Ondas Inc. (NASDAQ:ONDS) is navigating a pivotal moment as its shares prepare to open Monday following a period of exceptionally heavy trading. The stock was indicated at $7.60 before the bell, up 2.6% from its last close on July 2, when it fell 6.4% to $7.41. This comes as U.S. index futures traded higher premarket, led by technology stocks, according to Reuters.
The most striking aspect of recent activity is the sheer volume. From June 29 through July 2, approximately 312.1 million shares changed hands, representing nearly 60% of the 523.16 million shares outstanding. This volume is 1.86 times the reported short interest of 167.52 million shares, which itself stands at roughly 32% of the float.
The trading surge frames a resale registration filed on June 26 for 3.38 million shares, primarily tied to Ondas's acquisition of Omnisys. The filing stipulates that selling stockholders will not receive any proceeds from the resales, and includes daily volume limits of 15% for Omnisys holders and 5% for World View holders over a six-month period after the close.
Ondas's share count has also shifted. The company reported 469.1 million common shares outstanding as of March 31 in its Q1 results, while Barron's now shows 523.16 million—a difference of 54 million shares, or about 11.5%, not accounting for any more recent updates.
Despite the trading pressure, Ondas continues to find support from robust order flow. The company announced on June 22 that it secured over $40 million in new orders in June, pushing its Q2 total above $150 million. CEO Eric Brock attributed this to "increasing demand" for autonomous defense products, while Oshri Lugassy, co-CEO of Ondas Autonomous Systems, emphasized that counter-UAS capabilities represent "one of the most urgent requirements" in the defense sector.
The company's financial trajectory remains ambitious. Ondas reported Q1 revenue of $50.1 million, a more than tenfold increase year-over-year, and lifted its 2026 revenue target to at least $390 million. Pro forma backlog stood at $457 million, which Brock said provides "visibility into our 2026 targets."
Ondas is also pursuing growth through acquisitions, most recently agreeing to pay approximately $125 million for Cyberhawk, with 95% of the purchase price in cash. Cyberhawk is expected to generate over $45 million in revenue for the fiscal year ending March 2027, with 95% of that recurring and a backlog of $95 million. CEO Chris Fleming noted the deal will accelerate drone-enabled inspection while reducing risk.
On the defense front, Ondas's Sentrycs unit is integrating its Cyber-over-RF technology into Lockheed Martin's Sanctum counter-UAS platform. Matt Bahnemann, senior manager at Lockheed, said the partnership "expands the layered sensing and response options" for operators.
Sell-side analysts remain bullish, with Barron's reporting an average price target of $20.13 from nine ratings, well above the July 2 close. However, with short interest at 32.7% of the float, Monday's open will be a critical test of positioning against the backdrop of drone news and heavy volume.
