Why Is ONDS Stock Falling Today?

• On June 2, CEO Eric Brock sold nearly 2.4 million shares worth more than $32 million to satisfy certain tax obligations.
• Ondas’ unit signed a $4.8 million contract with the U.S. Naval Forces Southern Command.
• The company has added $110 million worth of orders to its backlog in the second quarter.

Ondas (ONDS) found itself in the spotlight on Wednesday after the company filed a supplement to its statement indicating a potential resale of shares by its selling shareholders, a regulatory filing that stirred debate among investors about its impact on the stock’s near-term trajectory.

ONDS shares were down more than 14% at the time of writing.

ONDS Files Resale Supplement

According to an SEC filing on Wednesday, Ondas registered 2.1 million shares of common stock that were previously issued to certain investors under a purchase agreement. The filing allows investors to resell the shares from time to time in the public market or through private transactions.

The filing follows a June 2 transaction in which CEO Eric Brock sold nearly 2.4 million shares worth more than $32 million to satisfy certain tax obligations.

Here’s What Retail Thinks About ONDS

Despite the slump, retail sentiment for ONDS trended in the ‘extremely bullish’ territory, amid ‘extremely high’ message volumes.

One user said the resale was “not a good sign” and expects the stock to fall back below $10.

Another user said the dilution was “far too aggressive,” and revenue growth still needs to improve significantly to justify its current valuation.

However, a bullish trader highlighted the company’s raised full-year 2026 outlook, along with the government’s strong backing for the defense sector, as key growth prospects.

ONDS’ Backlog Continues To Grow

On Tuesday, Ondas’ unit signed a $4.8 million, three-month contract with the U.S. Naval Forces Southern Command to deploy high-altitude balloon systems and provide operational support across the Eastern Pacific and Caribbean regions.

The company ended the first quarter with a backlog of $457 million and has continued to see strong order activity, adding $30 million in new bookings during May, bringing total Q2 orders to $110 million. Ondas recently raised its FY2026 revenue target to $390 million, up about 670% from FY2025 levels.

The stock has gained around 42% so far this year.

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