Ondas Inc. (NASDAQ:ONDS) and RSE Ventures have co-led a strategic investment in FPF Defense, a defense technology company developing autonomous counter-drone systems, the companies announced Friday. Financial terms were not disclosed.

The investment will support development of FPF’s SmartFlak counter-unmanned aerial system, which uses the Hammerhead autonomous interceptor to target Shahed-class one-way attack drones. FPF said the system is designed to address the cost gap between low-cost attack drones and traditional missile interceptors.

As part of the deal, FPF will relocate its headquarters to West Palm Beach, Florida, joining Ondas as the companies work to expand the region’s defense technology ecosystem.

“Ondas is focused on solving the most critical challenges in autonomous and counter-drone warfare, and we uphold the highest standards for the teams we partner with,” Ondas CEO Eric Brock said. “FPF cleared that bar immediately with a proven team, a disruptive cost advantage, and a mission-critical capability that the nation requires at scale.”

FPF is led by former Acting Secretary of Defense Christopher C. Miller. The company said it will use the funding to accelerate development of its Hammerhead interceptor and SmartFlak system, expand engineering operations and establish an NDAA-compliant U.S. manufacturing supply chain.

Stock Performance And Technical Analysis

Ondas stock edged lower by less than 0.5% on Friday. Meanwhile, the Nasdaq fell 0.32%, while the S&P 500 rose 0.48%.

Ondas traded at $7.92. That is 5.9% above its 20-day simple moving average of $7.50. However, the stock remains 12.4% below its 50-day simple moving average of $9.07. This setup points to a short-term rebound within a weaker intermediate trend.

The longer-term outlook remains cautious. The 50-day moving average is still below the 200-day moving average. A death cross formed in July, reinforcing the bearish trend.

The relative strength index stood at 50.74. That signals neutral momentum. As a result, the stock could continue trading in a range until a stronger trend emerges.

The next resistance level is near $8.50. That level aligns with the 200-day exponential moving average. Meanwhile, initial support sits around $7.00.

Despite gaining more than 271% over the past 12 months, ONDS remains well below its 52-week high of $15.28, reached in January.

Earnings And Analyst Outlook

Ondas is expected to report quarterly results on Aug. 11. Analysts expect a loss of 6 cents per share, compared with a loss of 8 cents a year earlier. Revenue is projected to rise to $65.8 million from $6.27 million.

The stock carries a consensus Strong Buy rating with an average analyst price forecast of $18.50. Recent analyst actions include Needham lowering its price forecast to $19 on July 7 while maintaining a Buy rating.

Needham reiterated a Buy rating with a $23 price forecast on May 19. Northland Capital Markets raised its price forecast to $18 on March 26 while maintaining an Outperform rating.

The Funds Most Invested In Ondas

Ondas is a significant holding in several thematic exchange-traded funds. It represents a 6.98% weighting in the Defiance Drone and Modern Warfare ETF (NYSE:JEDI) and an 11.67% weighting in the REX Drone ETF (NASDAQ:DRNZ). It also accounts for 0.07% of the Leverage Shares 2X Long ONDS Daily ETF (NASDAQ:ONDG).

Large inflows or outflows in these funds could influence trading activity in ONDS shares.

ONDS Stock Price Activity: Ondas shares were down 0.19% at $7.92 at the time of publication on Friday, according to Benzinga Pro data.

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