Lantronix (NASDAQ:LTRX) Rating Lowered to Strong Sell at Zacks Research

Lantronix (NASDAQ:LTRX) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Monday, Zacks reports.

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

Lantronix Price Performance

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 stock’s 50-day moving average is $6.00 and its 200-day moving average is $6.06. Lantronix has a one year low of $4.36 and a one year high of $8.75.

Lantronix (NASDAQ:LTRX) last posted its quarterly earnings data on Monday, November 9th. The technology company reported $0.05 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.01. The company had revenue of $32.37 million during 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 year.

Insiders Place Their Bets

In related news, CEO Saleel Awsare purchased 15,000 shares of the firm’s stock in a transaction on Wednesday, September 9th. The stock was purchased at an average cost of $5.18 per share, for a total transaction of $77,700.00. Following the completion of the purchase, the chief executive officer directly owned 453,381 shares in the company, valued at $2,348,513.58. This trade represents a 3.42% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lantronix

Several large investors have recently made changes to their positions in the stock. First Eagle Investment Management LLC bought a new position in shares of Lantronix in the third quarter valued at $6,889,000. Royce & Associates LP increased its holdings in Lantronix by 19.1% during the third quarter. Royce & Associates LP now owns 1,448,513 shares of the technology company’s stock worth $10,444,000 after buying an additional 232,427 shares during the last quarter. StoneX Group Inc. bought a new stake in Lantronix during the third quarter worth $89,000. State of Wyoming raised its position in Lantronix by 84.0% during the third quarter. State of Wyoming now owns 42,537 shares of the technology company’s stock worth $307,000 after acquiring an additional 19,420 shares in the last quarter. Finally, WINTON GROUP Ltd raised its position in Lantronix by 59.4% during the second quarter. WINTON GROUP Ltd now owns 82,148 shares of the technology company’s stock worth $483,000 after acquiring an additional 30,626 shares in the last quarter. Institutional investors and hedge funds own 39.38% of the company’s stock.

Key Lantronix News

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.