7 Best Small-Cap Drone Stocks to Buy Now

4. Redwire Corporation (NYSE:RDW)

Market Capitalization: $1.44 Billion

No. of Hedge Fund Holders: 7

Redwire Corporation (NYSE:RDW) is a global space infrastructure and innovation company that offers civil, commercial, and national security programs in the U.S., Europe, and internationally. On January 21, the company announced the acquisition of Edge Autonomy, a leading provider of field-proven uncrewed airborne system (UAS) technology. The company has acquired Edge Autonomy for $925 million on a debt-free, cash-free basis.

Edge Autonomy will enhance Redwire Corporation’s position as a global leader in multi-domain autonomous technology, expanding its portfolio of combat-proven autonomous airborne platforms. The merger is expected to increase Redwire’s revenue immediately, with a full-year 2025 revenue projected between $535 million and $605 million.

On January 22, HC Wainwright & Co. analyst Scott Buck upgraded RDW’s share price from $18 to $26 and maintained a Buy rating on the stock. The analyst has increased the price target following the latest acquisition. In addition to this deal, Redwire Corporation (NYSE:RDW) recently signed a five-year contract worth $45.56 million to design and develop large novel and emerging spacecraft technologies for the U.S. Air Force Research Laboratory (AFRL). RDW remains an emerging drone stock with a small market capitalization.