Space is getting hot again, and Redwire Corp. (Redwire (RDW)) is riding the wave. Shares surged 8.71% to $16.16 on Thursday as investors piled into space and aerospace stocks ahead of what could be the biggest IPO in years: SpaceX is expected to go public on Friday, with reports suggesting the offering could raise around $75 billion.
The broader market was also up — the Nasdaq gained 1.00% and the S&P 500 rose 0.31% — but space stocks were the real story.
For Redwire, the technical picture is a mixed bag. The stock is still in a longer-term uptrend, trading 23.4% above its 50-day simple moving average of $13.11 and 66.8% above its 200-day moving average of $9.70. A bullish golden cross formed back in April, which is a nice technical signal. But shares are also 10.3% below their 20-day moving average of $18.02, suggesting the stock is still digesting gains after hitting a high in May.
Momentum indicators aren't screaming anything extreme. The relative strength index sits at 45.90, which is right in the middle — not overbought, not oversold. Key resistance is around $17.50, while support sits near $14.50, close to the 50-day exponential moving average.
The next big catalyst for Redwire is its earnings report, expected around August 5. Analysts are looking for a loss of 16 cents per share, which would be a big improvement from the loss of 41 cents a year earlier. Revenue is projected to nearly double to $106.96 million from $61.76 million.
Wall Street is generally bullish. The consensus rating is Buy, with an average price target of $18.75. Recent analyst calls include a Hold from Jefferies on June 1, a Buy from Canaccord Genuity on May 11, and a Buy upgrade from Truist Securities on March 9.
Whether the SpaceX IPO lives up to the hype remains to be seen, but for now, the space sector is enjoying the spotlight — and Redwire is along for the ride.
