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

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

Ondas News Roundup

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.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Wall Street Zen lowered shares of Ondas from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 15th. Needham & Company LLC reaffirmed a “buy” rating and issued a $19.00 price target on shares of Ondas in a report on Monday, September 14th. Oppenheimer lifted their price objective on shares of Ondas from $16.00 to $18.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. LADENBURG THALM/SH SH boosted their price objective on shares of Ondas from $21.50 to $22.75 and gave the company a “buy” rating in a report on Monday, August 17th. Finally, Weiss Ratings lowered Ondas from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, August 4th. Eight equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $17.18.

Ondas Trading Up 2.7%

The business’s 50-day simple moving average is $7.98 and its 200-day simple moving average is $9.02. The company has a market capitalization of $4.34 billion, a PE ratio of -108.57 and a beta of 2.74.

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

Insider Buying and Selling at Ondas

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

Institutional Trading of Ondas

Hedge funds and other institutional investors have recently bought and sold shares of the stock. CI Investments Inc. purchased a new stake in Ondas in the 1st quarter worth approximately $4,255,000. The Manufacturers Life Insurance Company grew its position in Ondas by 664.0% during the first quarter. The Manufacturers Life Insurance Company now owns 129,481 shares of the company’s stock valued at $1,171,000 after buying an additional 112,534 shares during the period. Royal Bank of Canada increased its holdings in Ondas by 160.1% in the first quarter. Royal Bank of Canada now owns 384,656 shares of the company’s stock valued at $3,477,000 after buying an additional 236,782 shares in the last quarter. Oddo BHF Asset Management Sas acquired a new position in shares of Ondas in the first quarter worth about $5,000,000. Finally, Legal & General Group Plc acquired a new position in shares of Ondas in the fourth quarter worth about $14,215,000. 37.73% of the stock is owned by institutional investors and hedge funds.

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.