Rekor Systems (NASDAQ:REKR) Lowered to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Rekor Systems (NASDAQ:REKR) from "hold" to sell, and Weiss Ratings also reissued a sell, leaving the consensus rating at Sell.
• Rekor missed quarterly estimates—EPS of ($0.06) vs. an expected ($0.04) and revenue below forecasts—and reported a negative net margin of -89.82% and return on equity of -126.37%, while shares trade around $0.76 with a market cap of about $103M.
• Institutional investors own roughly 45.71% of the company, with several funds (e.g., XTX Topco, Bank of America, Caitong) meaningfully increasing positions in recent quarters.

Rekor Systems (NASDAQ:REKR - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Separately, Weiss Ratings reissued a "sell (d-)" rating on shares of Rekor Systems in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat, the company presently has a consensus rating of "Sell".

Rekor Systems Stock Performance

Shares of REKR stock opened at $0.76 on Friday. The firm has a market capitalization of $103.45 million, a price-to-earnings ratio of -2.91 and a beta of 2.00. The company has a current ratio of 1.45, a quick ratio of 1.20 and a debt-to-equity ratio of 0.41. The business's 50-day moving average price is $0.91 and its 200-day moving average price is $1.55. Rekor Systems has a 12 month low of $0.62 and a 12 month high of $3.42.

Rekor Systems (NASDAQ:REKR - Get Free Report) last released its quarterly earnings data on Tuesday, March 31st. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.02). The firm had revenue of $12.70 million during the quarter, compared to analyst estimates of $14.56 million. Rekor Systems had a negative net margin of 89.82% and a negative return on equity of 126.37%. Equities research analysts forecast that Rekor Systems will post -0.57 EPS for the current year.

Institutional Investors Weigh In On Rekor Systems

A number of institutional investors have recently made changes to their positions in the stock. XTX Topco Ltd boosted its holdings in Rekor Systems by 611.9% in the second quarter. XTX Topco Ltd now owns 345,690 shares of the company's stock valued at $401,000 after acquiring an additional 297,131 shares during the last quarter. Daiwa Securities Group Inc. bought a new position in Rekor Systems during the 2nd quarter worth approximately $52,000. Jefferies Financial Group Inc. bought a new position in Rekor Systems during the 3rd quarter worth approximately $52,000. Bank of America Corp DE lifted its position in shares of Rekor Systems by 513.9% in the 3rd quarter. Bank of America Corp DE now owns 30,728 shares of the company's stock worth $48,000 after purchasing an additional 25,723 shares during the period. Finally, Caitong International Asset Management Co. Ltd lifted its position in shares of Rekor Systems by 845.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 33,263 shares of the company's stock worth $46,000 after purchasing an additional 29,745 shares during the period. Institutional investors own 45.71% of the company's stock.

About Rekor Systems

Rekor Systems, Inc is a U.S.-based technology company specializing in real-time vehicle recognition solutions powered by artificial intelligence and machine learning. The company develops software and hardware systems that capture, analyze and store vehicle data—such as license plate images, make and model, color and vehicle characteristics—by leveraging advanced computer vision algorithms. Rekor's platforms enable public safety agencies, transportation departments and private enterprises to automate vehicle identification, enhance situational awareness and improve operational efficiency.

The company's flagship offering is a suite of intelligent camera and analytics products that include built-in license plate recognition (LPR) and vehicle attribute classification.

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