Technicals Say Lantronix Inc. (LTRX) Is A Hold

Lantronix Inc. (NASDAQ:LTRX) finished Friday with an addition of $0.32 to close at $7.36, an upside of 4.55 percent. An average of 200,280 shares of common stock have been traded in the last five days. There was a gain of $0.36 in the past week, and it reached a new high 20 times over the past 12 months. The last 20 days have seen an average of 158,435 shares traded, while the 50-day average volume stands at 190,442.

LTRX stock has increased by 18.90% in the last month. The company shares reached their 1-month lowest point of $5.68 on 09/30/21. With the stock rallying to its 52-week high on 10/20/21, shares of the company touched a low of $4.06 and a high of $7.37 in 52 weeks. It has reached a new high 22 times so far this year and achieved 65.77% or $2.92 in price. In spite of this, the price is down -0.13% from the 52-week high.


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Insider Transactions

155 days have passed since Lantronix Inc. (LTRX) last reported insider trading activity. FOLINO PAUL F, who is Director, most recently acquired $4,000 shares at $5.38 per share on May 21. In this transaction, the insider spent $21,502. Director, FOLINO PAUL F, disposed of 5,500 shares at a price of $5.06 on Dec 07. The insider now owns more than $27,824 worth of shares.

Valuation Metrics

Lantronix Inc. (LTRX) has a trailing price-to-earnings (P/E) ratio of 23.30 for the broader industry and 38.99 for the sector. In the last five years, Lantronix Inc.’s PE ratio has ranged between 209.33 and 35.24. The stock’s beta is 2.03. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.93, the price-to-book (PB) ratio at 4.63, and the price-to-cash flow ratio at 59.85.

The quick ratio of Lantronix Inc. for the three months ended June 29 was 1.20, and the current ratio was 1.90, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.05 and a total debt to equity ratio of 0.08 for the quarter ending June 29. Its gross profit as reported stood at $33.02 million compared to revenue of $71.48 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Lantronix Inc.’s return on assets was -5.80%. For the broader industry, ROE averaged 3.62 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Lantronix Inc. had $2.21 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$1.1 million in the quarter, while revenues of -$1.19 million were shrunk -54.55%. The analyst consensus anticipated Lantronix Inc.’s latest quarter earnings to come in at $0.05 per share, but it turned out to be $0.06, a 20.00% surprise. For the quarter, EBITDA amounted to -$0.22 million. Shareholders own equity worth $29.13 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Lantronix Inc. (LTRX) price momentum. RSI 9-day as of the close on 22 October was 73.81%, suggesting the stock is Overbought, with historical volatility in this time frame at 49.14%.

As of today, LTRX’s price is $7.11 +5.14% or $0.36 from its 5-day moving average. LTRX is currently trading +21.65% higher than its 20-day SMA and +31.43% higher than its 100-day SMA. However, the stock’s current price level is +46.03% above the SMA50 and +56.60% above the SMA200.

The stochastic %K and %D were 88.02% and 85.64%, respectively, and the average true range (ATR) was 0.37. With the 14-day stochastic at 99.30% and the average true range at 0.36, the RSI (14) stands at 69.20%. The stock has reached 0.23 on the 9-day MACD Oscillator while the 14-day reading was at 0.54.

Analyst Ratings

Craig Hallum launched coverage on Lantronix Inc. (NASDAQ: LTRX) in its analyst report released on October 12, 2021. The firm assigned the stock a a Buy rating. The consensus rating for Lantronix Inc. (LTRX) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell LTRX, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 4 others rate it as a “buy”.

What is LTRX’s price target for the next 12 months?

Analysts predict a range of price targets between $7.00 and $11.00, with a median target of $9.50. Taking a look at these predictions, the average price target given by analysts for Lantronix Inc. (LTRX) stock is $9.25.

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