Ondas (NASDAQ:ONDS) Shares Gap Up - Still a Buy?

Key Points

• Shares gapped up premarket (opened $8.39 vs prior close $8.07) and last traded around $7.54 on heavy volume (~31.98M); analysts carry a consensus “Moderate Buy” rating with a $9.67 average price target and several firms setting targets of $10–$12.
• Ondas reported revenue of $10.1M (above estimates) but missed EPS (‑$0.06 vs est. ‑$0.05), posts materially negative margins and ROE, and is forecast to deliver about ‑$0.53 EPS for the current fiscal year.
• Director Ron Stern sold 850,000 shares at an average $7.91 (≈$6.72M), leaving insiders with roughly 1.6% ownership.

Ondas Holdings Inc. (NASDAQ:ONDS - Get Free Report)'s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $8.07, but opened at $8.39. Ondas shares last traded at $7.5390, with a volume of 31,984,060 shares.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on ONDS shares. Zacks Research cut shares of Ondas from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, November 18th. Lake Street Capital increased their target price on Ondas from $9.00 to $10.00 and gave the stock a "buy" rating in a report on Wednesday, November 26th. Oppenheimer raised Ondas from a "market perform" rating to an "outperform" rating and set a $12.00 price target on the stock in a research note on Friday, November 14th. Loop Capital set a $10.00 price target on Ondas in a research report on Wednesday, November 26th. Finally, HC Wainwright initiated coverage on Ondas in a research note on Monday, October 6th. They set a "buy" rating and a $12.00 price objective for the company. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $9.67.

Ondas Stock Performance

The stock has a market cap of $2.89 billion, a price-to-earnings ratio of -19.59 and a beta of 2.42. The firm's 50-day simple moving average is $7.72 and its two-hundred day simple moving average is $4.68.

Ondas (NASDAQ:ONDS - Get Free Report) last announced its earnings results on Thursday, November 13th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The company had revenue of $10.10 million for the quarter, compared to analyst estimates of $7.04 million. Ondas had a negative return on equity of 35.16% and a negative net margin of 192.60%. Equities research analysts expect that Ondas Holdings Inc. will post -0.53 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Ron Stern sold 850,000 shares of Ondas stock in a transaction on Wednesday, November 26th. The stock was sold at an average price of $7.91, for a total value of $6,723,500.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Ondas

Hedge funds have recently added to or reduced their stakes in the company. IFP Advisors Inc increased its position in Ondas by 231.4% in the third quarter. IFP Advisors Inc now owns 4,142 shares of the company's stock worth $32,000 after purchasing an additional 2,892 shares during the period. RiverGlades Family Offices LLC boosted its stake in shares of Ondas by 54.0% in the 3rd quarter. RiverGlades Family Offices LLC now owns 15,400 shares of the company's stock valued at $119,000 after purchasing an additional 5,400 shares during the last quarter. Wexford Capital LP acquired a new stake in shares of Ondas during the 3rd quarter worth approximately $67,000. SBI Securities Co. Ltd. raised its stake in shares of Ondas by 154.9% during the second quarter. SBI Securities Co. Ltd. now owns 16,299 shares of the company's stock worth $31,000 after buying an additional 9,904 shares during the last quarter. Finally, Beaird Harris Wealth Management LLC lifted its holdings in Ondas by 61.5% in the third quarter. Beaird Harris Wealth Management LLC now owns 26,250 shares of the company's stock valued at $203,000 after buying an additional 10,000 shares during the period. Institutional investors own 37.73% of the company's stock.

Ondas Company Profile

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.

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