Redwire Corp. (NYSE:RDW) said Tuesday it won a contract from Taiwan Color Optics Inc. (TCO), a subsidiary of SemiLux International Ltd., to deliver its Penguin Mk2.5 VTOL Uncrewed Aerial System (UAS) to the Taiwan Coast Guard.
Redwire shares climbed after the announcement as investors welcomed the defense contract. The award supports Taiwan’s maritime security and defense resilience plans.
Redwire said the Penguin Mk2.5 was selected for its long-endurance performance, vertical takeoff and landing capability, and integrated EO/IR payloads for intelligence, surveillance and reconnaissance missions.
The company said the platform can operate in harsh environments, perform day and night ISR missions, and track small moving targets.
Technical Analysis
From a longer-term trend view, RDW is still rebuilding after a weak 12-month stretch (down 26.32%), but it’s holding above its bigger trend gauges: the stock is trading 4.2% above its 100-day SMA ($11.60) and 21% above its 200-day SMA ($9.99).
That keeps the intermediate uptrend attempt intact even though the stock is still trading 19.3% below its 20-day SMA ($14.98) and 13.7% below its 50-day SMA ($14.01), which is a reminder that the shorter-term trend has been under pressure.
The golden cross in April (50-day SMA above the 200-day SMA) is still a constructive backdrop, but momentum has cooled: MACD is below its signal line and the histogram is negative, which points to fading upside pressure unless buyers can re-accelerate the move.
In plain English, when MACD sits below its signal line, it usually means the most recent push higher is losing steam versus the prior baseline.
- Key Resistance: $12.00 — a nearby round-number/pivot area that can act like a “line in the sand” for short-term follow-through
Analyst Outlook
Wall Street maintains a consensus Buy rating on the stock, with an average price forecast of $17.67 based on five analysts. Recent rating actions include a Hold from Jefferies, a Buy from Canaccord Genuity and a Buy upgrade from Truist Securities.
RDW Stock Price Activity: Redwire shares were up 4.53% at $12.22 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo via Shutterstock
Login to comment