Redwire Corp. (RDW) saw its stock price plummet by 10.20% during intraday trading on Monday, marking a significant downward movement for the space infrastructure company.

The sharp decline followed a rating downgrade by investment firm Jefferies, which cut Redwire from "Buy" to "Hold." While Jefferies simultaneously raised its price target for the stock from $13 to $24, the shift in recommendation to a less bullish stance prompted investors to reassess their positions, leading to selling pressure.

Furthermore, the broader commercial space sector faced headwinds, contributing to the stock's weakness. Negative sentiment was fueled by the aftermath of a Blue Origin rocket explosion during a test last week and market concerns regarding the potential valuation of a future SpaceX initial public offering. These sector-wide issues have dampened investor confidence in space-related equities, amplifying the downward pressure on Redwire's shares.