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

Key Points

• Ondas shares fell sharply, opening at $8.98 versus a prior close of $9.77, after the company reported quarterly EPS of $(0.19), missing the $(0.09) consensus estimate despite revenue of $83.77 million exceeding expectations.
• Analyst views remain mixed: Needham lowered its price target to $19, while Roth Capital initiated coverage with a $13 target; overall, Ondas carries a “Moderate Buy” consensus rating and a $16.33 average target.
• Insiders sold approximately 2.4 million shares worth $32.1 million over the past three months, while institutional investors own 37.73% of the stock.

Ondas Holdings Inc. (NASDAQ:ONDS - Get Free Report)'s share price gapped down prior to trading on Thursday following a dissappointing 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.

The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate 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 247.85% and a negative return on equity of 14.17%.

Analyst Ratings Changes

A number of research firms have weighed in on ONDS. Needham & Company LLC reduced their target price on Ondas from $23.00 to $19.00 and set a "buy" rating on the stock in a research note on Tuesday, July 7th. Weiss Ratings lowered shares of Ondas from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 4th. Wall Street Zen cut shares of Ondas from a "hold" rating to a "sell" rating in a report on Sunday, May 24th. Roth Capital assumed coverage on shares of Ondas in a research note on Tuesday. They issued a "buy" rating and a $13.00 price target on the stock. Finally, LADENBURG THALM/SH SH upgraded shares of Ondas to a "strong-buy" rating in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $16.33.

Insiders Place Their Bets

In other Ondas news, CEO Eric A. Brock sold 2,378,245 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $13.43, for a total transaction of $31,939,830.35. Following the sale, the chief executive officer owned 3,583,010 shares of the company's stock, valued at approximately $48,119,824.30. The trade was a 39.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 the business's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $9.83, for a total value of $98,300.00. Following the sale, the director owned 295,504 shares in the company, valued at approximately $2,904,804.32. The trade was a 3.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 2,395,745 shares of company stock worth $32,109,380 in the last three months. Corporate insiders own 1.67% of the company's stock.

Institutional Trading of Ondas

Several hedge funds and other institutional investors have recently bought and sold shares of ONDS. Goldman Sachs Group Inc. boosted its position in Ondas by 444.4% during the first quarter. Goldman Sachs Group Inc. now owns 112,373 shares of the company's stock worth $120,000 after purchasing an additional 91,732 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Ondas by 57.4% in the second quarter. Geode Capital Management LLC now owns 1,344,590 shares of the company's stock valued at $2,583,000 after buying an additional 490,239 shares in the last quarter. NewEdge Advisors LLC acquired a new position in shares of Ondas during the 2nd quarter worth approximately $152,000. Sei Investments Co. acquired a new position in shares of Ondas during the 2nd quarter worth approximately $3,086,000. Finally, HRT Financial LP purchased a new position in shares of Ondas during the 2nd quarter valued at approximately $2,244,000. 37.73% of the stock is owned by institutional investors and hedge funds.

Ondas Trading Down 4.6%

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

About Ondas

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source