Ondas Inc. (NASDAQ:ONDS) shares are up on Monday after the company announced that it agreed to acquire DZYNE Technologies for around $875.8 million.
The rally also comes amid a broader risk-on session, with S&P 500 futures rising about 0.5%.
Under the agreement, DZYNE shareholders will receive $200 million in cash and approximately 85 million Ondas shares valued at about $675 million, with more than half of those shares (45 million) subject to a six-month lock-up.
Upon closing, DZYNE shareholders, led by Highlander, are expected to own approximately 13.8% of Ondas’ outstanding equity.
Ondas ended the first quarter with approximately $1.48 billion in cash, restricted cash and short-term investments.
Outlook Raised
The acquisition of DZYNE Technologies expands Ondas’ capabilities in multi-domain ISR, counter-UAS, and autonomous systems, with the aim of strengthening its financial profile and operational leverage.
The formation of Ondas Sentinel, a new division, will integrate these technologies to support larger defense programs, reflecting a strategic alignment with current defense modernization priorities.
In particular, DZYNE expects to generate $191 million in revenue in 2026 and more than $300 million in 2027, with revenue growth projected at over 80% CAGR from 2025 to 2028. The company is also expected to turn EBITDA positive in 2026, with margins targeted in the mid-teens in 2027 and rising to the mid-20% range by 2028.
Meanwhile, Ondas now expects at least $525 million in revenue for 2026, up from a prior target of at least $390 million.
The updated outlook includes contributions from both DZYNE and the recently completed Omnisys acquisition (closed May 21, 2026), but excludes any impact from Cyberhawk, which is expected to close in the third quarter of 2026.
ONDS Technical Outlook: Trend, Momentum And Key Levels
Currently, Ondas is trading at $7.50, which is 16.8% below its 20-day simple moving average (SMA) of $9.01 and 23.8% below its 50-day SMA of $9.82. The stock has shown a remarkable 12-month performance of 323.43%, but it is currently facing bearish signals, with the 20-day SMA below the 50-day SMA.
Momentum analysis via the MACD indicates that the stock is experiencing fading momentum, as it remains below its signal line. This suggests that unless the stock can reclaim that baseline, the upward pressure may continue to cool.
- Key Resistance: $8.50 — a nearby level where rebounds can stall, aligning with the 50-day SMA.
- Key Support: $7.50 — a critical level where buyers previously stepped in, reflecting recent trading activity.
ONDS Earnings Preview And Analyst Price Targets
Ondas is slated to provide its next financial update on August 11, 2026 (estimated).
- EPS Estimate: Loss of 6 cents (Up from Loss of 8 cents)
- Revenue Estimate: $65.8 million (Up from $6.27 million)
- Valuation: P/E of 82.3x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $19.83. Recent analyst moves include:
- Needham: Buy (Maintains Target to $23.00) (May 19)
- Northland Capital Markets: Outperform (Raises Target to $18.00) (March 26)
- Needham: Buy (Maintains Target to $23.00) (March 25)
Ondas (ONDS) Benzinga Edge Rankings: Momentum Vs Value
Below is the Benzinga Edge scorecard for Ondas, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 95.8) — Stock is outperforming the broader market.
- Value: Weak (Score: 13.46) — Trading at a steep premium relative to peers.
The Verdict: Ondas’s Benzinga Edge signal reveals a momentum-driven story, but the weak value score indicates that the stock is trading at a premium compared to its peers. Investors should monitor the balance between growth potential and valuation as the company integrates its new acquisition.
ONDS ETF Exposure: Funds With The Biggest Weights
- SPDR S&P Telecom ETF (NYSE:XTL): 4.27% Weight
- Defiance Drone and Modern Warfare ETF (NYSE:JEDI): 8.23% Weight
- REX Drone ETF (NASDAQ:DRNZ): 11.67% Weight
Significance: Because ONDS carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
ONDS Stock Price Activity: Ondas’ stock price is up 1.62%, trading at around $7.53 per share, at last check on Monday, according to Benzinga Pro data.
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