Ondas Expands Military Tech Pipeline with $70M in New Autonomous Orders

Ondas Inc. (NASDAQ:ONDS) shares are trading higher by more than 7% on Wednesday as the company secured $70 million in new orders across its defense and autonomous technology platform.

This positive movement comes despite a mixed day for the broader market, where the Technology sector is currently down 0.62%, ranking as the worst-performing sector.

• Ondas stock is among today’s top performers. Why is ONDS stock surging?

$70 Million In New Orders

Ondas disclosed that it has secured $70 million in new orders over the past four weeks, reflecting strong demand for its autonomous defense systems.

The orders span various technology segments, including unmanned ground systems and intelligence, surveillance and reconnaissance (ISR) systems.

The new order includes a recent $6.9 million contract from the Australian Department of Defence for its DTIM Single Operator Counter-sUAS Kits.

ONDS Technical Outlook: Key Moving Averages and Momentum

From a technical standpoint, Ondas is currently trading at $8.22, which is 9.6% above its 20-day simple moving average (SMA) of $7.49. However, it remains 10.1% below its 50-day SMA of $9.13, indicating a bearish trend as the 20-day SMA is below the 50-day SMA, suggesting potential resistance ahead.

The Relative Strength Index (RSI) is currently at 53.02, indicating a neutral momentum state, suggesting the stock is neither overbought nor oversold at this time. This positioning could imply there is room for further upward movement if buying pressure increases.

ONDS Outperforms As Technology Sector Slips

Ondas is outperforming its sector, as it has gained more than 7% today while the Technology sector has declined by 0.62%. This divergence highlights the strength of Ondas’ recent orders and market position, especially as the sector has struggled over the past 30 days, down 6.34%, while showing a positive trend over the last 90 days with a gain of 15.48%.

Despite the overall weakness in the Technology sector, Ondas’ strong order flow indicates a positive outlook for the company, suggesting that it is well-positioned to capitalize on growing demand for autonomous defense technologies.

What Ondas (ONDS) Does: Networks and Autonomous Systems

Ondas designs, develops, manufactures, sells and supports FullMAX Software Defined Radio (SDR) technology in the U.S., Israel and India. The company operates in two business segments: Ondas Networks and Ondas Autonomous Systems, generating maximum revenue from Ondas Autonomous Systems through the sales of the Optimus system and related services.

ONDS Earnings Preview and Analyst Price Targets

Looking further out, the next major catalyst for the stock arrives with the Aug. 11 (estimated) earnings report.

• EPS Estimate: Loss of 6 cents (Up from loss of 8 cents)
• Revenue Estimate: $65.80 million (Up from $6.27 million)

Analyst Consensus & Recent Actions: The stock carries a strong Buy rating with an average price target of $18.50. Recent analyst moves include:

• Needham: Buy (Lowers target to $19 on July 7)
• Needham: Buy (Maintains target to $23 on May 19)
• Northland Capital Markets: Outperform (Raises target to $18 on March 26)

How Ondas (ONDS) Ranks On Momentum and Value

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

• Momentum: Bullish (Score: 94.9) — Stock is outperforming the broader market.
• Value: Weak (Score: 11.85) — Trading at a steep premium relative to peers.

The Verdict: Ondas’s Benzinga Edge signal reveals a momentum-driven story, indicating strong performance in the current market environment. However, the low value score suggests that it may be trading at a premium compared to its peers, which could warrant caution for value-focused investors.

ONDS ETF Exposure: Funds With the Biggest Weights

• Defiance Drone and Modern Warfare ETF (NYSE:JEDI): 8.23% Weight
• REX Drone ETF (NASDAQ:DRNZ): 11.67% Weight
• Leverage Shares 2X Long ONDS Daily ETF (NASDAQ:ONDG): 0.07% Weight

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

ONDS Stock Price Today: Shares Rise On Order News

ONDS Stock Price Activity: Ondas shares were up 10.31% at $8.45 at the time of publication on Wednesday, according to Benzinga Pro data.

Photo via Shutterstock