On August 18, 2023, Arctis Global LLC, a Delaware-based investment firm, significantly increased its holdings in Rekor Systems Inc (REKR, Financial). The firm added 1,639,900 shares to its portfolio, representing a 20.48% change in its holdings. The shares were acquired at a price of $2.89 each, bringing Arctis Global's total holdings in Rekor Systems to 9,647,491 shares. This transaction had a 1.76% impact on the firm's portfolio and increased its position in Rekor Systems to 10.35%. The firm now holds a 13.99% stake in Rekor Systems.
About Arctis Global LLC
Arctis Global LLC is an investment firm located at 251 Little Falls Drive, Wilmington, Delaware. The firm manages an equity portfolio worth $265 million, spread across 12 stocks. Its top holdings include iShares MSCI Brazil ETF(EWZ, Financial), VanEck Gold Miners ETF(GDX, Financial), The Energy Select Sector SPDR Fund(XLE, Financial), Lockheed Martin Corp(LMT, Financial), and Teck Resources Ltd(TECK, Financial). The firm's investments are primarily concentrated in the Industrials and Basic Materials sectors. 
Rekor Systems Inc: A Brief Overview
Rekor Systems Inc is a US-based company that provides real-time roadway intelligence through AI-driven decisions. The company uses artificial intelligence to analyze video streams and transform them into actionable data. Its machine learning software can turn most IP cameras into accurate vehicle recognition devices used to help protect lives, increase brand loyalty, and enhance operations and logistics. The company's revenue is derived from product and service sales and recurring revenue. As of August 19, 2023, the company has a market capitalization of $216.507 million and its stock is trading at $3.14. The company went public on August 28, 2017. 
Analysis of Rekor Systems' Stock
Rekor Systems' stock is currently undervalued, with a GF Value of $6.15 and a price-to-GF Value ratio of 0.51. Since the transaction, the stock has gained 8.65% and has increased by 4.67% since its IPO. The stock has had a strong performance this year, with a YTD gain of 112.16%. The stock's GF Score is 60/100, indicating a poor future performance potential.
Evaluating Rekor Systems' Financial Health
Rekor Systems has a balance sheet rank of 4/10, a profitability rank of 1/10, and a growth rank of 3/10. The company's GF Value Rank is 4/10, and its momentum rank is 9/10. The company's Piotroski F-Score is 3, indicating poor business operations, and its Altman Z score is -2.74, suggesting potential financial distress. The company's cash to debt ratio is 0.09, ranking it 2609th in the industry.
Performance of Rekor Systems in the Software Industry
Rekor Systems operates in the software industry. The company has a ROE of -132.11 and a ROA of -79.99. Over the past three years, the company has seen a revenue growth of 13.60%, an EBITDA growth of -56.30%, and an earnings growth of -35.20%. The company's gross margin growth is 4.00%, and its operating margin growth is -74.90%.
Rekor Systems' Stock Momentum and Predictability
Rekor Systems' stock has a 5-day RSI of 74.05, a 9-day RSI of 64.68, and a 14-day RSI of 61.10. The stock's 6 - 1 month momentum index is 79.17, and its 12 - 1 month momentum index is 85.34. The company's predictability rank is not available.
Conclusion
In conclusion, Arctis Global LLC's recent acquisition of Rekor Systems Inc shares represents a significant addition to its portfolio. Despite Rekor Systems' poor financial health and profitability, the stock's strong momentum and undervaluation may offer potential upside for value investors. However, investors should exercise caution due to the company's low GF Score and potential financial distress. As always, it is crucial to conduct thorough research and consider multiple factors before making investment decisions.
