Sidus Space Stock Rebounds Wednesday: What's Driving The Action?

Sidus Space Inc (NASDAQ:SIDU) shares are trading higher Wednesday, staging a recovery after falling sharply Tuesday. Here’s what investors need to know.

• Sidus Space shares are powering higher. Why is SIDU stock surging?

What To Know: The defense and space technology company has experienced a rollercoaster week driven by conflicting catalysts: a major government contract win followed immediately by a significant capital raise.

The stock’s upward momentum Wednesday contrasts sharply with Tuesday’s sell-off. The decline was triggered by the company pricing a public offering of over 19 million Class A shares at $1.30 per share, targeting roughly $25 million in gross proceeds. The offering was scheduled to close on Dec. 24, subject to customary conditions.

Wednesday's gains likely reflect stabilization as the market digests the dilution and refocuses on the catalyst that originally sent shares soaring over 90% on Monday: the Missile Defense Agency’s SHIELD IDIQ program.

Sidus was selected as an awardee to support the government’s “Golden Dome” initiative, accelerating the delivery of AI-enabled systems for U.S. missile defense.

With the capital raise expected to conclude Wednesday, Sidus plans to deploy the proceeds toward manufacturing expansion and product development to scale its operations across commercial and defense markets.

Benzinga Edge Rankings: Despite recent volatility, Benzinga Edge technical analysis signals underlying strength, displaying positive Price Trend indicators across Short, Medium and Long-term horizons.

SIDU Price Action: Sidus Space shares were up 30.91% at $2.16 at the time of publication on Wednesday, according to Benzinga Pro data.

Given the strong upward movement, traders may look for resistance around the $2.20 level, which was the intraday high. If the stock can maintain momentum and break above this level, it could pave the way for further gains, potentially targeting the $2.50 mark.

On the downside, should the stock retrace, the $1.90 area appears to be a critical support level. A failure to hold above this level could lead to increased selling pressure, potentially driving the price back toward the $1.80 mark.

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