Rekor Systems, Inc. (NASDAQ:REKR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 112% resulting in a US$92m addition to the company's market value. As a result, their original purchase of US$1.20m worth of stock is now worth US$1.59m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Rekor Systems Insider Transactions Over The Last Year

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. We do like to see buying, but this purchase was made at well below the current price of US$1.86. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Rekor Systems insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Rekor Systems insiders own 3.7% of the company, worth about US$4.5m. We consider this fairly low insider ownership.

So What Do The Rekor Systems Insider Transactions Indicate?

The fact that there have been no Rekor Systems insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Rekor Systems stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rekor Systems. To that end, you should learn about the 4 warning signs we've spotted with Rekor Systems (including 2 which can't be ignored).

Of course Rekor Systems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.