Redwire (RDW) Stock Pulls Back As Traders Digest Missile Defense Win

Redwire Corporation (NASDAQ:RDW) shares are trading lower Thursday as the stock continues to pull back from recent strength. The pullback comes as traders potentially take profits and digest the company's latest major contract announcement. Here’s what investors need to know.

Redwire shares are sliding. Why is RDW stock falling?

$151 Billion Missile Defense Agency SHIELD Contract Sparks Rally

Redwire shares jumped Tuesday after the company said it secured a spot on the Missile Defense Agency's Multi-Vendor SHIELD IDIQ contract, under its $151 billion defense program. The program is designed to support U.S. homeland defense with advanced missile-tracking and intercept capabilities.

Participation in the SHIELD IDIQ positions Redwire to compete for task orders across a wide range of missile defense work, potentially boosting long-term revenue opportunities if the company successfully wins follow-on awards.

Why RDW Stock Is Pulling Back Today

Despite the positive contract news, RDW stock is slipping as short-term traders potentially lock in profits following recent strength. It's common for high-beta defense and space names to see volatility around major announcements, especially after a fast move higher.

Investors may also be waiting for more clarity on the specific scope, timing and potential financial impact of Redwire's SHIELD-related task orders.

Strong Short-Term Trends Signal Opportunity

The stock is currently trading 14.8% above its 20-day simple moving average (SMA) and 49.7% above its 100-day SMA, indicating a strong short-term trend. Over the past 12 months, shares have decreased by 44.53% and are currently positioned closer to their 52-week lows than highs.

The RSI is at 62.92, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. The combination of neutral RSI and bullish MACD suggests there may be more upside for the stock.

Key Resistance: $13.50
Key Support: $10.50

Redwire’s Business Model

Redwire is engaged in mission-critical space solutions and reliable components for the next-generation space economy. It assists its customers in solving the complex challenges of future space missions and industries. The company’s space infrastructure offerings include a broad array of modern products and services, which have been enabling space missions.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Redwire, highlighting its strengths and weaknesses compared to the broader market:

Momentum: Bullish (Score: 83/100) — Stock is outperforming the broader market.

The Verdict: Redwire’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the market. Investors should remain attentive to upcoming earnings and market conditions that could impact the stock’s trajectory.