Rekor Systems Inc. (NASDAQ:REKR) Stock is Soaring, Here is Why

Rekor Systems Inc. (NASDAQ:REKR) Stock is Soaring, Here is Why

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The Rekor Systems Inc. (REKR) shares are trading at higher $3.97. The current analyst price target stands at $5.00.

To add more color to this target, the company’s high over the last year is $5.44 and the low is $1.41. Over the last 52 weeks, REKR is down -27.02% while the S&P 500 is down -2.55%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, REKR reported a profit of $1.1 million. Rekor Systems Inc. also saw revenues increase to $1.59 million. In addition, REKR has free cash flow of -$2.17 million as of 03-2020 The company’s EBITDA came in at -$1.85 million which compares well with its peers.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. REKR has a short ratio of 1.98 and outstanding shares of 21.93M.

Company Outlook

REKR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 66690.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.81. Rekor Systems Inc. REKR also noted assets of $29.12 million at the end of the last quarter. Investors should also keep an eye on sector updates as REKR has historically followed its peers on positive news.

All told, Rekor Systems Inc. REKR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, REKR represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Rekor Systems Inc. REKR is now commanding a market cap of 88.53M and a float of 12.12M. REKR is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of REKR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in REKR, either long or short, and we have not been compensated for this article.