Why Is Redwire Stock Sliding On Thursday?

Redwire Corporation (NYSE:RDW) is facing mounting bearish pressure on Thursday, with short interest in the stock climbing amid institutional selling and sector rotation.

Short Interest Climbs to 22.55%

Short interest in Redwire stock increased during the last reporting period, rising from 20.78 million to 25.58 million shares. It puts 22.55% of the company’s publicly available shares short.

Based on the recent average volume of 46.39 million shares traded per day, it would take one day for short sellers to close positions.

AE Industrial Partners Exits $114 Million Position

A regulatory filing released on Feb.2 revealed that major private equity backer AE Industrial Partners sold nearly 8.8 million shares for more than $114 million at a weighted average price of $13.07.

SpaceX IPO Speculation And SHIELD Contract

As evidence builds for a potential SpaceX IPO valuing the company at $1.5 trillion, investors are rotating capital out of public space stocks.

Redwire recently secured a spot on the Missile Defense Agency’s Multi-Vendor SHIELD IDIQ contract, part of a $151 billion defense program supporting its drone maker Edge Autonomy acquisition.

Technical Analysis

Redwire stock is currently trading 25.9% below its 20-day simple moving average (SMA) and 10.3% below its 50-day SMA, indicating a significant short-term weakness. Over the past 12 months, shares have decreased by 67.09% and are currently positioned closer to their 52-week lows than highs.

The RSI is at 44.45, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. This combination suggests mixed momentum, with the stock lacking a clear bullish signal at this time.

• Key Resistance: $9.00
• Key Support: $7.50

Earnings & Analyst Outlook

Redwire Corporation is slated to provide its next financial update on Mar. 9, 2026.

• EPS Estimate: Loss of 16 cents (Up from $-1.38 YoY)
• Revenue Estimate: $99.47 million (Up from $69.56 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price forecast of $10.93. Recent analyst moves include:

• HC Wainwright & Co.: Buy (Maintains Target to $22.00) (Dec. 23, 2025)
• Keybanc: Initiated with Sector Weight (Dec. 19, 2025)
• Cantor Fitzgerald: Overweight (Lowers Target to $9.00) (Dec. 10, 2025)

RDW Price Action: Redwire shares were down 9.99% at $8.11 at the time of publication on Thursday, according to Benzinga Pro data.

Photo: T. Schneider / Shutterstock