Why Redwire Stock Is Falling On Monday?

Redwire Corp (NYSE:RDW) stock is trading lower on Monday. The stock is continuing its downward momentum from Friday. Traders are taking profits after a sharp, news-driven rally.

The equity is giving back gains from last week’s massive surge. The stock faced immediate selling pressure after hitting a resistance ceiling. Shares fell 2.79% to close at $13.60 on Friday afternoon, according to Benzinga Pro.

Tech Giants Spark Initial Rally

The initial rally started on Thursday. The Wall Street Journal reported that Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG)and SpaceX are discussing a rocket-launch arrangement.

The partnership ties directly into orbital data centers. Space-based computing advocates believe solar-powered facilities can solve land and power issues. However, the stock is pulling back as the initial excitement cools down.

Strong earnings numbers support the underlying business. Last week, Redwire reported first-quarter revenue of $97 million. This represents a 57.9% increase year-over-year. The space firm also posted a record backlog of $498.1 million. Its book-to-bill ratio reached a strong 1.92.

Deep Space Missions Drive Pipeline

The company continues to expand its work with NASA. Redwire announced that its optical imaging systems and sun-sensor technology will fly on the Artemis II Orion spacecraft. The company manufactures these systems under a contract with Lockheed Martin. The agreement covers Artemis missions I through V.

Even with Monday's dip, RDW is still in a strong longer-term uptrend: it's trading 35.5% above its 20-day SMA ($10.41) and 56.9% above its 200-day SMA ($8.99), which is classic extended but trending behavior.

The 20-day SMA is above the 50-day SMA (bullish), and the golden cross in April (50-day SMA above the 200-day SMA) reinforces that the bigger-picture trend has been pointing higher.

RDW Stock Price Activity: Redwire shares were down 4.34% at $13.45 at the time of publication on Monday, according to Benzinga Pro data.

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