Ondas (NASDAQ:ONDS) Trading Down 8.8% - Here's What Happened

Key Points

• Ondas shares fell 8.8% to $8.91 amid elevated trading volume, with 122.3 million shares changing hands—43% above the average session volume.
• The company reported strong growth signals, including a multi-million-dollar Israeli defense drone tender win, quarterly revenue above consensus, and a raised 2026 revenue outlook of $550 million.
• Investor concerns remain focused on profitability and valuation: Ondas posted a reported adjusted EBITDA loss of $50.6 million, trades at a high earnings multiple, and has seen substantial insider selling despite a “Moderate Buy” analyst consensus.

Ondas Holdings Inc. (NASDAQ:ONDS - Get Free Report) shares dropped 8.8% during trading on Thursday . The stock traded as low as $8.79 and last traded at $8.91. 122,276,912 shares traded hands during mid-day trading, an increase of 43% from the average session volume of 85,499,086 shares. The stock had previously closed at $9.77.

More Ondas News

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Ondas won a multi-million-dollar Israeli defense tender for next-generation tactical attack drones, expanding its international customer base and supporting its autonomous defense growth strategy. Ondas Wins Israeli Defense Tender for Next-Gen Tactical Attack Drones
• Positive Sentiment: Management raised its 2026 revenue outlook to $550 million and cited sustained momentum from defense and drone orders. Quarterly revenue of $83.77 million also exceeded the approximately $67.97 million consensus estimate. ONDS stock drops after earnings
• Positive Sentiment: Roth Capital began coverage with a bullish “strong buy” rating, while retail-investor discussions continue to highlight Ondas as a potentially significant long-term drone investment. Roth Capital Begins Coverage on Ondas
• Neutral Sentiment: Call-option activity was unusually high, with 299,121 contracts purchased—52% above typical volume—signaling elevated speculative interest but not necessarily a fundamental change in valuation.
• Negative Sentiment: The earnings reaction was pressured by a reported adjusted EBITDA loss of $50.6 million. Coverage also differed on the per-share result, with reports ranging from a $0.03 loss that beat estimates to a $0.19 loss that missed consensus, adding uncertainty around the company’s profitability and reporting details. Trends Making Noise on Wall Street Today
• Negative Sentiment: Investors appear concerned that rapid revenue growth and new contracts are not yet translating into sustainable earnings, particularly with ONDS trading at a high valuation and recent gains having increased expectations.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on ONDS. Wall Street Zen downgraded Ondas from a "hold" rating to a "sell" rating in a research report on Sunday, May 24th. Roth Capital assumed coverage on Ondas in a research report on Tuesday. They set a "buy" rating and a $13.00 target price on the stock. Zacks Research upgraded Ondas from a "strong sell" rating to a "hold" rating in a report on Monday, May 25th. LADENBURG THALM/SH SH upgraded Ondas to a "strong-buy" rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings lowered shares of Ondas from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Ondas presently has a consensus rating of "Moderate Buy" and an average price target of $16.33.

Ondas Price Performance

The firm has a market cap of $5.08 billion, a PE ratio of 222.75 and a beta of 2.72. The company has a 50-day simple moving average of $8.35 and a 200-day simple moving average of $9.55.

Insider Buying and Selling

In other Ondas news, Director Richard M. Cohen sold 7,500 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $9.50, for a total value of $71,250.00. Following the sale, the director owned 264,853 shares in the company, valued at $2,516,103.50. This trade represents a 2.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Eric A. Brock sold 2,378,245 shares of the stock in a transaction on 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 completion of the sale, the chief executive officer owned 3,583,010 shares in the company, valued at approximately $48,119,824.30. The trade was a 39.90% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 2,395,745 shares of company stock valued at $32,109,380. Insiders own 1.67% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. increased its stake in Ondas by 444.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 112,373 shares of the company's stock worth $120,000 after buying an additional 91,732 shares during the period. Geode Capital Management LLC boosted its position in Ondas by 57.4% in the 2nd 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 during the period. NewEdge Advisors LLC purchased a new stake in Ondas in the 2nd quarter valued at about $152,000. Sei Investments Co. bought a new position in Ondas in the 2nd quarter worth about $3,086,000. Finally, HRT Financial LP bought a new position in Ondas in the 2nd quarter worth about $2,244,000. 37.73% of the stock is currently owned by institutional investors.

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.

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