Redwire (RDW) Just Bagged A $44M Defense Contract: What Investors Need To Know

Redwire Corporation (NYSE:RDW) shares are trading higher Wednesday morning following the announcement of a $44 million contract from the Defense Advanced Research Projects Agency. Here’s what investors need to know.

• RDW shares are climbing with conviction. View the charts here.

What To Know: The Phase 2 award funds the “Otter” program, a mission to demonstrate “air-breathing” spacecraft capabilities in Very Low Earth Orbit.

Redwire will utilize its U.S.-built SabreSat platform to manufacture and deliver the spacecraft, a move the company states will accelerate the development of cutting-edge defense capabilities in the VLEO domain.

This development adds to positive momentum generated earlier this week. On Monday, Redwire announced the opening of a new 85,000-square-foot facility in Ann Arbor, Michigan. The expansion aims to double the production capacity of critical fuel cells for Stalker Uncrewed Aerial Systems.

These operational wins offer a rebound for the stock, which fell earlier this month following a third-quarter earnings miss. On Nov. 5, Redwire reported a loss of 37 cents per share on revenue of $103.43 million, missing analyst estimates.

However, Wednesday’s contract validates the company’s previous report of a growing backlog, which had reached $355.6 million at the quarter’s end.

Benzinga Edge Rankings: Benzinga Edge data currently assigns Redwire a Momentum score of 5.13, reflecting the stock’s recent volatility alongside negative price trends across short, medium and long-term horizons.

RDW Price Action: Redwire shares were up 5.79% at $6.54 at the time of publication on Tuesday, according to Benzinga Pro data.

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How To Buy RDW Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Redwire’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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