Ondas Inc. (NASDAQ:ONDS) enters Monday's trading session after a volatile holiday-shortened week, with the stock declining 6.44% to close at $7.41 on Thursday, July 2. The stock edged up slightly to $7.45 in after-hours trading. The Nasdaq was closed on Friday, July 3, in observance of Independence Day, and will resume regular trading hours from 9:30 a.m. to 4:00 p.m. ET on Monday.
Trading volume over the four sessions ending July 2 reached approximately 315.5 million shares, representing roughly 60% of the company's shares outstanding, based on MarketWatch data. This surge in activity comes as short interest stood at 167.52 million shares as of June 15, accounting for about 32.7% of the float, according to Nasdaq and Fintel data. The heavy volume suggests significant investor repositioning, particularly given the crowded short base.
On June 26, Ondas filed an SEC registration for the resale of 3.378 million shares by certain stockholders, with 3.285 million shares tied to the Omnisys acquisition and 92,388 shares related to World View. The company will not receive any proceeds from these sales. This filing represents just 1.1% of last week's trading volume, indicating that the broader market dynamics are driving the stock's movement more than the resale registration.
Fundamentally, Ondas has been active on the operational front. On June 22, the company announced it had secured over $40 million in June orders for autonomous defense systems, bringing total second-quarter order activity to more than $150 million. Chairman and CEO Eric Brock emphasized that counter-unmanned aerial systems (counter-UAS) remain "an urgent priority" for governments worldwide. Oshri Lugassy, co-CEO of Ondas Autonomous Systems, highlighted that loitering munition systems are "becoming a major growth area."
Further bolstering its defense portfolio, Ondas' Sentrycs division disclosed on June 23 a collaboration with Lockheed Martin (NYSE:LMT) to integrate its Cyber-over-RF technology into Lockheed's Sanctum counter-drone system. Matt Bahnemann, a senior manager at Lockheed, described Sanctum as a "modular, open" counter-UAS platform, noting that partnering with Sentrycs provides additional layered response capabilities.
In a strategic expansion move, Ondas announced in June its intention to acquire Cyberhawk in a deal valued at approximately $125 million, with 95% of the consideration in cash. Cyberhawk is projected to generate over $45 million in revenue for the fiscal year ending March 2027, with about 95% expected to be recurring. The company also reported a $95 million backlog. Chris Fleming, Cyberhawk's founder and CEO, expressed enthusiasm about the combination.
Despite the positive news flow, valuation remains a concern. With a market capitalization of $3.88 billion as of Thursday's close, Ondas trades at roughly 10 times its full-year 2026 revenue target of at least $390 million and about 8.5 times its pro forma backlog of $457 million at the end of the first quarter. Management has pointed to the backlog as providing "strong visibility" into the 2026 revenue goal. The company reported first-quarter revenue of $50.1 million, a more than tenfold increase year-over-year, and ended March with $1.48 billion in cash, cash equivalents, restricted cash, and short-term investments.
Looking ahead, Ondas has no scheduled investor relations events for the upcoming week. Traders will be closely monitoring Monday's volume to see if it reverts toward the 65-day average of 67.98 million shares. Any new filings related to orders, strategic deals, or share count changes could significantly influence the stock's near-term trajectory.
