What Happened?
Shares of aerospace and defense company Redwire (NYSE: RDW) fell 17% in the morning session after the company priced a public offering for roughly 15.5 million shares of its common stock at a price of $16.75 per share. The gross proceeds from the offering was expected to be around $260 million.
Notably, before the announcement, RDW had approx. 77m shares outstanding, which means the stock sale could significantly raise the supply. This could have a negative impact on its stock price as the increase in the supply of outstanding shares dilutes the ownership of existing shareholders.
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What The Market Is Telling Us
Redwire’s shares are extremely volatile and have had 93 moves greater than 5% over the last year. But moves this big are rare even for Redwire and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 21 days ago when the stock gained 13.9% after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
Redwire is down 1.7% since the beginning of the year, and at $16.75 per share, it is trading 34.7% below its 52-week high of $25.66 from February 2025. Investors who bought $1,000 worth of Redwire’s shares at the IPO in January 2021 would now be looking at an investment worth $1,609.
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