Rekor Systems Chief Executive Officer Acquires 125,000 Shares of Company Stock

Editor's note: This story has been updated to include a purchase of 25,000 shares by the Rekor Systems CEO that was previously omitted.

Robert A. Berman, Chief Executive Officer at Rekor Systems REKR, reported a large exercise of company stock options on August 22, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Berman, Chief Executive Officer at Rekor Systems, a company in the Information Technology sector, just exercised stock options worth 100,000 shares of REKR stock with an exercise price of $1.25. In addition to the exercise of options, Berman also purchased 25,000 shares of the company's stock at $3.137 per share.

Rekor Systems shares are trading down 7.23% at $3.18 at the time of this writing on Tuesday morning. Since the current price is $3.18, this makes Berman's 125,000 shares worth $397,750.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Rekor Systems's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.