Space agriculture just got a little more delicious. Redwire (RDW) shares shot up nearly 16% on Thursday after the company announced it had secured a contract from Astrobiome Space to conduct the first mission aboard its commercial space greenhouse on the International Space Station.
The mission? Growing wild strawberries in orbit. That's right — the first strawberries ever cultivated in space. Astrobiome Space will use the flight to test its microbial biostimulant, which the company hopes will improve crop resilience and nutrient density for long-duration space missions.
Redwire's Greenhouse platform is designed to support exactly this kind of work, and the company sees it as a stepping stone for sustainable life-support systems beyond Earth. Astrobiome Space will start Earth-based testing this month before the ISS flight.
"This contract with Astrobiome Space marks an exciting step forward in advancing critical technology for sustainable life-support systems beyond Earth," said Marc Dielissen, Executive Vice-President of Redwire Europe.
The news gave investors a reason to pile back in after a rough start to the week. Redwire shares had fallen 15% on Monday after Jefferies downgraded the stock to Hold from Buy on valuation concerns, even as the firm raised its price target to $24.
A Short Squeeze May Have Helped
Thursday's rally might not have been purely about strawberries. With about 17.96% of Redwire's public float sold short, the contract announcement created ripe conditions for a short squeeze. As bullish traders jumped in, short sellers may have been forced to cover, adding extra lift to the stock.
What the Analysts Think
Wall Street is still broadly bullish on Redwire, with a consensus Buy rating and an average price target of $16.80. Recent analyst moves include:
- Jefferies: Downgraded to Hold (target raised to $24.00) on June 1
- Canaccord Genuity: Buy (target raised to $14.00) on May 11
- Truist Securities: Upgraded to Buy (target raised to $15.00) on March 9
The Technical Picture
Redwire's chart tells a story of a stock that has been on a tear. At $21.57, the stock trades about 32% above its 20-day simple moving average of $16.25 and roughly 126% above its 200-day SMA of $9.47. That's a massive rally, and it shows just how strong the longer-term trend has been.
The bullish setup remains intact: the 20-day SMA is above the 50-day SMA, and a golden cross in April keeps the broader trend pointed higher. Momentum indicators like the MACD are also positive, suggesting buyers still have control after the recent pullback.
But there's a catch. When a stock trades this far above its moving averages, any loss of buying pressure can lead to a sharp pullback. The key levels to watch are resistance at $26.64 — the 52-week high from May — and support at $16.25, the 20-day SMA and nearest major trend support.
For now, Redwire is riding high on space strawberries and short covering. Whether it can keep growing remains to be seen.
