Ondas (NASDAQ:ONDS) Shares Up 8% - Time to Buy?

Key Points

• Ondas shares rose 8% to $6.65 during Tuesday trading, though volume was 44% below the average session level. The stock remains below its 50-day and 200-day moving averages of $7.42 and $9.24.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating from 12 analysts and an average price target of $16.89. Recent targets range from $18.00 to $22.75, although one firm downgraded the stock to “strong sell.”
• The company reported quarterly revenue of $83.77 million, exceeding estimates, but missed earnings expectations with a loss of $0.19 per share versus a forecasted loss of $0.09. Insiders have recently sold shares, while institutional investors own 37.73% of the stock.

Ondas Holdings Inc. (NASDAQ:ONDS - Get Free Report)'s stock price shot up 8% during trading on Tuesday. The company traded as high as $6.69 and last traded at $6.65. 43,996,348 shares changed hands during trading, a decline of 44% from the average session volume of 78,677,523 shares. The stock had previously closed at $6.16.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on ONDS. Oppenheimer raised their target price on Ondas from $16.00 to $18.00 and gave the company an "outperform" rating in a report on Friday, August 14th. Needham & Company LLC reiterated a "buy" rating and set a $19.00 price target on shares of Ondas in a research note on Monday, September 14th. Wall Street Zen cut shares of Ondas from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 15th. Roth Capital reissued a "buy" rating on shares of Ondas in a research note on Tuesday, August 18th. Finally, LADENBURG THALM/SH SH lifted their price objective on shares of Ondas from $21.50 to $22.75 and gave the company a "buy" rating in a report on Monday, August 17th. Ten equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $16.89.

Ondas Stock Performance

The company has a market capitalization of $3.87 billion, a PE ratio of -95.00 and a beta of 2.92. The stock's 50-day simple moving average is $7.42 and its 200 day simple moving average is $9.24.

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

Insider Activity

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

Institutional Investors Weigh In On Ondas

A number of hedge funds and other institutional investors have recently bought and sold shares of ONDS. Salem Investment Counselors Inc. purchased a new stake in Ondas during the third quarter worth about $3,075,000. The Manufacturers Life Insurance Company increased its holdings in Ondas by 664.0% in the first quarter. The Manufacturers Life Insurance Company now owns 129,481 shares of the company's stock valued at $1,171,000 after buying an additional 112,534 shares in the last quarter. CI Investments Inc. purchased a new position in Ondas in the first quarter valued at about $4,255,000. Royal Bank of Canada lifted its position in shares of Ondas by 160.1% during the 1st quarter. Royal Bank of Canada now owns 384,656 shares of the company's stock valued at $3,477,000 after acquiring an additional 236,782 shares during the period. Finally, Oddo BHF Asset Management Sas purchased a new stake in shares of Ondas during the 1st quarter worth approximately $5,000,000. Institutional investors and hedge funds own 37.73% of the company's stock.

Ondas Company Profile

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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