Redwire Corporation (NYSE:RDW) said Thursday it secured a contract from Astrobiome Space to conduct the first mission aboard its commercial space greenhouse on the International Space Station.
The announcement sent Redwire shares nearly 16% higher as investors welcomed a new commercial space agriculture milestone.
The gain followed a sharp pullback earlier this week, when Redwire shares fell 15% after Jefferies downgraded the stock to Hold from Buy on valuation concerns, despite raising its price forecast to $24.
Short Squeeze Likely Added Fuel
Thursday’s move may have been amplified by short covering. Approximately 17.96% of Redwire’s public float was sold short, creating conditions for a potential short squeeze as bullish traders piled into the stock following the contract announcement.
First Strawberries To Be Grown In Space
The mission will test Astrobiome Space’s microbial biostimulant while growing wild strawberries in orbit, marking the first cultivation of the fruit in space. Astrobiome Space expects the product to improve crop resilience and nutrient density.
Redwire said its Greenhouse platform is designed to support long-duration space missions and advance commercial space agriculture. Astrobiome Space will begin Earth-based testing this month ahead of 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.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $16.80. Recent analyst moves include:
- Jefferies: Downgraded to Hold (Raises forecast to $24.00) (June 1)
- Canaccord Genuity: Buy (Raises forecast to $14.00) (May 11)
- Truist Securities: Upgraded to Buy (Raises forecast to $15.00) (March 9)
Redwire Technical Analysis
RDW stock remains well above its key trend lines.
The stock trades about 32% above its 20-day simple moving average of $16.25. It also trades roughly 126% above its 200-day simple moving average of $9.47.
That shows how strong the longer-term rally has been. The bullish setup also remains intact. The 20-day SMA is above the 50-day SMA. A golden cross in April also keeps the broader trend pointed higher.
Momentum still looks positive. The MACD is above its signal line. The histogram is also positive. That suggests buyers still have control after the recent pullback.
Still, the stock looks extended. When a stock trades this far above its moving averages, any loss of buying pressure can lead to a sharp pullback.
- Key Resistance: $26.64. This is the 52-week high from May.
- Key Support: $16.25. This is the 20-day SMA and the nearest major trend support.
RDW Stock Price Activity: Redwire shares were up 15.84% at $21.57 at the time of publication on Thursday, according to Benzinga Pro data.
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