Traders Buy Large Volume of Ondas Call Options (NASDAQ:ONDS)

Key Points

• Unusual bullish options activity: Investors purchased 299,121 ONDS call options, about 52% above typical volume, signaling increased speculative interest in the stock.
• Growth catalysts remain strong: Ondas reported second-quarter revenue of approximately $83.8 million, raised its 2026 revenue outlook to $550 million, and cited a $757 million backlog alongside a new Israeli defense-drone contract.
• Risks remain significant: Shares fell to $8.91 despite the growth outlook, while the company faces sizable losses, a high valuation, roughly 40% short interest and recent insider selling. Analysts maintain a “Moderate Buy” consensus with an average price target of $16.33.

Ondas Holdings Inc. (NASDAQ:ONDS - Get Free Report) was the target of some unusual options trading activity on Thursday. Stock investors acquired 299,121 call options on the company. This is an increase of approximately 52% compared to the typical volume of 196,580 call options.

Ondas Price Performance

Shares of NASDAQ ONDS traded down $0.86 during midday trading on Thursday, hitting $8.91. 123,326,108 shares of the company's stock were exchanged, compared to its average volume of 85,506,867. The firm's fifty day simple moving average is $8.29 and its 200-day simple moving average is $9.52. Ondas has a twelve month low of $3.20 and a twelve month high of $15.28. The company has a market cap of $5.08 billion, a PE ratio of 222.75 and a beta of 2.72.

Key Headlines Impacting Ondas

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Raised outlook and strong backlog: Ondas reported second-quarter revenue of approximately $83.8 million, above estimates near $68 million, and raised its 2026 revenue outlook to $550 million. Management also highlighted a backlog of roughly $757 million and expects sustained demand for its drone and counter-drone systems. ONDAS Stock Rises on a Q2 Earnings Report, a $757 Million Backlog, and Raised Guidance
• Positive Sentiment: Israeli defense opportunity: Ondas won a multimillion-dollar Israeli defense tender for next-generation tactical attack drones, expanding its international customer base and supporting its autonomous defense strategy. Ondas Wins Israeli Defense Tender for Next-Gen Tactical Attack Drones
• Positive Sentiment: Analyst and trading support: Roth Capital initiated coverage with a “strong-buy” rating, while traders purchased about 299,121 call options—roughly 52% above typical call volume—indicating increased speculative bullish interest. Roth Capital Begins Coverage on Ondas
• Neutral Sentiment: High short interest: Short interest reportedly stands near 40%. This creates the possibility of a short squeeze if positive contract and earnings news continues, but it also signals significant skepticism among investors. Ondas Stock in Focus as Short Interest Hits 40% Ahead of Earnings
• Negative Sentiment: Profitability remains the key problem: Although adjusted results beat some consensus estimates, reports highlighted a sizable adjusted EBITDA loss of approximately $50.6 million. Another earnings report cited a GAAP loss wider than analysts expected, making the revenue growth less compelling for investors focused on near-term profitability. Trends Making Noise on Wall Street Today
• Negative Sentiment: Valuation and expectations: With a high earnings multiple, negative returns on equity and a recent rally of more than 70% from its yearly low, ONDS had elevated expectations heading into earnings. The large post-report decline suggests investors are taking profits and demanding clearer evidence that the backlog will convert into profitable cash flow. Ondas Drops After Earnings

Wall Street Analysts Forecast Growth

ONDS has been the topic of a number of research analyst reports. Weiss Ratings lowered Ondas from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 4th. Roth Capital began coverage on shares of Ondas in a research note on Tuesday. They set a "buy" rating and a $13.00 target price for the company. Zacks Research upgraded shares of Ondas from a "strong sell" rating to a "hold" rating in a report on Monday, May 25th. Needham & Company LLC decreased their target price on shares of Ondas from $23.00 to $19.00 and set a "buy" rating for the company in a research report on Tuesday, July 7th. Finally, Wall Street Zen downgraded Ondas from a "hold" rating to a "sell" rating in a report on Sunday, May 24th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Ondas has a consensus rating of "Moderate Buy" and an average price target of $16.33.

Insider Buying and Selling at Ondas

In other news, CEO Eric A. Brock sold 2,378,245 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $13.43, for a total transaction of $31,939,830.35. Following the completion of the sale, the chief executive officer owned 3,583,010 shares of the company's stock, valued at approximately $48,119,824.30. This represents a 39.90% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Randy Seidl sold 10,000 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $9.83, for a total value of $98,300.00. Following the completion of the sale, the director owned 295,504 shares of the company's stock, valued at $2,904,804.32. The trade was a 3.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 2,395,745 shares of company stock worth $32,109,380. Insiders own 1.67% of the company's stock.

Institutional Trading of Ondas

Several hedge funds and other institutional investors have recently bought and sold shares of ONDS. Beaird Harris Wealth Management LLC raised its position in Ondas by 3.8% in the fourth quarter. Beaird Harris Wealth Management LLC now owns 27,250 shares of the company's stock valued at $266,000 after purchasing an additional 1,000 shares during the period. State of Wyoming increased its holdings in shares of Ondas by 31.5% in the 1st quarter. State of Wyoming now owns 6,809 shares of the company's stock worth $62,000 after acquiring an additional 1,631 shares during the period. NFSG Corp raised its stake in Ondas by 200.0% during the 1st quarter. NFSG Corp now owns 3,000 shares of the company's stock valued at $27,000 after acquiring an additional 2,000 shares in the last quarter. Steadtrust LLC lifted its stake in shares of Ondas by 10.3% in the 2nd quarter. Steadtrust LLC now owns 21,473 shares of the company's stock worth $177,000 after acquiring an additional 2,000 shares during the period. Finally, IFP Advisors Inc grew its holdings in Ondas by 231.4% during the third quarter. IFP Advisors Inc now owns 4,142 shares of the company's stock worth $32,000 after acquiring an additional 2,892 shares during the period. 37.73% of the stock is owned by hedge funds and other institutional investors.

Ondas Company Profile

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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