Ondas Holdings (NASDAQ:ONDS) saw its stock price rise 5.53% on Monday, closing at $7.82, as the company finalized its acquisition of DZYNE Technologies. The stock was trading near $7.84 in early pre-market activity on Tuesday, reflecting continued investor interest in the defense technology firm's growth trajectory.
The all-stock deal, valued at $875.8 million, includes approximately 85 million Ondas shares worth roughly $675 million, along with $200 million in cash. According to an SEC filing, 45 million of those shares are subject to a six-month lock-up period, and each seller can only sell up to their portion of 10% of daily trading volume. Based on Monday's volume of 73.39 million shares, this limits daily sales to about 7.3 million shares before splits among sellers, a key consideration given Ondas' high short interest of 167.52 million shares, or 32.70% of the float.
Revenue Guidance Boost
Ondas raised its 2026 revenue target to at least $525 million, up from the previous $390 million minimum. The updated guidance incorporates contributions from both DZYNE and Omnisys, which was acquired on May 21, but excludes Cyberhawk, which Ondas plans to close in the third quarter. DZYNE is forecast to generate $191 million in revenue in 2026, rising above $300 million in 2027, with EBITDA margins targeting the mid-teens in 2027 and mid-20% range by 2028.
Eric Brock, Chairman and CEO of Ondas, emphasized that the military edge now belongs to companies capable of deploying autonomous systems at scale. Jeff Hull, President and CEO of Highlander Partners, DZYNE's majority owner, noted that sellers opted for Ondas equity, signaling confidence in the merged entity's long-term value.
Analyst Sentiment
Despite the stock's current level, analysts remain bullish. The average 12-month price target stands at $20.13, with a range of $16 to $25, according to S&P Global data. Eight analysts rate the stock a "Strong Buy." However, Needham's Austin Bohlig recently lowered his target from $23 to $19, and Lake Street's Max Michaelis set a target of $19 on July 6.
Volume on Monday surged to 73.39 million shares, exceeding the 65-day average of 68.20 million, while the S&P 500 gained 0.72% on the day.
Market Context
The deal's structure and share lock-up provisions are critical for investors, given the stock's high short interest and rapidly changing share count. DZYNE's backlog stood at $111 million as of June 30, with a three-year pipeline exceeding $1.5 billion. The company plans to ship up to eight ULTRA systems in 2026, up to 20 in 2027, and remains on track to deliver over 750 IonStrike systems this year.
As Ondas integrates these acquisitions, the market will closely monitor how quickly the new shares become available and whether the company can meet its ambitious revenue goals.
