New York, July 9, 2026, 14:03 EDT
- Ondas traded up roughly 3.6% this afternoon, with volume topping 51 million shares.
- The stock trades on new dilution numbers now: almost 40 million shares went out at closing, with close to 45 million more set for January.
- Ondas raised its 2026 revenue goal to at least $525 million, up from $390 million, after the DZYNE deal.
Ondas Inc. NASDAQ:ONDS climbed in busy afternoon trading Thursday. Investors shrugged off new dilution tied to the DZYNE Technologies buy and turned attention to whether the defense-drone group can deliver growth to match the stock given to sellers. Shares added 3.6% to $7.79, moving between $7.49 and $7.82 on 51.5 million shares traded.
Right now, volume is the main focus. It’s already run up to about 129% of the 39,999,998 shares issued at DZYNE’s close, and about 61% of the roughly 85 million shares in the deal if you include stock due next year. The stock traded just under the $7.94 per-share value set by the $675 million stock part of the transaction.
Ondas said July 6 it acquired DZYNE for $875.8 million, paying $200 million in cash and issuing about 85 million shares worth roughly $675 million. Alongside the deal, Ondas lifted its 2026 revenue target to at least $525 million from $390 million. The company said DZYNE should bring in $191 million in revenue for 2026 and top $300 million the next year.
| Deal figures investors tracking | Figure | What it implies |
|---|---|---|
| DZYNE deal value | $875.8 mln | Works out to about 4.6x DZYNE’s forecast 2026 sales |
| Cash paid upfront | $200 mln | Just under 25% of the total headline amount |
| Shares in the deal | About 85 mln shares | Investors focused on dilution from this piece |
| Initial shares issued | 39,999,998 | Registered for resale now, some restrictions stay |
| Locked-up shares till Jan. 4, 2027 | 44,999,998 | Held back for six months by trading constraints |
| Ondas 2026 sales target | At least $525 mln | Target jumps 35% from earlier $390 mln guide |
The key now is the market’s reaction to Ondas’ buyout plan. An SEC filing shows Ondas picked up High Point UAS, which is connected to DZYNE, for $200 million cash, nearly 40 million shares up front, and another 45 million shares locked up until Jan. 4, 2027. Sellers also face daily trading caps set at 10% of the day’s volume, a check on fast selling.
The lock-up agreement also has a less-discussed $20 share-price trigger. If Ondas’ 30-day VWAP tops $20 before Jan. 2, 2027, then half the locked-up shares will stay restricted for another six months. Based on Thursday afternoon’s price, the stock would have to jump about 157%—that’s on a spot-price basis. The actual trigger, though, is the 30-day VWAP.
Ondas CEO Eric Brock said, “The character of warfare is changing rapidly,” as the company announced the deal. Brock said DZYNE brings mission-ready systems for long-endurance ISR, counter-drone and autonomous effects. ISR stands for intelligence, surveillance and reconnaissance. Jeff Hull, CEO of Highlander Partners and DZYNE’s majority owner, said most of the sellers’ payment is in Ondas equity since they see long-term value in the merged business. Ondas Inc.
Analysts are mostly positive, but the usual small-cap risk remains: the company still needs to deliver. Stifel kept its Buy and $18 target after the DZYNE news. Investing.com said Needham also kept Buy but lowered its target to $19 after the deal. Same piece noted Lake Street repeated its Buy and stuck with a $19 target following the Cyberhawk deal announcement.
| Afternoon market snapshot | Move | Context |
|---|---|---|
| Ondas NASDAQ:ONDS | +3.6% | Up as traders weigh the DZYNE stock move |
| AeroVironment NASDAQ:AVAV | -4.7% | Stock under pressure for this major defense drone player |
| Red Cat Holdings NASDAQ:RCAT | +2.1% | Small drone stock up |
| Draganfly (NASDAQ:DPRO) | +0.5% | Minor move higher in this smaller drone name |
| iShares U.S. Aerospace & Defense ETF (NYSEARCA:ITA) | +0.2% | Broader defense stocks firmer |
| Invesco QQQ Trust NASDAQ:QQQ | +1.8% | Growth-heavy QQQ lending support |
Peer action was split. Ondas’ move looks more tied to its own capital plans than a broad play on defense drones. AeroVironment Inc. NASDAQ:AVAV dropped 4.7%. Red Cat Holdings Inc. NASDAQ:RCAT added 2.1%, Draganfly Inc. (NASDAQ:DPRO) ticked up 0.5%. The iShares U.S. Aerospace & Defense ETF (NYSEARCA:ITA) edged 0.2% higher, while the Invesco QQQ Trust NASDAQ:QQQ gained 1.8%.
The risk for Ondas is clear. The company has bulked up fast with acquisitions, and now investors face integration risk, defense spending timelines and uncertainty around future share supply. According to the resale prospectus, Ondas won’t get any money from shares sold by DZYNE holders, and it cautions that the stock price could drop if things go wrong. The prospectus also permits stock sales through regular brokers, block trades, hedges and more, as long as they follow the deal’s rules.
Related articles: NASDAQ:ONDS
