Lantronix (NASDAQ:LTRX) Stock Rating Cut to “Strong Sell” at Zacks Research

Zacks Research cut shares of Lantronix (NASDAQ:LTRX) from a hold rating to a strong sell rating in a report issued on Monday morning,Zacks reports.

Several other equities analysts have also recently weighed in on the company. Lake Street Capital raised their price target on Lantronix from $8.00 to $10.00 and gave the company a “buy” rating in a report on Friday, September 18th. Needham & Company LLC reaffirmed a “buy” rating and set a $11.00 price objective on shares of Lantronix in a report on Thursday, August 27th. Wall Street Zen raised Lantronix from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. JonesTrading started coverage on Lantronix in a research report on Wednesday, July 15th. They set a “buy” rating and a $12.00 target price for the company. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Lantronix in a report on Thursday, October 15th. Six analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $10.80.

Lantronix Stock Down 19.4%

Shares of Lantronix stock opened at $4.39 on Monday. The firm has a market cap of $205.80 million, a price-to-earnings ratio of -54.87 and a beta of 1.36. The business has a 50-day moving average price of $6.00 and a 200-day moving average price of $6.06. Lantronix has a twelve month low of $4.36 and a twelve month high of $8.75.

Lantronix (NASDAQ:LTRX) last issued its earnings results on Monday, November 9th. The technology company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.04 by $0.01. The firm had revenue of $32.37 million for the quarter, compared to analysts’ expectations of $31.98 million. Lantronix had a negative return on equity of 3.63% and a negative net margin of 2.63%. On average, equities analysts expect that Lantronix will post 0.07 EPS for the current fiscal year.

Insider Activity at Lantronix

In other Lantronix news, CEO Saleel Awsare purchased 15,000 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was purchased at an average price of $5.18 per share, with a total value of $77,700.00. Following the acquisition, the chief executive officer owned 453,381 shares in the company, valued at approximately $2,348,513.58. The trade was a 3.42% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On Lantronix

Large investors have recently added to or reduced their stakes in the stock. Royce & Associates LP lifted its stake in shares of Lantronix by 19.1% in the 3rd quarter. Royce & Associates LP now owns 1,448,513 shares of the technology company’s stock valued at $10,444,000 after purchasing an additional 232,427 shares during the last quarter. AWM Investment Company Inc. purchased a new position in shares of Lantronix in the 2nd quarter worth approximately $7,350,000. First Eagle Investment Management LLC purchased a new position in shares of Lantronix in the 3rd quarter worth approximately $6,889,000. Arrowstreet Capital Limited Partnership increased its position in shares of Lantronix by 41.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 945,025 shares of the technology company’s stock valued at $4,952,000 after purchasing an additional 275,842 shares during the last quarter. Finally, Renaissance Technologies LLC increased its position in shares of Lantronix by 8.8% during the 1st quarter. Renaissance Technologies LLC now owns 690,194 shares of the technology company’s stock valued at $3,617,000 after purchasing an additional 56,000 shares during the last quarter. 39.38% of the stock is owned by institutional investors.

Key Headlines Impacting Lantronix

Here are the key news stories impacting Lantronix this week:

• Positive Sentiment: Q1 revenue rose 8.6% year over year to $32.4 million, slightly above the $32.0 million consensus, while adjusted EPS of $0.05 topped the $0.04 estimate. Embedded IoT Solutions revenue increased 37%. Q1 results
• Positive Sentiment: CEO Elwell AWSARE purchased 15,000 shares in the past six months, a potential signal of insider confidence. Earnings and insider activity
• Neutral Sentiment: For fiscal Q2 2027, Lantronix forecast EPS of $0.04–$0.06 and revenue of $32.5 million–$34.5 million. The revenue range surrounds the $33.5 million consensus, offering no clear forecast-driven surprise. Company results and outlook
• Negative Sentiment: Profitability remained a concern: the company reported an operating loss of $558,000, a net loss of $463,000, and negative operating cash flow of $2.5 million. These pressures may be tempering the positive impact of the earnings beat. Quarterly financial details

About Lantronix

Lantronix, Inc. (NASDAQ: LTRX) is a provider of Internet of Things (IoT) and edge-computing solutions that help organizations connect, manage, and secure devices and equipment. The company serves customers in industrial, enterprise, transportation, healthcare, smart-city, and other applications where reliable remote connectivity and device management are required. Its portfolio includes embedded networking modules, industrial and cellular gateways, routers, out-of-band management products, and software for remotely provisioning, monitoring, and managing connected devices.