Ondas (NASDAQ:ONDS) Shares Climb 2.7% – What’s Next?

Ondas Holdings Inc. (NASDAQ:ONDS) rose 2.7% on Thursday. The company traded as high as $7.73 and last traded at $7.60. 113,999,889 shares changed hands during mid-day trading, an increase of 38% from the average daily volume of 82,325,445 shares. The stock had previously closed at $7.40.

Key Headlines Impacting Ondas

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Ondas agreed to acquire three defense technology businesses for approximately $56 million, adding capabilities in AI-enabled sensing, resilient communications, remote operations and navigation that does not depend on GPS. The acquisitions could expand the company’s addressable defense market and create additional revenue opportunities. Ondas Acquires Three Defense Technology Businesses to Expand Its Integrated Autonomous Defense Systems Platform
• Positive Sentiment: Caribou Labs brings passive acoustic intelligence designed to detect, classify and track drones, including small FPV and fiber-optic-controlled systems that can be difficult for conventional detection technologies to identify. This complements Ondas’ existing autonomous defense platforms. Ondas Inc. acquired Caribou Labs
• Positive Sentiment: The acquisitions of Caribou Labs and the defense business of Ottopia Technologies, together with a third defense technology business, are being framed as a step toward building a broader autonomous defense stack. The strategic rationale has supported the stock’s recent advance. ONDS’ $56M Defense Bet: Can 3 Buyouts Build an Autonomous Warfare Stack?
• Neutral Sentiment: ONDS has elevated short interest, which can increase volatility and create the possibility of further buying if the defense acquisitions improve investor sentiment. However, short interest also signals that a significant group of investors remains skeptical about the company’s valuation and execution. Is the Market Right or Wrong About These 4 High Short Interest Stocks?
• Negative Sentiment: The $56 million spending commitment introduces integration, funding and execution risks. Investors will need evidence that Ondas can combine the businesses, convert the technology into contracts and generate sufficient revenue to justify the acquisition cost.

Wall Street Analysts Forecast Growth

ONDS has been the subject of several research analyst reports. LADENBURG THALM/SH SH upped their target price on Ondas from $21.50 to $22.75 and gave the stock a “buy” rating in a research note on Monday, August 17th. Roth Capital reissued a “buy” rating on shares of Ondas in a report on Tuesday, August 18th. Needham & Company LLC restated a “buy” rating and set a $19.00 price objective on shares of Ondas in a research report on Monday, September 14th. Weiss Ratings downgraded shares of Ondas from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, August 4th. Finally, Oppenheimer lifted their target price on shares of Ondas from $16.00 to $18.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Eight research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $17.18.

Ondas Stock Up 2.7%

The company has a 50-day moving average of $7.98 and a 200 day moving average of $9.02. The stock has a market capitalization of $4.34 billion, a PE ratio of -108.57 and a beta of 2.74.

Ondas (NASDAQ:ONDS) last announced its quarterly earnings data on Thursday, August 13th. The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.10). Ondas had a net margin of 93.55% and a negative return on equity of 14.20%. The firm had revenue of $83.77 million during the quarter, compared to analysts’ expectations of $67.97 million. As a group, equities analysts predict that Ondas Holdings Inc. will post -0.47 EPS for the current fiscal year.

Insider Transactions at Ondas

In other Ondas news, Director Richard Cohen sold 7,500 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $8.96, for a total value of $67,200.00. Following the completion of the sale, the director owned 261,836 shares in the company, valued at approximately $2,346,050.56. This represents a 2.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.67% of the company’s stock.

Institutional Investors Weigh In On Ondas

Several hedge funds and other institutional investors have recently made changes to their positions in ONDS. BlueCrest Capital Management Ltd purchased a new position in Ondas during the second quarter worth approximately $330,000. WINTON GROUP Ltd acquired a new stake in shares of Ondas in the 2nd quarter worth $2,294,000. RFG Advisory LLC increased its stake in shares of Ondas by 57.0% in the 2nd quarter. RFG Advisory LLC now owns 2,787,202 shares of the company’s stock worth $22,967,000 after acquiring an additional 1,012,353 shares during the last quarter. NewEdge Advisors LLC raised its holdings in shares of Ondas by 47.4% during the 2nd quarter. NewEdge Advisors LLC now owns 43,484 shares of the company’s stock worth $358,000 after acquiring an additional 13,993 shares during the period. Finally, Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD boosted its position in shares of Ondas by 63.0% during the 2nd quarter. Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD now owns 1,016,941 shares of the company’s stock valued at $8,380,000 after acquiring an additional 393,133 shares during the last quarter. Institutional investors and hedge funds own 37.73% of the company’s stock.

Ondas Company Profile

Ondas Holdings Inc (NASDAQ: ONDS) develops autonomous systems and private wireless network technologies for industrial, government and critical-infrastructure applications. Its businesses are focused on collecting and transmitting data in environments where conventional communications or manually operated systems may be limited.

Through its autonomous systems activities, including American Robotics and other related platforms, Ondas provides autonomous drone solutions for applications such as agriculture, infrastructure inspection, public safety and security.