Ondas Holdings (NASDAQ:ONDS) saw its stock decline 3.88% on Wednesday, closing at $7.92 after trading between $7.85 and $8.44 during the session. The drop came on heavy volume of 88.57 million shares, which was 131% of the company's 65-day average trading volume. In premarket trading on Thursday at 5:55 a.m. EDT, the stock was at $7.96, up 0.51%, ahead of the regular Nasdaq open at 9:30 a.m. EDT. U.S. financial markets will be closed on Friday, July 3, for the Independence Day holiday.
Short interest in Ondas remains elevated, with 167.52 million shares sold short as of June 15, representing 32.70% of the float. This level of short interest makes Ondas a heavily crowded short play, particularly given its status as a defense drone stock. Wednesday's trading volume was approximately 53% of the total short interest, indicating significant activity from both bulls and bears.
Adding to the supply dynamics, a June 26 SEC prospectus supplement registered 3,378,084 shares for resale by stockholders linked to the Omnisys and World View acquisitions. The filing notes that proceeds from these sales will not go to Ondas. The resale shares are subject to trading restrictions: Omnisys sellers are limited to selling up to 15% of the 10-day average daily volume per day, while some World View sellers have a 5% daily cap for six months. The block represents just 0.64% of the 526.54 million shares outstanding, or roughly 3.8% of Wednesday's trading volume.
Ondas has a market capitalization of $4.14 billion, which is approximately 10.6 times its 2026 revenue target of at least $390 million. The company's pro forma backlog stands at $457 million, providing some visibility into future revenue. In Q1 2026, Ondas reported revenue of $50.1 million, though it posted an adjusted EBITDA loss of $10.9 million.
Operationally, Ondas has been active in the defense sector. The company announced over $40 million in June orders for autonomous defense technologies, bringing second-quarter orders to more than $150 million. CEO Eric Brock characterized the June orders as evidence of “increasing demand for autonomous defense technologies.” Co-CEO Oshri Lugassy emphasized that “C-UAS remains one of the most urgent requirements.”
Ondas also recently disclosed a collaboration with Lockheed Martin (NYSE:LMT) through its Sentrycs business. The partnership integrates Sentrycs’ Cyber-over-RF technology into Lockheed’s Sanctum counter-drone platform. Lockheed’s senior program management manager, Matt Bahnemann, noted that the technology adds more “layered sensing and response options.”
On the M&A front, Ondas announced on June 18 its plan to acquire Cyberhawk for approximately $125 million, with about 95% of the purchase price to be paid in cash. Cyberhawk brings over 300 customers, projected revenue exceeding $45 million for the year ending March 2027, and a $95 million order backlog. Cyberhawk CEO Chris Fleming stated that the combination could “fundamentally reduce risk and human exposure” for clients.
The elevated short interest and the pending resale of acquisition shares create a dynamic environment for Ondas shares. With a third of its float sold short and fresh supply entering the market under restrictions, the stock remains sensitive to news flow and trading volume. Investors will be watching closely for any updates on defense orders, backlog conversion, and the integration of recent acquisitions.
