Ondas (NASDAQ:ONDS) Reaches New 1-Year Low – Time to Sell?

Ondas Holdings Inc. (NASDAQ:ONDS)’s share price reached a new 52-week low during trading on Thursday. The stock traded as low as $4.84 and last traded at $4.7370, with a volume of 8,715,011 shares changing hands. The stock had previously closed at $5.27.

Key Headlines Impacting Ondas

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Ondas is planning to expand U.S. manufacturing of its ULTRA ISR aircraft, targeting production of 10 aircraft per month by 2028 following its Stemme acquisition. If achieved, the goal could support larger deliveries as demand grows. Ondas manufacturing expansion announcement
• Positive Sentiment: Recent counter-drone (Counter-UAS) deals, rising orders and acquisitions underpin expectations for growth and may have helped improve investor sentiment. Ondas wins Counter-UAS deals
• Neutral Sentiment: Investors are positioning ahead of business updates expected at two events next week. Those updates could provide more detail on the company’s expansion plans and growth prospects. Ondas business updates expected next week
• Negative Sentiment: Rising expenses and execution risks could temper the growth outlook, while a broader retreat from high-beta drone and defense-tech stocks has recently weighed on ONDS. Ondas earnings outlook and risks

Wall Street Analysts Forecast Growth

ONDS has been the subject of a number of analyst reports. Citizens Jmp began coverage on Ondas in a report on Monday, October 5th. They issued an “outperform” rating and a $14.00 price target for the company. Wall Street Zen lowered shares of Ondas from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 15th. LADENBURG THALM/SH SH increased their target price on shares of Ondas from $21.50 to $22.75 and gave the company a “buy” rating in a research report on Monday, August 17th. Oppenheimer boosted their price objective on Ondas from $16.00 to $18.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Ondas in a research note on Monday. Eleven analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Ondas presently has an average rating of “Moderate Buy” and a consensus price target of $16.89.

Ondas Stock Up 18.1%

The company’s 50-day simple moving average is $6.87 and its 200 day simple moving average is $8.88. The company has a market capitalization of $3.11 billion, a P/E ratio of -76.29 and a beta of 3.10.

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

Insider Activity at Ondas

In related news, Director Richard M. Cohen sold 7,500 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $8.96, for a total value of $67,200.00. Following the completion of the transaction, the director directly owned 261,836 shares in the company, valued at approximately $2,346,050.56. The trade was a 2.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Neil J. Laird sold 4,952 shares of the company’s stock in a transaction that occurred on Thursday, September 24th. The stock was sold at an average price of $7.74, for a total value of $38,328.48. Following the transaction, the chief financial officer directly owned 42,246 shares of the company’s stock, valued at approximately $326,984.04. This trade represents a 10.49% decrease in their position. The SEC filing for this sale provides additional information. 1.67% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in ONDS. ACT Capital Partners L.P. acquired a new position in Ondas during the third quarter valued at approximately $275,000. Clearwater Capital Advisors LLC bought a new position in shares of Ondas in the 3rd quarter valued at $82,000. Moors & Cabot Inc. increased its stake in shares of Ondas by 30.8% in the 3rd quarter. Moors & Cabot Inc. now owns 96,400 shares of the company’s stock valued at $707,000 after purchasing an additional 22,675 shares during the last quarter. Allworth Financial LP raised its holdings in shares of Ondas by 20.5% during the 3rd quarter. Allworth Financial LP now owns 19,966 shares of the company’s stock worth $146,000 after buying an additional 3,400 shares in the last quarter. Finally, Fifth Third Bancorp acquired a new position in shares of Ondas during the 3rd quarter worth $35,000. 37.73% of the stock is owned by institutional investors.

Ondas Company Profile

Ondas Holdings Inc (NASDAQ: ONDS) develops autonomous drone systems and private wireless networking solutions for industrial, government, and critical-infrastructure applications. Its businesses are focused on enabling automated data collection, remote monitoring, inspection, and secure communications in environments where conventional connectivity or manually operated equipment may be less effective.

Through its Ondas Autonomous Systems businesses, including American Robotics and Airobotics, the company offers autonomous unmanned aerial systems, drone-in-a-box platforms, and related software and services.