Ondas (NASDAQ:ONDS) Stock Falls 4.1% – Here’s Why

Ondas Holdings Inc. (NASDAQ:ONDS) shares were down 4.1% during trading on Wednesday. The company traded as low as $7.38 and last traded at $7.40. Approximately 53,626,237 shares changed hands during mid-day trading, a decline of 35% from the average daily volume of 82,072,664 shares. The stock had previously closed at $7.72.

Trending Headlines about Ondas

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Ondas is pursuing an acquisition spree involving five defense-technology companies. The strategy is intended to rapidly expand its autonomous defense platform and broaden its portfolio of deployable systems. Ondas acquisition spree
• Positive Sentiment: A recently announced $56 million package of three acquisitions adds AI-enabled acoustic sensing, resilient communications, remote-operations capabilities and GPS-independent navigation. These technologies could strengthen Ondas’ existing drone and autonomous-systems businesses and create cross-selling opportunities. Ondas $56 million defense acquisitions
• Positive Sentiment: Caribou Labs brings passive acoustic intelligence for detecting and tracking drones, while the defense business acquired from Ottopia Technologies adds capabilities for remote and autonomous vehicle operations. The deals reinforce Ondas’ positioning in counter-drone and autonomous-warfare markets. Caribou Labs acquisition
• Neutral Sentiment: Reports on ONDS short interest are inconsistent: one report cited elevated short interest, while another listed zero shares short. The discrepancy makes it difficult to assess potential short-covering support or downside pressure. Ondas short interest report
• Negative Sentiment: CFO Neil Laird sold 4,952 shares at an average price of $7.74, reducing his holdings by 10.49%. While the sale is relatively small, insider selling can weigh on sentiment. Ondas CFO stock sale
• Negative Sentiment: The acquisition program increases integration, funding and execution risks. Ondas remains unprofitable, and its latest quarterly EPS loss was wider than expected, so investors will look for evidence that the acquired businesses can generate sustainable revenue without increasing cash needs.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on ONDS. Roth Capital reiterated a “buy” rating on shares of Ondas in a report on Tuesday, August 18th. Weiss Ratings downgraded shares of Ondas from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, August 4th. Oppenheimer increased their price target 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 lifted their price target 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. Finally, Needham & Company LLC restated a “buy” rating and issued a $19.00 price objective on shares of Ondas in a report on Monday, September 14th. Eight equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $17.18.

Ondas Price Performance

The firm’s 50 day moving average price is $8.00 and its 200-day moving average price is $9.01. The stock has a market cap of $4.40 billion, a P/E ratio of -109.84 and a beta of 2.74.

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

Insiders Place Their Bets

In related news, CFO Neil Laird sold 4,952 shares of the stock in a transaction on Thursday, September 24th. The stock was sold at an average price of $7.74, for a total transaction of $38,328.48. Following the sale, the chief financial officer directly owned 42,246 shares of the company’s stock, valued at $326,984.04. This trade represents a 10.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, 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 value of $67,200.00. Following the completion of the sale, the director owned 261,836 shares of the company’s stock, valued at $2,346,050.56. The trade was a 2.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.67% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Beaird Harris Wealth Management LLC boosted its holdings in Ondas by 3.8% during the 4th quarter. Beaird Harris Wealth Management LLC now owns 27,250 shares of the company’s stock valued at $266,000 after acquiring an additional 1,000 shares during the period. State of Wyoming increased its stake in Ondas by 31.5% in the first quarter. State of Wyoming now owns 6,809 shares of the company’s stock worth $62,000 after purchasing an additional 1,631 shares during the period. NFSG Corp increased its stake in Ondas by 200.0% in the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock worth $27,000 after purchasing an additional 2,000 shares during the period. Steadtrust LLC lifted its position in shares of Ondas by 10.3% during the second quarter. Steadtrust LLC now owns 21,473 shares of the company’s stock worth $177,000 after purchasing an additional 2,000 shares during the last quarter. Finally, Global Retirement Partners LLC boosted its stake in shares of Ondas by 30.0% during the fourth quarter. Global Retirement Partners LLC now owns 13,000 shares of the company’s stock valued at $127,000 after purchasing an additional 3,000 shares during the period. Institutional investors 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.