TLDRs:
- Ondas shares fall 4.3% in after-hours trading as auditor change and insider sale notice weigh on sentiment.
- Company replaces Rosenberg Rich Baker Berman with BDO USA, signaling a strategic shift for fiscal 2026.
- Director Ron Stern plans to sell 100,000 shares, raising questions about market confidence.
- Analysts remain bullish, citing strong momentum in the autonomy and military drone segments for 2026.
Shares of Ondas, Inc. (NASDAQ: ONDS) experienced a notable drop of 4.3% in after-hours trading on Wednesday, closing at $12.55.
During the session, the stock fluctuated between $11.94 and $14.29, with roughly 148 million shares traded, reflecting heightened market volatility. Investors’ focus shifted sharply toward two recent regulatory filings, a planned auditor transition for the 2025 annual report and an insider selling notification from a company director. Following a strong rally earlier this month, these developments appear to have tempered investor enthusiasm for the near term.
Auditor Transition Marks Strategic Shift
In a recent Form 8-K filing, Ondas announced that its audit committee approved the departure of Rosenberg Rich Baker Berman as the company’s independent auditor after completing the 2025 audit. The company has appointed BDO USA to handle its fiscal 2026 audits.
The previous auditor had included a “going concern” paragraph in prior reports, highlighting potential funding challenges, though no disagreements were cited. The transition comes at a critical juncture for Ondas as it prepares its full 2025 annual report, expected in March, which could further influence investor sentiment.
Insider Selling Raises Market Questions
Adding to market uncertainty, director Ron Stern submitted a Form 144 notice indicating plans to sell up to 100,000 shares, valued at approximately $1.42 million.
The filing also referenced prior share sales dating back to late November. While insider transactions are common, the timing coinciding with the auditor change and market volatility has drawn investor attention, contributing to after-hours selling pressure.
Analysts Maintain Optimism Despite Volatility
Despite short-term market reactions, analysts continue to express confidence in Ondas’ growth prospects. Oppenheimer maintained an Outperform rating, raising its price target to $16, while Needham kept its Buy rating, nudging the target to $17. H.C. Wainwright took a more aggressive stance, lifting its price target sharply to $25, citing strong momentum in Ondas’ autonomous aerial and robotics operations.
Stifel also raised its price target to $18, emphasizing the company’s differentiated position in military drone markets. Analysts highlight Ondas’ ambitious 2026 revenue forecast of $170 million to $180 million and a pro-forma cash balance exceeding $1.5 billion, which could provide flexibility for growth and strategic initiatives.
Catalysts for 2026
Investors are now watching the audited 2025 annual report and the full-year results update expected in March. Key areas of attention include cash burn, revenue execution, and integration of acquisitions. Ondas’ recent name change from Ondas Holdings Inc to Ondas Inc underscores the company’s evolution, while its $1 billion offering and registered direct equity raise highlight ongoing efforts to strengthen its balance sheet. Comparisons with peers like Red Cat Holdings also underscore potential competition in the defense and security segments, though Ondas’ market positioning remains unique.
With thin trading volumes and sharp after-hours swings, the stock remains sensitive to headlines and filings. Market watchers will likely use Thursday’s session to assess whether these filings represent temporary noise or a longer-term headwind for the stock as 2026 unfolds.
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