What's Going On With Ondas Shares On Friday?

Ondas Inc. (NASDAQ:ONDS) shares are up on Friday as the company navigates a challenging market environment.

• Ondas stock is among today’s top performers. What’s behind ONDS gains?

Significant New Orders

Ondas has received multiple orders totaling around $6 million for dozens of its Sentrycs counter-UAS systems, aimed at enhancing defense and homeland security in the Middle East.

These systems are critical for protecting infrastructure amid escalating regional conflicts.

The orders reflect a growing demand for Ondas’ advanced technological solutions in a region plagued by increasing drone threats.

The company’s Sentrycs systems serve as foundational components for broader counter-UAS programs, supporting defense and homeland security across multiple regions.

“There is strong demand and a growing urgency among governments to find scalable solutions for defending critical infrastructure and strategic assets,” said Eric Brock, chairman and CEO.

“Our cyber-RF counter-drone technology enables operators to detect, identify and mitigate hostile drones at scale, in multiple locations 24/7, without disrupting surrounding communications. As drone threats continue to escalate globally, Ondas is expanding deployments of our counter-UAS technologies as part of a layered defense architecture designed to protect sensitive environments.”

Recent Key Order Wins

This month, the company announced a $20 million purchase order for the development of an autonomous border protection system.

This initial order is part of a multi-year framework and the company expects it to further include development milestones and deployment phases.

Also, the company announced a $10 million strategic investment in and a partnership agreement with World View.

Under the agreement, Ondas and World View will collaborate to combine World View's high-altitude, long-endurance stratospheric balloon systems with Ondas' portfolio of unmanned aircraft systems capabilities.

Stock Performance Overview

Over the past year, Ondas has seen an impressive 1,203.75% increase in its stock price. Currently, the stock is trading at $10.37, which is 2.4% above its 20-day SMA of $10.07 and 11.2% above its 100-day SMA of $9.27. However, it remains 5.5% below the 50-day SMA of $10.92, indicating some recent pullbacks.

Market Indicators

The RSI stands at a neutral 51.01, suggesting no immediate directional bias, while the MACD presents a bullish signal, being above the signal line. This technical setup indicates potential for upward movement, although the stock remains volatile within a broader challenging market context.

Sector Analysis

In the Communication Services sector, where Ondas operates, there has been no change today, maintaining a zero percent gain. This sector is currently ranked second out of 11, showing relative strength in a generally down market. Over the past 30 and 90 days, the sector has seen gains of 1.40% and 1.88%, respectively, indicating a stable performance despite today’s broader market downturn.

Earnings Expectations

The countdown is on: Ondas is set to report earnings in mid-March. With the earnings date fast approaching, here’s what analysts are expecting:

• EPS Estimate: Loss of 4 cents (Up from a loss of 15 cents year-over-year)
• Revenue Estimate: $27.30 million (Up from $4.13 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $13.06. Recent analyst moves include:

• Stifel: Buy (Raises target to $18 as of Jan. 21)
• Lake Street: Buy (Raises target to $19 as of Jan. 20)
• Oppenheimer: Outperform (Raises target to $16 as of Jan. 20)

Market Positioning

Below is the Benzinga Edge scorecard for Ondas, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 99.74) — Ondas is significantly outperforming the broader market in terms of momentum.

The Verdict: Ondas’s Benzinga Edge signal reveals a strong momentum play. While the high Momentum score confirms a robust upward trend, investors should remain cautious of market volatility and sector dynamics.

Top ETF Exposure

• State Street SPDR S&P Kensho New Economies Composite ETF (NYSE:KOMP): 0.81% Weight
• ROBO Global Robotics and Automation Index ETF (NYSE:ROBO): 1.98% Weight
• Invesco Dorsey Wright Technology Momentum ETF (NASDAQ:PTF): 3.94% Weight

Significance: Because Ondas carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

ONDS Price Action: Ondas shares were up 9.72% at $11.51 at publication on Friday, according to Benzinga Pro data.

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