Lantronix, Inc. (NASDAQ:LTRX) Sees Large Growth in Short Interest

Key Points

• Short interest in Lantronix surged in June, rising 146.6% to 2.38 million shares by June 30, with about 5.5% of shares sold short and a days-to-cover ratio of 1.3.
• The stock was up 2.3% in Tuesday trading to $5.43, but it remains below its 50-day and 200-day moving averages and has traded between a 52-week low of $2.86 and high of $8.75.
• Lantronix recently missed quarterly EPS and revenue estimates, though analysts remain mixed-to-positive overall with a “Moderate Buy” consensus and an average target price of $10.00.

Lantronix, Inc. (NASDAQ:LTRX - Get Free Report) was the target of a significant increase in short interest during the month of June. As of June 30th, there was short interest totaling 2,381,201 shares, an increase of 146.6% from the June 15th total of 965,615 shares. Based on an average daily volume of 1,902,063 shares, the days-to-cover ratio is currently 1.3 days. Currently, 5.5% of the shares of the stock are sold short.

Lantronix Trading Up 2.3%

NASDAQ:LTRX traded up $0.12 during trading hours on Tuesday, reaching $5.43. The company's stock had a trading volume of 109,800 shares, compared to its average volume of 1,060,410. The firm has a market capitalization of $238.81 million, a price-to-earnings ratio of -31.94 and a beta of 1.69. The firm has a 50-day simple moving average of $6.41 and a 200-day simple moving average of $6.19. Lantronix has a 1 year low of $2.86 and a 1 year high of $8.75. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.80 and a current ratio of 2.74.

Lantronix (NASDAQ:LTRX - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The technology company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.01). Lantronix had a negative net margin of 5.52% and a negative return on equity of 6.79%. The business had revenue of $30.18 million for the quarter, compared to analysts' expectations of $30.49 million. Lantronix has set its Q4 2026 guidance at 0.030-0.050 EPS. Research analysts expect that Lantronix will post -0.11 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on LTRX shares. UBS Group reissued a "buy" rating on shares of Lantronix in a report on Friday, June 12th. Needham & Company LLC began coverage on shares of Lantronix in a report on Friday, June 12th. They set a "buy" rating and a $11.00 price objective for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lantronix in a research report on Tuesday, April 21st. Canaccord Genuity Group increased their target price on Lantronix from $10.50 to $11.00 and gave the company a "buy" rating in a research note on Thursday, July 9th. Finally, Wall Street Zen downgraded Lantronix from a "strong-buy" rating to a "buy" rating in a research report on Sunday, June 14th. Five investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $10.00.

Hedge Funds Weigh In On Lantronix

Several institutional investors and hedge funds have recently bought and sold shares of LTRX. Nano Cap New Millennium Growth Fund L P bought a new stake in Lantronix in the fourth quarter valued at approximately $2,315,000. 683 Capital Management LLC purchased a new stake in shares of Lantronix during the fourth quarter valued at approximately $1,209,000. Bailard Inc. grew its holdings in shares of Lantronix by 357.0% in the fourth quarter. Bailard Inc. now owns 48,900 shares of the technology company's stock worth $287,000 after purchasing an additional 38,200 shares during the last quarter. R Squared Ltd grew its holdings in shares of Lantronix by 28.7% in the fourth quarter. R Squared Ltd now owns 18,107 shares of the technology company's stock worth $106,000 after purchasing an additional 4,034 shares during the last quarter. Finally, Ritholtz Wealth Management increased its stake in shares of Lantronix by 116.7% in the fourth quarter. Ritholtz Wealth Management now owns 127,902 shares of the technology company's stock worth $750,000 after buying an additional 68,872 shares during the period. 39.38% of the stock is currently owned by institutional investors.

About Lantronix

Lantronix, Inc is a provider of secure data access and management solutions designed to simplify the deployment, monitoring and control of devices and equipment across a wide range of industries. Headquartered in Irvine, California, the company develops hardware and software products that enable connectivity for smart devices, industrial machinery, IT infrastructure and other systems in the Internet of Things (IoT) ecosystem.

Founded in 1989, Lantronix was among the early innovators in serial-to-Ethernet device networking and has since expanded its portfolio to include secure console servers, device servers, gateways and embedded modules.

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