Lantronix (NASDAQ:LTRX) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Lantronix from “buy” to “hold.” Analyst opinions remain mixed: MarketBeat reports a “Moderate Buy” consensus, with six Buy ratings, two Sell ratings and an average price target of $10.70.
• Lantronix shares were down 3.3% and opened at $4.33, close to their 52-week low of $4.31.
• The company beat quarterly estimates, reporting earnings of $0.05 per share versus $0.04 expected and revenue of $32.37 million versus $31.98 million forecast.

Lantronix (NASDAQ:LTRX - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

LTRX has been the subject of several other reports. Zacks Research cut shares of Lantronix from a "hold" rating to a "strong sell" rating in a research note on Monday, November 9th. Lake Street Capital upped their price target 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. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lantronix in a research note on Thursday, October 15th. Canaccord Genuity Group decreased their price objective on shares of Lantronix from $11.00 to $10.50 and set a "buy" rating for the company in a research report on Wednesday. Finally, Needham & Company LLC restated a "buy" rating and set a $11.00 price objective on shares of Lantronix in a research note on Thursday, August 27th. Six research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $10.70.

Lantronix Trading Down 3.3%

LTRX opened at $4.33 on Friday. The business's 50-day simple moving average is $5.95 and its 200 day simple moving average is $6.03. Lantronix has a 52-week low of $4.31 and a 52-week high of $8.75. The company has a current ratio of 2.99, a quick ratio of 2.86 and a debt-to-equity ratio of 0.04.

Lantronix (NASDAQ:LTRX - Get Free Report) last posted its quarterly earnings results 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. Lantronix had a negative return on equity of 3.35% and a negative net margin of 2.63%. The firm had revenue of $32.37 million for the quarter, compared to analyst estimates of $31.98 million. As a group, equities research analysts forecast that Lantronix will post 0.07 earnings per share for the current fiscal year.

Insider Activity at Lantronix

In related news, CEO Saleel Awsare acquired 15,000 shares of the company's stock in a transaction dated Wednesday, September 9th. The shares were bought at an average cost of $5.18 per share, with a total value of $77,700.00. Following the completion of the transaction, the chief executive officer directly owned 453,381 shares of the company's stock, 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 filing with the SEC, which is accessible through the SEC website. 2.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lantronix

Hedge funds have recently bought and sold shares of the stock. AWM Investment Company Inc. bought a new position in Lantronix during the 2nd quarter worth $7,350,000. First Eagle Investment Management LLC bought a new stake in shares of Lantronix in the third quarter valued at about $6,889,000. Arrowstreet Capital Limited Partnership boosted its position in shares of Lantronix by 41.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,025 shares of the technology company's stock valued at $4,952,000 after acquiring an additional 275,842 shares during the period. Royce & Associates LP boosted its position in shares of Lantronix by 19.1% in the third quarter. Royce & Associates LP now owns 1,448,513 shares of the technology company's stock valued at $10,444,000 after acquiring an additional 232,427 shares during the period. Finally, Squarepoint Ops LLC grew its stake in shares of Lantronix by 215.5% in the second quarter. Squarepoint Ops LLC now owns 254,886 shares of the technology company's stock valued at $1,499,000 after acquiring an additional 174,086 shares in the last quarter. 39.38% of the stock is currently owned by institutional investors and hedge funds.

Lantronix Company Profile

Lantronix provides secure connectivity, computing and remote-management solutions for the Internet of Things (IoT) and edge computing. Its products and services help businesses connect, monitor and manage devices and equipment across distributed networks. The company's offerings include embedded computing modules and systems, IoT gateways, device servers, network switches and console-management products. Lantronix also provides software and engineering services to support the design and deployment of connected applications.

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