical for navigation and control of spacecraft. It offers a variety of solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Redwire Corporation Secures $151 Billion Missile Defense Contract
- Contract Award: Redwire Corporation has been awarded a missile defense contract from the Department of Defense with a ceiling of $151 billion, which, despite being a multi-award deal with no guaranteed revenue, has positively impacted the stock price.
- Stock Volatility: Although Redwire shares have surged nearly 75% over the past month, they fell 6.76% on Wednesday to $13.24, reflecting the market's sensitivity to geopolitical developments.
- Brand Integration: Redwire announced the sunset of the Edge Autonomy brand, integrating it into the Redwire brand to enhance market visibility in defense and space technology, thereby strengthening its strategic positioning.
- Leadership Structure: The space segment is led by Mike Gold, focusing on spacecraft and large space infrastructure, while the defense segment is led by Steve Adlich, concentrating on combat-proven autonomous systems and optical sensors, indicating the company's commitment to the defense and space markets.
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