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Insiders who bought Rekor Systems, Inc. (NASDAQ:REKR) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$26m as a result of the stock's 18% gain over the same period. As a result, the stock they originally bought for US$1.20m is now worth US$1.61m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Rekor Systems
The Last 12 Months Of Insider Transactions At Rekor Systems
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. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.88. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Rekor Systems insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Rekor Systems is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Rekor Systems insiders own 3.8% of the company, worth about US$7.1m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Rekor Systems Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Rekor Systems insiders bought more shares in 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. When we did our research, we found 4 warning signs for Rekor Systems (2 are concerning!) that we believe deserve your full attention.