Ondas (NASDAQ:ONDS) Shares Down 8.1% - Here's Why

Key Points

• Ondas shares fell 8.1% to $6.32, with roughly 41 million shares traded—about 48% below the average daily volume.
• Analyst sentiment remains mixed: the stock has a consensus “Moderate Buy” rating and a $16.89 price target, despite recent downgrades to “strong sell” and “sell.”
• Ondas reported a quarterly EPS loss of $0.19, missing the $0.09-loss estimate, although revenue of $83.77 million exceeded expectations; insiders also recently sold shares.

Ondas Holdings Inc. (NASDAQ:ONDS - Get Free Report) shares were down 8.1% during trading on Friday. The company traded as low as $6.18 and last traded at $6.32. Approximately 40,968,174 shares traded hands during mid-day trading, a decline of 48% from the average daily volume of 78,246,852 shares. The stock had previously closed at $6.88.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Wall Street Zen downgraded shares of Ondas from a "sell" rating to a "strong sell" rating in a report on Saturday, August 15th. Citizens Jmp assumed coverage on Ondas in a research report on Monday, October 5th. They issued an "outperform" rating and a $14.00 price objective on the stock. Roth Capital reaffirmed a "buy" rating on shares of Ondas in a research note on Tuesday, August 18th. Citigroup reissued a "market outperform" rating on shares of Ondas in a research note on Monday, October 19th. Finally, Weiss Ratings cut Ondas from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, August 4th. Ten equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Ondas currently has a consensus rating of "Moderate Buy" and a consensus price target of $16.89.

Ondas Price Performance

The company has a 50-day moving average of $7.22 and a 200 day moving average of $9.11. The company has a market cap of $3.68 billion, a PE ratio of -90.29 and a beta of 2.92.

Ondas (NASDAQ:ONDS - Get Free Report) last issued its quarterly earnings data on Thursday, August 13th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.10). The company had revenue of $83.77 million for the quarter, compared to analysts' expectations of $67.97 million. Ondas had a net margin of 93.55% and a negative return on equity of 14.20%. Equities research analysts expect that Ondas Holdings Inc. will post -0.47 EPS for the current year.

Insider Activity at Ondas

In other Ondas news, Director Richard M. Cohen sold 7,500 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $8.96, for a total value of $67,200.00. Following the completion of the transaction, the director directly owned 261,836 shares in the company, valued at approximately $2,346,050.56. The trade was a 2.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Neil J. Laird sold 4,952 shares of the firm's stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $7.74, for a total transaction of $38,328.48. Following the completion of the sale, the chief financial officer owned 42,246 shares of the company's stock, valued at approximately $326,984.04. This trade represents a 10.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 1.67% of the company's stock.

Hedge Funds Weigh In On Ondas

Several hedge funds and other institutional investors have recently modified their holdings of ONDS. Provenance Wealth Advisors LLC purchased a new stake in Ondas in the 3rd quarter worth $48,000. Pilgrim Partners Asia Pte Ltd acquired a new stake in shares of Ondas in the third quarter valued at about $26,000. ProShare Advisors LLC increased its stake in shares of Ondas by 5.5% during the third quarter. ProShare Advisors LLC now owns 69,467 shares of the company's stock worth $509,000 after purchasing an additional 3,635 shares in the last quarter. LJI Wealth Management LLC acquired a new position in shares of Ondas during the 3rd quarter worth about $84,000. Finally, Pinnacle Wealth Planning Services Inc. lifted its stake in Ondas by 7,185.7% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 3,570 shares of the company's stock valued at $26,000 after buying an additional 3,521 shares in the last quarter. 37.73% of the stock is owned by hedge funds and other institutional investors.

About Ondas

Ondas Holdings Inc NASDAQ: ONDS develops autonomous drone systems and private wireless networking solutions for industrial, government, and critical-infrastructure applications. Its businesses are focused on enabling automated data collection, remote monitoring, inspection, and secure communications in environments where conventional connectivity or manually operated equipment may be less effective.

Through its Ondas Autonomous Systems businesses, including American Robotics and Airobotics, the company offers autonomous unmanned aerial systems, drone-in-a-box platforms, and related software and services.

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