10 Worst Aerospace Stocks To Buy According to Short Sellers

5. Redwire Corporation (NYSE:RDW)

Short % of Float: 7.81%

Number of Hedge Fund Holders: 8

Redwire Corporation (NYSE:RDW) is a global space infrastructure and innovation company that develops core space infrastructure offerings through long-duration projects for governments and commercial customers. It also specializes in civil, commercial, and national security programs and has an array of core offerings. These include production capabilities and technologies for sensors and avionics, radio frequency systems, structures and mechanisms, power generation, platforms, microgravity payloads, and payloads and missions. These offerings have civil space, national security, and commercial applications and are offered to both international and US-based customers.

The company’s spacecraft portfolio supports specified national security space missions in geostationary orbit. Its solutions and products include satellite technology, antennas, deployable space structures, space-qualified sensors, berthing and docking equipment, and space-enabled manufacturing payloads.

Redwire Corporation has strong financials in place, delivering year-over-year revenue and positive adjusted EBITDA growth. Revenue in Q2 2024 reached $78.1 million, undergoing a 30% growth compared to Q2 2023. Positive adjusted EBITDA stood at $1.6 million, with an improved ending liquidity of $55.8 million as of June 30, 2024. Redwire Corporation (NYSE:RDW) achieved these solid financial results while simultaneously investing in new technologies, maturing corporate infrastructure, and expanding production capacity throughout the first half of 2024. It is continually balancing near-term results with long-term growth.

It has several plans in place for 2024 to continue the positive momentum. These plans are centered around four key principles: protecting the core, scaling production, moving up the value chain, and pursuing breakthrough developments on advanced technologies to create new markets with immense potential. It is continuing to leverage its proven capabilities to develop and deploy space subsystems and components in the next-generation spacecraft and integrated mission payloads. It is also winning and delivering increasingly larger orders to meet growing demand and boost scalability. Redwire Corporation (NYSE:RDW) ranks fifth on our list of the worst aerospace stocks to buy according to short sellers.