Lantronix (NASDAQ:LTRX) Downgraded by Wall Street Zen to Buy

Key Points

• Wall Street Zen downgraded Lantronix from “strong-buy” to “buy”, while the broader analyst view remains Moderate Buy with a consensus price target of $7.38.
• Lantronix reported Q3 earnings of $0.04 per share, missing estimates, and revenue of $30.18 million, also slightly below expectations. The company’s outlook calls for Q4 2026 EPS of $0.03 to $0.05.
• The stock was up 5.7% to $6.16 in Friday trading, and institutional interest remains notable, with hedge funds and asset managers owning 39.38% of the company. An insider sale by Mathi Gurusamy also reduced his holdings by about 20.66%.

Lantronix (NASDAQ:LTRX - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

A number of other research analysts have also recently issued reports on LTRX. Needham & Company LLC boosted their price objective on shares of Lantronix from $7.50 to $8.50 and gave the company a "buy" rating in a report on Thursday, February 5th. Craig Hallum restated a "buy" rating and set a $10.00 price objective on shares of Lantronix in a report on Thursday, February 5th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Lantronix in a report on Tuesday, April 21st. Four investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $7.38.

Lantronix Trading Up 5.7%

LTRX opened at $6.16 on Friday. The company has a market cap of $244.49 million, a price-to-earnings ratio of -36.24 and a beta of 1.63. The firm has a 50 day simple moving average of $5.98 and a 200 day simple moving average of $5.78. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.75 and a quick ratio of 1.79. Lantronix has a fifty-two week low of $2.03 and a fifty-two week high of $8.24.

Lantronix (NASDAQ:LTRX - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The technology company reported $0.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.05 by ($0.01). The firm had revenue of $30.18 million for the quarter, compared to analyst estimates of $30.49 million. Lantronix had a negative net margin of 5.52% and a negative return on equity of 6.79%. Lantronix has set its Q4 2026 guidance at 0.030-0.050 EPS. On average, sell-side analysts anticipate that Lantronix will post -0.1 earnings per share for the current year.

Insider Buying and Selling at Lantronix

In other news, insider Mathi Gurusamy sold 14,467 shares of the company's stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $6.21, for a total value of $89,840.07. Following the completion of the transaction, the insider owned 55,569 shares in the company, valued at $345,083.49. This represents a 20.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 2.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Soviero Asset Management LP bought a new stake in shares of Lantronix in the third quarter worth $2,331,000. Nano Cap New Millennium Growth Fund L P bought a new stake in shares of Lantronix in the fourth quarter worth $2,315,000. Arrowstreet Capital Limited Partnership lifted its position in shares of Lantronix by 135.5% in the third quarter. Arrowstreet Capital Limited Partnership now owns 669,183 shares of the technology company's stock worth $3,058,000 after purchasing an additional 385,075 shares in the last quarter. 683 Capital Management LLC bought a new stake in shares of Lantronix in the fourth quarter worth $1,209,000. Finally, Citadel Advisors LLC lifted its position in shares of Lantronix by 1,191.2% in the third quarter. Citadel Advisors LLC now owns 195,583 shares of the technology company's stock worth $894,000 after purchasing an additional 180,436 shares in the last quarter. Institutional investors and hedge funds own 39.38% of the company's stock.

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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