Saleel Awsare, President and CEO of Lantronix Inc. (NASDAQ:LTRX), has made a significant acquisition of company stock. According to a recent SEC filing, Awsare purchased 80,000 shares of common stock on November 13, 2024. The shares were acquired at a weighted average price of $2.662, with individual trades executed at prices ranging from $2.63 to $2.68. This transaction brings the total value of the purchase to approximately $212,960. Following this acquisition, Awsare now directly owns 233,184 shares of Lantronix.
In other recent news, Lantronix, Inc. reported a slight 4% year-over-year revenue increase, totaling $34.4 million for the first quarter of fiscal year 2025. The non-GAAP earnings per share (EPS) were reported at $0.06. The company's acquisition of NetComm's IoT product line is expected to significantly boost its revenue in the upcoming year. Additionally, Lantronix's collaboration with Qualcomm (NASDAQ:QCOM) on Edge AI is projected to impact its market position from 2026 onward. Canaccord Genuity, despite revising Lantronix's stock price target from $7.50 to $5.00, maintained a Buy rating on the company's shares. This adjustment is based on the firm's fiscal year 2026 estimated non-GAAP EPS of $0.38 and anticipates potential future acquisitions by Lantronix. Lastly, the company provided a cautious revenue outlook for Q2 FY2025, projecting revenue between $29 million and $33 million and non-GAAP EPS ranging from $0.01 to $0.05.
InvestingPro Insights
The recent stock purchase by Lantronix's CEO Saleel Awsare aligns with several key insights from InvestingPro. According to InvestingPro Tips, Lantronix's stock is currently in oversold territory, as suggested by the RSI indicator. This could explain why the CEO saw an opportune moment to increase his stake in the company.
Additionally, InvestingPro data shows that Lantronix's stock has taken a significant hit recently, with a 31.79% decline in the past week and a 35.28% drop over the last month. This sharp decline may have presented what the CEO perceives as an attractive entry point.
Despite recent stock performance challenges, InvestingPro Tips indicate that net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook might have influenced Awsare's decision to invest further in the company.
It's worth noting that Lantronix operates with a moderate level of debt and its liquid assets exceed short-term obligations, which could provide some financial stability as the company aims for profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Lantronix, providing a deeper understanding of the company's financial health and market position.
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