Arctis Global, a major holder of Rekor Systems (REKR), recently added 2,275,000 shares to their position. The buy increased the fund’s holdings by 23%, and came to a total cost of $3,185,000.
This is the fund’s first buy since last August, when it picked up $1.16 million in shares. Otherwise, company executives have been buyers over the past year, including the company CEO. There have been no insider sales at Rekor over the last year.
Overall, company insiders own 6.4% of shares, and institutions own 61.2%.
The AI traffic management software company has seen shares lose 35% of their value in the past year. Despite working on an AI technology, it’s for autonomous driving, which is taking a backseat to large language models and other potential AI rollouts right now.
As an early-stage company, Rekor has been burning through cash, losing $52 million in the last year, even as it grew earnings by 58%.
Action to take: Rekor shares have started to trend higher in recent weeks, and may constitute a rebound play from here. However, the company’s cash burn could mean taking on more debt or issuing more equity within the year, which could cause shares to dive.
Traders can also play the current short-term uptrend. The November $2.00 calls, last trading for about $0.50, are an at-the-money trade, and could leverage further returns higher in shares over the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
