ONDS Stock Rises Overnight: Ondas Scores New ‘Digital Bat’ Drones Order Ahead Of Earnings

• Ondas is moving its Digital Bat drone program closer to production. 
• Ondas expects ARAN Defense's Israeli facilities to support large-scale drone manufacturing. 
• High short interest could fuel a rally if Ondas beats Q3 earnings estimates. 

Ondas Inc. (ONDS) stock climbed overnight as the company secured a new purchase order under its “Digital Bat” program to develop and manufacture low-cost tactical attack drones. The order boosts the program toward production as Ondas prepares to expand manufacturing capacity through its planned ARAN Defense acquisition. 

Ondas stock traded 2.3% higher overnight Tuesday. The drone platform provider is scheduled to report its third-quarter (Q3) earnings on November 12.  

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Ondas Advances Digital Bat Toward Production

Ondas’ latest order advances Digital Bat from development toward manufacturing. The company intends to form dedicated production facilities and build the capacity to supply domestic and international defense customers. 

The Digital Bat program is an Israeli military project to develop low-cost, autonomous attack drones for soldiers on the battlefield. In August, Ondas said its subsidiary, Airobotics, was chosen by Israel's Ministry of Defense to take part in the project.

The initiative also supports Ondas’ broader ambition to become a vertically integrated defense technology provider, combining drone platforms, artificial intelligence, software and manufacturing under one business.

ARAN Defense Deal Could Boost Ondas’ Manufacturing

Ondas’ planned acquisition of ARAN Defense is expected to play a central role in its production strategy. Announced in August, the proposed transaction would give Ondas access to approximately 4,400 square meters of engineering and manufacturing facilities in Israel.

Ondas' Airobotics business will oversee Digital Bat's drone development, autonomous flight technology, software and system integration. ARAN Defense is expected to provide manufacturing and industrial production infrastructure. 

"Manufacturing thousands of affordable autonomous systems requires much more than advanced drone technology," said Oshri Lugassy, Co-CEO of Ondas Autonomous Systems.

Ondas’ Investors Watch Short Squeeze Possibility 

Ondas investors are watching the stock's high short interest, which has stayed close to 40% since August, according to Koyfin data. This could trigger a sharp rally if the company delivers better-than-expected Q3 results.

Ondas sees Q3 revenue of $140 million – $155 million, up from the $83.8 million reported in Q2. Its Ondas Autonomous Systems division is expected to drive much of this growth, supported by acquisitions and a strong order pipeline.

ONDS Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained ‘neutral’. 

A user said, “The price action is horrible but the news is phenomenal, especially for the long term. Ondas is setting itself up to be a big player, which you can't say about a lof of these other g****** a** publicly held drone companies.” 

Another user said, “Given that 44.34% of the ONDS public float is heavily shorted, any sudden fundamental breakout driven by their massive tactical drone manufacturing lines could send the equity soaring uncontrollably.”

ONDS stock has crashed 42% year-to-date. 

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