Ondas (NASDAQ:ONDS) Stock Falls 14.2% – Should You Sell?

Shares of Ondas Holdings Inc. (NASDAQ:ONDS) dropped 14.2% during mid-day trading on Thursday. The company traded as low as $4.38 and last traded at $4.52. Approximately 63,851,985 shares changed hands during trading, a decline of 18% from the average daily volume of 77,640,852 shares. 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 Analyst Weigh In

ONDS has been the topic of a number of research analyst reports. Needham & Company LLC reaffirmed a “buy” rating and set a $19.00 target price on shares of Ondas in a research note on Monday, September 14th. Citizens Jmp assumed coverage on Ondas in a research note on Monday, October 5th. They issued an “outperform” rating and a $14.00 price target for the company. Citigroup reissued a “market outperform” rating on shares of Ondas in a report on Monday, October 19th. Wall Street Zen lowered Ondas from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 15th. Finally, Roth Capital restated a “buy” rating on shares of Ondas in a research report on Tuesday, August 18th. Eleven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $16.89.

Ondas Stock Up 18.1%

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

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

Insider Transactions at Ondas

In other Ondas news, CFO Neil Laird sold 4,952 shares of the company’s stock in a transaction dated Thursday, September 24th. The stock was sold at an average price of $7.74, for a total value of $38,328.48. Following the sale, the chief financial officer owned 42,246 shares in the company, valued at approximately $326,984.04. The trade was a 10.49% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Richard Cohen sold 7,500 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $8.96, for a total transaction of $67,200.00. Following the sale, the director directly owned 261,836 shares of the company’s stock, valued at $2,346,050.56. This represents a 2.78% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.67% of the company’s stock.

Hedge Funds Weigh In On Ondas

Large investors have recently modified their holdings of the company. RFG Advisory LLC increased its stake in Ondas by 57.0% during the 2nd quarter. RFG Advisory LLC now owns 2,787,202 shares of the company’s stock valued at $22,967,000 after purchasing an additional 1,012,353 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Ondas during the second quarter valued at about $13,158,000. Bank of America Corp DE grew its holdings in shares of Ondas by 1,443.9% during the first quarter. Bank of America Corp DE now owns 1,404,812 shares of the company’s stock valued at $12,700,000 after buying an additional 1,313,823 shares during the last quarter. Oppenheimer & Co. Inc. increased its position in shares of Ondas by 17.2% during the third quarter. Oppenheimer & Co. Inc. now owns 1,156,205 shares of the company’s stock worth $8,475,000 after acquiring an additional 170,075 shares in the last quarter. Finally, Kranot Hishtalmut Le Morim Tichoniim Havera Menahelet LTD increased its position in shares of Ondas by 63.0% during the second 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 acquiring an additional 393,133 shares in the last quarter. 37.73% of the stock is currently 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.