Why Redwire Stock Collapsed 30% Last Month
Shares of Redwire Corporation (NYSE: RDW) sank 30% last month and are now down over 75% from all-time highs, according to data from S&P Global Market Intelligence. An IPO from 2021 that is targeting the defense and space solutions sector, Redwire Corporation is down due to executive change, growing shareholder dilution, and a huge free cash flow burn.
Should you buy the dip on Redwire stock? Here's why it was falling yet again in the month of November.
On the cutting edge of the defense sector, Redwire sells autonomous aircraft (drones), space exploration, and space defense technologies. It is trying to ride the wave of growing spending on space defense, including proposed contracts such as the Golden Dome to protect the United States using satellite technology. This has enabled the business to grow quickly, with a current backlog of $355 million and a book-to-bill ratio of 1.25, which measures the amount of new contracts it has booked compared to how much it billed customers in the period.
Source Fool.com
