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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. To wit, the Rekor Systems, Inc. (NASDAQ:REKR) share price has flown 269% in the last three years. That sort of return is as solid as granite. It's up an even more impressive 295% over the last quarter.
Because Rekor Systems made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Rekor Systems actually saw its revenue drop by 6.2% per year over three years. So the share price gain of 55% per year is quite surprising. It's a good reminder that expectations about the future, not the past history, always impact share prices.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Rekor Systems will earn in the future (free profit forecasts).
A Different Perspective
It's nice to see that Rekor Systems shareholders have gained 227% (in total) over the last year. That gain actually surpasses the 55% TSR it generated (per year) over three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Rekor Systems better, we need to consider many other factors. For instance, we've identified 4 warning signs for Rekor Systems (2 can't be ignored) that you should be aware of.
Rekor Systems is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. 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.
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