Ondas Holdings Inc. (ONDS) saw its shares plummet 5.09% during intraday trading on Friday, a notable decline that occurred despite the company announcing significant new business.
The autonomous technology company reported securing more than $30 million in new orders in May alone, bringing its total orders for the second quarter to date to over $110 million. These orders span its defense, security, and autonomous systems platforms, contributing to a growing backlog.
The drop appears to be driven by profit-taking from investors following a substantial recent rally in the stock. According to related news, Ondas shares had surged 44.3% over the past week and 26.4% over the past month, partly fueled by policy discussions around potential Pentagon support for domestic drone makers under a "Drone Dominance" initiative. With the stock trading at elevated levels, the positive order news may have served as a catalyst for some investors to lock in gains. Additional considerations for the sell-off include concerns over potential shareholder dilution from a recently filed shelf registration for approximately $29 million worth of shares, and the competitive risks associated with any future Pentagon funding decisions.