Lantronix (NASDAQ:LTRX) Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Lantronix from “hold” to “strong sell,” though the broader analyst consensus remains “Moderate Buy,” with an average price target of $10.80.
• Lantronix beat quarterly estimates, reporting $32.37 million in revenue and $0.05 in EPS, versus forecasts of $31.98 million and $0.04. The company nevertheless remained unprofitable, with negative net margin and return on equity.
• The stock opened at $4.39, near its one-year low of $4.36. CEO Saleel Awsare bought 15,000 shares at an average $5.18 per share.

Lantronix (NASDAQ:LTRX - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Monday, Zacks reports.

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

Lantronix Stock Performance

NASDAQ:LTRX opened at $4.39 on Monday. The business has a 50 day moving average of $6.00 and a 200 day moving average of $6.06. Lantronix has a 1-year low of $4.36 and a 1-year high of $8.75.

Lantronix (NASDAQ:LTRX - Get Free Report) last released its earnings results on Monday, November 9th. The technology company reported $0.05 EPS for the quarter, beating the consensus estimate of $0.04 by $0.01. The company had revenue of $32.37 million for the quarter, compared to analyst estimates of $31.98 million. Lantronix had a negative net margin of 2.63% and a negative return on equity of 3.63%. Equities analysts predict that Lantronix will post 0.07 EPS for the current year.

Insider Transactions at Lantronix

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

Institutional Investors Weigh In On Lantronix

Large investors have recently made changes to their positions in the business. StoneX Group Inc. bought a new position in shares of Lantronix during the third quarter valued at approximately $89,000. Globeflex Capital L P purchased a new position in Lantronix during the 2nd quarter valued at $76,000. Bank of America Corp DE increased its position in Lantronix by 210.7% during the 1st quarter. Bank of America Corp DE now owns 38,589 shares of the technology company's stock valued at $202,000 after purchasing an additional 26,170 shares during the period. State of Wyoming increased its position in Lantronix by 84.0% during the 3rd quarter. State of Wyoming now owns 42,537 shares of the technology company's stock valued at $307,000 after purchasing an additional 19,420 shares during the period. Finally, WINTON GROUP Ltd raised its holdings in Lantronix by 59.4% in the 2nd quarter. WINTON GROUP Ltd now owns 82,148 shares of the technology company's stock worth $483,000 after purchasing an additional 30,626 shares in the last quarter. 39.38% of the stock is currently 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.

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