RDW Stock Rises: Fresh $21.5M Air Force Drone Contract Adds To Defense Pipeline

• The latest order includes a second purchase of the Advanced Navigation version of the Stalker Block 30 uncrewed aircraft system, along with additional standard systems.
• Despite Wednesday's gains, RDW shares remain sharply below their May highs following a Jefferies downgrade and the company's announcement of a $500 million at-the-market stock offering.
• Some retail traders on Stocktwits viewed the latest contract as evidence that the recent selloff was excessive and expressed optimism ahead of earnings.

Shares of Redwire Corp (RDW) gained in early-morning trade on Wednesday after the company announced a $21.5 million follow-on award under a purchase order to support the U.S. Air Force's Portfolio Acquisition Executive Robotic Autonomous System (PAE RAS).

The awards, received in the second quarter, build on $20 million in orders Redwire received from the same AIR PMO office in the first quarter (Q1). The initial order included the Marine Corps' first purchase of Redwire's Advanced Navigation version of its Stalker Block 30 uncrewed aircraft system. 

The new order includes a second order for the Advanced Stalker Block 30, alongside standard systems. 

RDW’s stock rose nearly 4% in pre-market trade and was among the top trending tickers on Stocktwits at the time of writing. However, retail sentiment around the company on the platform remained in ‘bearish’ territory over the past day.
 

Why RDW Stock Has Been Under Pressure

RDW’s stock surged as much as 223% year-to-date by late May before Jefferies downgraded it from ‘Buy’ to ‘Hold’ on June 1, even as the firm raised its price target from $13 to $24. It stated that near-term upside looked capped until Redwire's order backlog converted into actual revenue. 

Redwire's downgrade and subsequent at-the-market (ATM) stock offering to raise up to $500 million brought the stock down from highs of nearly $26 to under $10 as of Tuesday’s close. Overall, Redwire fell roughly 50% in June alone and continued sliding into July.

RDW’s stock now needs a jump of over 150% to climb back towards its 52-week high.

How Is Retail Feeling About RDW Stock Rebound?

Retail traders on Stocktwits framed Wednesday's contract as validation that the selloff might have been a market overreaction. One user called the drop "a little excessive," questioning why the stock got "beat on that bad" given the fundamentals. 

Another pointed to the new award as "another contract, a major one at that" ahead of earnings, predicting the stock would reach $30 by year-end.

Redwire is scheduled to report second-quarter earnings next month. Wall Street currently expects a loss of $0.15 per share on revenue of $107 million, which would mark a 73.89% increase year-over-year.

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