Rekor Systems (NASDAQ:REKR) Trading Down 2.1% - Should You Sell?

Key Points

• Shares traded down about 2.1% to $0.8178 (intraday low $0.7956) on roughly 1.23M shares—about 50% below average—with a market cap of $111.7M and technicals showing a 50-day SMA of $0.86 vs. a 200-day SMA of $1.44.
• Analysts have a consensus Sell rating on Rekor, with Weiss Ratings reissuing a sell and Wall Street Zen downgrading the stock from hold to sell.
• The company missed quarterly estimates (EPS ($0.06) vs. ($0.04) expected; revenue $12.7M vs. $14.56M expected), reports a large negative net margin and ROE, and analysts forecast -0.12 EPS for the year.

Shares of Rekor Systems, Inc. (NASDAQ:REKR - Get Free Report) were down 2.1% during trading on Tuesday . The company traded as low as $0.7956 and last traded at $0.8178. Approximately 1,229,410 shares were traded during trading, a decline of 50% from the average daily volume of 2,436,128 shares. The stock had previously closed at $0.8350.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on REKR shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Rekor Systems in a research report on Tuesday, April 21st. Wall Street Zen cut shares of Rekor Systems from a "hold" rating to a "sell" rating in a research report on Saturday, April 4th. One analyst has rated the stock with a Sell rating, According to MarketBeat, Rekor Systems presently has a consensus rating of "Sell".

Rekor Systems Trading Down 2.1%

The company has a market capitalization of $111.70 million, a PE ratio of -3.15 and a beta of 2.00. The firm's 50-day simple moving average is $0.86 and its 200-day simple moving average is $1.44.

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 company had revenue of $12.70 million during the quarter, compared to analysts' expectations of $14.56 million. Rekor Systems had a negative net margin of 64.93% and a negative return on equity of 84.96%. As a group, analysts anticipate that Rekor Systems, Inc. will post -0.12 EPS for the current year.

Institutional Investors Weigh In On Rekor Systems

Hedge funds have recently modified their holdings of the business. Centiva Capital LP purchased a new stake in shares of Rekor Systems in the 3rd quarter worth approximately $34,000. International Assets Investment Management LLC purchased a new stake in shares of Rekor Systems in the 4th quarter worth approximately $35,000. 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. NewEdge Advisors LLC lifted its position in shares of Rekor Systems by 74.6% in the 2nd quarter. NewEdge Advisors LLC now owns 32,055 shares of the company's stock worth $37,000 after purchasing an additional 13,700 shares during the period. Finally, Jefferies Financial Group Inc. purchased a new stake in shares of Rekor Systems in the 3rd quarter worth approximately $52,000. Hedge funds and other 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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