Ondas (NASDAQ:ONDS) Shares Gap Down - Here's Why

Key Points

• Ondas Holdings Inc. (NASDAQ: ONDS) experienced a gap down in its stock price, opening at $5.48 compared to the previous close of $5.86, with current trading at $5.72.
• Recent analyst ratings show a positive outlook, with Lake Street Capital and others issuing "buy" ratings and raising price targets, indicating an average target of $4.67.
• The company reported a revenue increase to $6.27 million for the quarter, exceeding analyst estimates, although it still posted a negative EPS of ($0.08).

Ondas Holdings Inc. (NASDAQ:ONDS - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $5.86, but opened at $5.48. Ondas shares last traded at $5.72, with a volume of 13,523,868 shares traded.

Analyst Ratings Changes

A number of research firms have recently weighed in on ONDS. Wall Street Zen upgraded shares of Ondas from a "sell" rating to a "hold" rating in a research note on Saturday, July 12th. Needham & Company LLC assumed coverage on shares of Ondas in a report on Tuesday, August 19th. They set a "buy" rating and a $5.00 price objective on the stock. Finally, Lake Street Capital increased their target price on shares of Ondas from $2.50 to $5.00 and gave the company a "buy" rating in a research report on Wednesday, August 13th. Three investment analysts have rated the stock with a Buy rating, According to MarketBeat, the company currently has an average rating of "Buy" and an average target price of $4.67.

Ondas Stock Down 5.0%

The stock has a market cap of $1.11 billion, a price-to-earnings ratio of -9.75 and a beta of 2.42. The business's fifty day moving average is $3.12 and its two-hundred day moving average is $1.76.

Ondas (NASDAQ:ONDS - Get Free Report) last announced its quarterly earnings data on Tuesday, August 12th. The company reported ($0.08) earnings per share for the quarter, beating analysts' consensus estimates of ($0.11) by $0.03. Ondas had a negative net margin of 300.11% and a negative return on equity of 130.48%. The firm had revenue of $6.27 million during the quarter, compared to analysts' expectations of $4.97 million. As a group, sell-side analysts expect that Ondas Holdings Inc. will post -0.53 earnings per share for the current year.

Institutional Trading of Ondas

Several institutional investors have recently modified their holdings of the stock. Wells Fargo & Company MN increased its holdings in shares of Ondas by 119.2% in the 4th quarter. Wells Fargo & Company MN now owns 11,400 shares of the company's stock valued at $29,000 after acquiring an additional 6,200 shares during the period. Two Sigma Investments LP acquired a new position in Ondas in the 4th quarter valued at $31,000. SBI Securities Co. Ltd. increased its stake in Ondas by 154.9% in the 2nd quarter. SBI Securities Co. Ltd. now owns 16,299 shares of the company's stock valued at $31,000 after buying an additional 9,904 shares during the period. XTX Topco Ltd acquired a new position in Ondas in the 1st quarter valued at $32,000. Finally, Charles Schwab Investment Management Inc. acquired a new position in Ondas in the 1st quarter valued at $34,000. Hedge funds and other institutional investors own 37.73% of the company's stock.

About Ondas

Ondas Holdings Inc, through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks.