Insiders Of Rekor Systems Reap Rewards After Their Investment Jumps Another US$523k

Rekor Systems, Inc. (NASDAQ:REKR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 31% resulting in a US$44m addition to the company’s market value. In other words, the original US$1.20m purchase is now worth US$1.72m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Rekor Systems

Rekor Systems Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Founder & Executive Chairman Robert Berman for US$980k worth of shares, at about US$1.40 per share. Even though the purchase was made at a significantly lower price than the recent price (US$2.01), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Rekor Systems insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Rekor Systems Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Rekor Systems insiders own 3.8% of the company, worth about US$7.4m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Rekor Systems Tell Us?

The fact that there have been no Rekor Systems insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Rekor Systems insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Rekor Systems.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.