Rekor Systems, Inc. (REKR) saw a significant decline in its stock price on December 31, 2024, closing at $1.56, down 16.13% from the previous close of $1.86. The stock opened at $2.04, reaching a high of $2.05 before plummeting to a low of $1.42. The trading volume was extraordinarily high at 22,288,211 shares, nearly 891% of the average daily volume, indicating intense trading activity. The sharp drop was primarily driven by news of Sanctuary Advisors LLC reducing its holdings in Rekor by 65.2% during the third quarter, selling 244,932 shares. This move raised concerns about institutional confidence in the company, further exacerbated by speculation surrounding Arctis Global LLC, Rekor's largest institutional shareholder, known for shorting stocks. Discussions on Reddit reflected mixed sentiment, with some users expressing skepticism about institutional activities while others noted the stock's recent momentum and potential breakout opportunities.
Despite the positive discussions about Rekor's innovative use of AI technology for traffic and surveillance, the market's focus remained on the significant institutional sell-off and the potential implications of Arctis Global's involvement.