Why Redwire Stock Popped Today

1 week ago 7

Redwire Corporation (NYSE: RDW) banal jumped 5.3% done 11:35 a.m. ET Wednesday, 1 time aft NASA Administrator Jared Isaacman unveiled the abstraction agency's caller $20 cardinal "Ignition" program to physique a basal connected the moon.

Redwire specializes successful gathering abstraction infrastructure, and a satellite base, by definition, comprises a batch of infrastructure. Although Redwire wasn't specifically named successful Isaacman's announcement, it's logical to presume it volition play a role.

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Artist's depiction of a Phase 3 NASA Ignition satellite  base.

Image source: NASA.

Isaacman outlined a three-phase effort culminating successful the constitution of a semi-permanently occupied satellite basal by 2032. The archetypal signifier volition impact exploratory landings connected the satellite by NASA astronauts and investigating instrumentality to enactment a satellite base. (Redwire volition presumably physique immoderate of this equipment.)

Things whitethorn footwear into higher cogwheel successful Phase 2, which volition found aboriginal infrastructure to enactment astronauts visiting the moon. By Phase 3, things could truly beryllium rolling, arsenic NASA builds the structures and instrumentality it needs to enactment "habitation, aboveground mobility and logistics ... for a continuous quality foothold connected the Moon."

It's important to enactment that, astatine this point, Redwire hasn't won immoderate contracts nether either Phase 2 oregon Phase 3 -- the Ignition task is lone 1 time old, aft all. Still, Redwire's integral relation successful gathering instrumentality for abstraction enactment (just yesterday, the institution won a declaration to present low-mass star arrays for Moog (NYSE: MOGA) (NYSE: MOGB) to usage connected nationalist information satellites) makes it a logical beneficiary of NASA's propulsion to enactment an American basal connected the moon.

Best of all, astatine hardly 5 times sales, Redwire banal is arguably the cheapest abstraction banal retired there. If you privation to put successful NASA's satellite basal plans, Redwire banal is simply a bully spot to start.

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