Ondas Inc. (ONDS) is having a strong Monday, with shares surging on the back of a newly announced strategic investment in FPF Defense, a defense tech company focused on autonomous counter-drone systems. The move caps off a period of accelerating defense contract wins for Ondas.
Ondas and RSE Ventures co-led the investment in FPF Defense, which develops the SmartFlak counter-unmanned aerial system. The system uses the Hammerhead autonomous interceptor to target Shahed-class one-way attack drones, addressing a critical cost gap: traditional missile interceptors are far more expensive than the low-cost attack drones they're meant to stop. Financial terms of the transaction were not disclosed.
As part of the deal, FPF Defense will relocate its headquarters to West Palm Beach, Florida, joining Ondas there as both companies work to build out a defense technology ecosystem in the region.
"Ondas is focused on solving the most critical challenges in autonomous and counter-drone warfare, and we uphold the highest standards for the teams we partner with," said Ondas CEO Eric Brock. "FPF cleared that bar immediately with a proven team, a disruptive cost advantage, and a mission-critical capability that the nation requires at scale."
Nasdaq futures were up 1.32% and S&P 500 futures gained 0.81% on Monday morning, providing a generally positive backdrop.
Technical Analysis: Recovery Mode, But Resistance Ahead
Ondas remains in a longer-term recovery phase, but the shorter-term trend has improved. The stock is trading 11.4% below its 50-day simple moving average of $9.07 and 14.5% below its 200-day simple moving average of $9.39. Those levels could act as resistance after the death cross recorded in July, when the 50-day average moved below the 200-day average.
On the plus side, the stock is now trading 7.2% above its 20-day simple moving average of $7.49 and above its 20-day exponential moving average of $7.72, indicating recent buying momentum. The relative strength index (RSI) stands at 49.15, suggesting neutral momentum — not overbought or oversold.
Key technical levels to watch:
- Support: $7.00, a nearby round-number level that could attract buyers.
- Resistance: $8.50, near the 200-day exponential moving average.
Earnings and Analyst Outlook
Ondas is expected to report second-quarter results on August 11. Analysts are expecting a loss of 6 cents per share, compared with a loss of 8 cents a year earlier. Revenue is estimated at $65.8 million, up sharply from $6.27 million a year earlier. The stock trades at a price-to-earnings ratio of 86.8.
Wall Street maintains a Strong Buy consensus with an average price forecast of $18.50. Recent analyst actions include:
- Needham reaffirmed its Buy rating and lowered its price forecast to $19 on July 7.
- Needham maintained its Buy rating and $23 price forecast on May 19.
- Northland Capital Markets maintained its Outperform rating and raised its price forecast to $18 on March 26.
Top ETF Exposure
Ondas carries significant weight in several defense-focused ETFs, meaning inflows or outflows from these funds can force automatic buying or selling of the stock:
- Defiance Drone and Modern Warfare ETF (JEDI): 6.98% Weight
- REX Drone ETF (DRNZ): 11.67% Weight
- Leverage Shares 2X Long ONDS Daily ETF (ONDG): 0.07% Weight
ONDS Stock Price Activity: Ondas shares were up 2.69% at $8.01 during premarket trading on Monday.
