Why Redwire Stock Is Soaring Today

Extending gains that archetypal started taking signifier successful aboriginal May, shares of aerospace outfit Redwire (NYSE: RDW) are up again today. In fact, their 27.7% summation arsenic of 11:50 a.m. ET Tuesday is 1 of their champion single-day moves successful months, pushing the banal to levels past seen successful aboriginal 2025.

Just don't look for a company-specific crushed for today's large jump. You won't find it. Rather, RDW is riding a question of euphoria surrounding a higher-profile sanction successful the concern that's lifting a clump of abstraction stocks.

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Full steam up

That sanction is SpaceX, of course. While everyone knew it was coming sooner than later, the institution officially filed its S-1 signifier with the SEC past week, moving guardant with its plans to spell public. The market's been buzzing ever since. In fact, involvement successful SpaceX's IPO (initial nationalist offering) has besides generated involvement successful different names successful and astir the businesses. Redwire is 1 of these names.

And it's surely fixed funny investors overmuch to similar of late. Just past week the institution announced a multiyear, eight-figure declaration to assistance a NATO state modernize its aerial drone fleet. Separately, besides past week, Redwire announced a $15 cardinal enlargement of an existing drone declaration with the U.S. Army.

This institution isn't conscionable a shaper of subject hardware, though. The time aft reporting its expanded woody with the U.S. Army, Redwire delivered a prototype of its lunar robotic limb to the European Space Agency, demonstrating it's 1 of the companies that tin assistance humankind instrumentality to the moon.

Of course, the aboriginal May merchandise of Redwire's coagulated Q1 results had already painted a bullish picture, making the marketplace receptive and responsive to these developments. The company's apical enactment of astir $97 cardinal for the 3 months ending successful March was up 58% twelvemonth implicit year. Just arsenic important, its backlog present stands astatine a grounds $498 million.

Not yet

The quality is intelligibly good, but is the banal a buy? Right now, astir apt not.

Don't misread the message. There volition travel a clip erstwhile RDW shares are attractively priced. This is not that time, however. Not lone is this banal overvalued arsenic a effect of the caller run-up, but the sheer velocity and scope of the rally since aboriginal May is unsafe simply due to the fact that it invites truthful overmuch contiguous profit-taking.