Why These Defense Stocks Are Declining This Week

5. Redwire Corporation (NYSE:RDW)

Weekly Decline: -22.00%

Redwire Corporation (NYSE:RDW) is a global space company, providing critical space infrastructure for government and commercial users. In January this year, the company expanded into defense with a $925 million acquisition of drone maker, Edge Autonomy.

However, the stock has fallen 37% over the past month, amid reports of ongoing investigations from law firms to ascertain whether the acquisition was fair to shareholders. Last week, the share price dipped 22%, dropping nearly $400 million in market capitalization.

A former attorney general of Louisiana and Kahn Swick & Foti, LLC are investigating the terms of the agreement. Halper Sadeh LLC, an investor rights law firm, is also inquiring into the merger.

According to a report on Investing.com, Genesis Park II LP, a major stakeholder in the company, sold $26.9 million worth of Redwire Corporation (NYSE:RDW) shares on February 25.