Ondas (NASDAQ:ONDS) Shares Up 2.5% – What’s Next?

Shares of Ondas Holdings Inc. (NASDAQ:ONDS) were up 2.5% during mid-day trading on Monday. The company traded as high as $7.69 and last traded at $7.42. 35,623,200 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 81,159,523 shares. The stock had previously closed at $7.24.

Key Headlines Impacting Ondas

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Ondas announced a $56 million order for Electronic Safe & Arm Devices (ESADs) supporting a European loitering-munition program. The order expands the company’s participation in the growing precision-weapons market and is its first ESAD order since acquiring GATE Technologies and Bron Technologies. Production will be supported by Ondas’ operations in Poland. Ondas Receives $56 Million Order in Precision Strike Business
• Positive Sentiment: Citizens JMP initiated coverage of ONDS with a “Market Outperform” rating and a $14 price target, implying substantial upside from the referenced $7.42 share price. The bullish view identifies Ondas as a dynamic participant in drones, autonomous systems and defense technology. Citizens Initiates Coverage of Ondas at Market Outperform
• Positive Sentiment: Market coverage highlighted the combination of the defense contract and Citizens’ bullish note as the main catalysts behind the stock’s rise, with some reports describing nearly two times potential upside to the analyst target. Ondas Stock Buzzing After New Contract, Bull Note
• Neutral Sentiment: Ondas has attracted attention as a potential short-squeeze candidate because of heavy short interest, but that setup can produce sharp gains or losses and does not change the company’s underlying fundamentals. Short-Squeeze Candidates Article
• Negative Sentiment: Investors should note that Ondas remains unprofitable, recently reported a quarterly EPS miss, and is expected to post a loss for the full year. Its high beta and substantial short interest also indicate elevated risk despite the new contract and analyst support.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on ONDS shares. Citigroup began coverage on shares of Ondas in a report on Monday. They issued a “market outperform” rating on the stock. Citizens Jmp began coverage on shares of Ondas in a research note on Monday. They issued a “market outperform” rating and a $14.00 price target on the stock. Roth Capital reaffirmed a “buy” rating on shares of Ondas in a report on Tuesday, August 18th. LADENBURG THALM/SH SH boosted their price objective on Ondas from $21.50 to $22.75 and gave the stock a “buy” rating in a research report on Monday, August 17th. Finally, Oppenheimer increased their price objective on Ondas from $16.00 to $18.00 and gave the stock an “outperform” rating in a report on Friday, August 14th. Ten investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Ondas has a consensus rating of “Moderate Buy” and an average target price of $16.89.

Ondas Stock Up 2.5%

The firm has a market capitalization of $4.32 billion, a P/E ratio of -106.00 and a beta of 2.92. The business’s 50 day moving average is $7.99 and its two-hundred day moving average is $8.89.

Ondas (NASDAQ:ONDS) last announced its earnings results on Thursday, August 13th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.10). The company had revenue of $83.77 million during 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%. As a group, equities analysts anticipate that Ondas Holdings Inc. will post -0.47 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Ondas news, 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 completion of the sale, the chief financial officer directly owned 42,246 shares in the company, valued at $326,984.04. This represents a 10.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Richard M. Cohen sold 7,500 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $8.96, for a total value of $67,200.00. Following the transaction, the director directly owned 261,836 shares of the company’s stock, valued at approximately $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. 1.67% of the stock is owned by company insiders.

Institutional Trading of Ondas

Several institutional investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd grew its holdings in Ondas by 9,274.9% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,466,373 shares of the company’s stock worth $33,832,000 after acquiring an additional 3,429,398 shares during the period. RFG Advisory LLC lifted its holdings in Ondas by 57.0% in the 2nd quarter. RFG Advisory LLC now owns 2,787,202 shares of the company’s stock valued at $22,967,000 after acquiring an additional 1,012,353 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Ondas during the 2nd quarter valued at about $13,158,000. Bank of America Corp DE boosted its position in shares of Ondas by 1,443.9% during the 1st quarter. Bank of America Corp DE now owns 1,404,812 shares of the company’s stock valued at $12,700,000 after purchasing an additional 1,313,823 shares in the last quarter. Finally, Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD grew its stake in shares of Ondas by 63.0% in the 2nd quarter. Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD now owns 1,016,941 shares of the company’s stock worth $8,380,000 after purchasing 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 drone systems and private wireless networking solutions for industrial, government and critical-infrastructure applications. Its technologies are designed to support remote monitoring, inspection, security, public safety and other operations that require persistent data collection and reliable communications.

Through its subsidiaries, including American Robotics and Ondas Networks, the company offers autonomous drone platforms, command-and-control software, aerial intelligence solutions and industrial-grade wireless networks.