Ondas (NASDAQ:ONDS) Shares Gap Down on Disappointing Earnings

Ondas Holdings Inc. (NASDAQ:ONDS) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $9.77, but opened at $8.98. Ondas shares last traded at $9.2060, with a volume of 46,172,494 shares changing hands.

The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.10). The firm had revenue of $83.77 million during the quarter, compared to analyst estimates of $67.97 million. Ondas had a negative return on equity of 14.17% and a net margin of 247.85%.

Analyst Upgrades and Downgrades

A number of research firms have commented on ONDS. Roth Capital began coverage on Ondas in a research report on Tuesday. They issued a “buy” rating and a $13.00 target price on the stock. Wall Street Zen cut Ondas from a “hold” rating to a “sell” rating in a report on Sunday, May 24th. Zacks Research raised Ondas from a “strong sell” rating to a “hold” rating in a research report on Monday, May 25th. LADENBURG THALM/SH SH upgraded shares of Ondas to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Needham & Company LLC decreased their target price on shares of Ondas from $23.00 to $19.00 and set a “buy” rating on the stock in a research report on Tuesday, July 7th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $16.33.

Insider Buying and Selling at Ondas

In other news, CEO Eric A. Brock sold 2,378,245 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $13.43, for a total value of $31,939,830.35. Following the transaction, the chief executive officer owned 3,583,010 shares in the company, valued at approximately $48,119,824.30. This represents a 39.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Randy Seidl sold 10,000 shares of Ondas stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $9.83, for a total transaction of $98,300.00. Following the sale, the director owned 295,504 shares in the company, valued at $2,904,804.32. This represents a 3.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 2,395,745 shares of company stock valued at $32,109,380. Insiders own 1.67% of the company’s stock.

Institutional Trading of Ondas

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in Ondas by 39.9% in the fourth quarter. Vanguard Group Inc. now owns 18,767,157 shares of the company’s stock valued at $183,167,000 after purchasing an additional 5,351,725 shares during the period. Van ECK Associates Corp acquired a new stake in shares of Ondas during the fourth quarter worth about $71,202,000. State Street Corp boosted its stake in shares of Ondas by 130.2% during the fourth quarter. State Street Corp now owns 5,162,151 shares of the company’s stock worth $50,383,000 after buying an additional 2,920,071 shares during the period. Two Sigma Investments LP grew its holdings in shares of Ondas by 1,325.9% during the third quarter. Two Sigma Investments LP now owns 4,568,238 shares of the company’s stock worth $35,267,000 after buying an additional 4,247,859 shares during the last quarter. Finally, Geode Capital Management LLC increased its position in Ondas by 22.3% in the 4th quarter. Geode Capital Management LLC now owns 4,255,992 shares of the company’s stock valued at $41,558,000 after acquiring an additional 774,862 shares during the period. Institutional investors and hedge funds own 37.73% of the company’s stock.

Ondas Stock Performance

The company has a 50-day moving average of $8.35 and a 200-day moving average of $9.55. The stock has a market cap of $5.31 billion, a price-to-earnings ratio of 231.85 and a beta of 2.72.

Ondas Company Profile

Ondas Holdings, Inc (NASDAQ: ONDS) develops secure private wireless networking solutions and unmanned aircraft systems tailored to mission-critical industrial applications. Its Ondas Networks division offers the proprietary FullMAX platform, a long-range, high-bandwidth broadband network designed to support real-time data transmission, remote monitoring and IoT deployments across rail, maritime and infrastructure environments. The broadband platform integrates edge-to-cloud architecture to ensure operational resilience and regulatory compliance for transportation and utility operators.

The company’s Ondas Autonomous Systems segment builds heavy-lift cargo drones and uncrewed aircraft platforms for logistics, pipeline and infrastructure inspection, emergency response and other government and commercial use cases.