MW This space stock is on pace for its longest winning streak in five months

By James Rogers

Small-cap stock Redwire ended Thursday's session up 13.4%, registering its biggest one-day percentage gain since Nov. 11, 2024, when it rose 15.1%

Redwire Corp., which manufactures and supplies space equipment, is on pace to extend its winning streak to six days, its longest positive run since a six-day streak that ended July 15.

The stock ended Thursday's session up 13.4%, registering its biggest daily percentage increase since Nov. 11, 2024, when it rose 15.1%. Redwire shares $(RDW.UK)$ are up 1.9% in premarket trades. The stock is up 500% in 2024.

Related: Space stock Redwire soared this year and is set for more 'investor enthusiasm': analyst

In a note released in November the analysis firm Alliance Global Partners said that Redwire is poised to benefit from a healthy flow of new business.

"There are not a lot of small-cap space companies with revenue scale and finding those that are profitable is even more scarce," Alliance Global Partners analyst Brian Kinstlinger said, in a note. "As a result, we argue investor enthusiasm will only strengthen over the next 12-18 months."

Alliance Global Partners raised its share-price target for the company to $16 from $10 and reiterated a buy rating.

Of five analysts surveyed by FactSet, four have buy ratings on the stock and one has a hold rating.

Related: Space stocks climb again as 'momentum sector' drives gains

In a recent blog post, Redwire said that Arthrospira C, an instrument that the company designed for the European Space Agency, was successfully installed and has begun operations on the International Space Station. The instrument uses cyanobacterium Arthrospira sp. strain PCC8005, which is commonly known as Spirulina, for carbon dioxide and nitrate removal, along with oxygen and biomass production. "The instrument is being used for an investigation focused on advancing the development of spacecraft life support systems and fresh food production in space," Redwire said in the blog post.

Earlier this month Redwire was awarded a $45.5 million contract by the Air Force Research Laboratory Space Vehicles Directorate. "Redwire will research and develop novel and emerging spacecraft technologies to include large deployable structures, thermal management capabilities, payload accommodations, and improved analysis and testing methods for in-space and terrestrial national security applications," the company said in a statement at the time.

Redwire, which has a market cap of $1.14 billion, was formed in 2020 following the acquisition of Deep Space Systems and Adcole Space by private-equity firm AE Industrial Partners.

-James Rogers

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December 27, 2024 09:33 ET (14:33 GMT)

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