Ondas (NASDAQ:ONDS) Shares Up 2.6% - Should You Buy?

Key Points

• Ondas shares rose 2.6% to $7.39, though trading volume was 19% below its average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans positive: eight analysts rate the stock Buy, one rates it Hold, and one rates it Sell. The consensus is Moderate Buy with an average price target of $17.18.
• Ondas reported quarterly revenue of $83.77 million, above estimates, but its adjusted loss of $0.19 per share missed expectations of $0.09. The company also has significant downside risks, including negative earnings, a negative return on equity, and recent insider selling.

Ondas Holdings Inc. (NASDAQ:ONDS - Get Free Report) rose 2.6% during trading on Thursday . The stock traded as high as $7.53 and last traded at $7.39. 66,795,701 shares were traded during mid-day trading, a decline of 19% from the average daily volume of 82,551,016 shares. The stock had previously closed at $7.20.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Needham & Company LLC reaffirmed a "buy" rating and issued a $19.00 target price on shares of Ondas in a research report on Monday. Zacks Research raised shares of Ondas from a "strong sell" rating to a "hold" rating in a research report on Monday, May 25th. Wall Street Zen lowered shares of Ondas from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 15th. LADENBURG THALM/SH SH upped their price target on shares of Ondas from $21.50 to $22.75 and gave the company a "buy" rating in a research report on Monday, August 17th. Finally, Weiss Ratings lowered Ondas from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 4th. Eight investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $17.18.

Ondas Stock Performance

The firm's 50-day moving average is $7.96 and its 200 day moving average is $9.12. The stock has a market cap of $4.22 billion, a PE ratio of -105.57 and a beta of 2.74.

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

Insider Activity

In related news, Director Richard Cohen sold 7,500 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $8.96, for a total transaction of $67,200.00. Following the completion of the transaction, the director owned 261,836 shares in the company, valued at $2,346,050.56. This trade represents a 2.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.67% of the company's stock.

Institutional Investors Weigh In On Ondas

Several hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd boosted its position in shares of Ondas by 9,274.9% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,466,373 shares of the company's stock worth $33,832,000 after acquiring an additional 3,429,398 shares in the last quarter. RFG Advisory LLC raised its stake in shares of Ondas by 57.0% during the 2nd quarter. RFG Advisory LLC now owns 2,787,202 shares of the company's stock worth $22,967,000 after purchasing an additional 1,012,353 shares during the period. Bank of New York Mellon Corp purchased a new stake in shares of Ondas during the 2nd quarter valued at approximately $13,158,000. Legal & General Group Plc bought a new stake in Ondas during the fourth quarter valued at $14,215,000. Finally, Bank of America Corp DE grew its position in Ondas by 1,443.9% during the first quarter. Bank of America Corp DE now owns 1,404,812 shares of the company's stock valued at $12,700,000 after acquiring an additional 1,313,823 shares during the last quarter. Institutional investors and hedge funds own 37.73% of the company's stock.

Ondas Company Profile

Ondas Holdings Inc NASDAQ: ONDS develops autonomous systems and private wireless network technologies for industrial, government and critical-infrastructure applications. Its businesses are focused on collecting and transmitting data in environments where conventional communications or manually operated systems may be limited.

Through its autonomous systems activities, including American Robotics and other related platforms, Ondas provides autonomous drone solutions for applications such as agriculture, infrastructure inspection, public safety and security.

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