Redwire Corporation (RDW) shares fell on Friday, May 29. This pullback followed a massive rally in preceding weeks. The stock had surged nearly three-fold to a 52-week high. Its run-up included an 86% gain over a six-day period. This made the stock significantly overbought and prompted profit-taking. On Friday, the stock dropped more than 5% amid a broader downturn in the space sector.
Two key factors intensified the sell-off. Filings revealed major shareholder AE Industrial Partners sold large blocks of shares throughout May. This raised investor concerns about selling pressure. Additionally, the space industry faced headwinds. A Blue Origin rocket exploded during a test, triggering a sell-off across space-related stocks.