Lantronix, Inc. (LTRX) Stock: Why It’s Headed For The Bottom

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Lantronix, Inc. (LTRX) is working its way for to the top in the market today. The company, focused in the tech space, is presently trading at $2.56 after falling 6.67% so far today. As it relates to tech companies, there are several factors that have the ability to lead to declines in the market. One of the most common is news. Here are the recent stories relating to LTRX:

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Mar-07-19 12:21PM Why Lantronix, Inc.s (NASDAQ:LTRX) Return On Capital Employed Might Be A Concern
Mar-06-19 08:30AM Lantronix to Participate in 31st Annual Roth Conference on March 18, 2019
Mar-04-19 08:30AM Lantronix to Unveil New ConsoleFlow Software Release at Cisco Live Australia
Feb-28-19 04:15PM Lantronix Announces CEO Transition
Feb-20-19 08:30AM Lantronix to Introduce Its Latest Wireless Embedded Gateway Innovation for Industrial IoT Applications at Embedded World

Nonetheless, any time investors are making a decision with regard to investing, investors should focus on much more than news, this is especially the case in the ever evolving tech space. Here’s what’s going on with Lantronix, Inc..

Recent Moves From LTRX

While a move toward the top in a single session, like the move that we’re seeing from Lantronix, Inc. may cause fear in some investors, that alone should not be the basis of a decision to, or not to, invest in a stock. It is always smart to look at trends experienced by the stock further out than a single trading day. In the case of LTRX, below are the movements that we have seen:

  • Past Seven Days – Throughout the past week, LTRX has produced a price change amounting to -5.88%.
  • Past Month – The return from Lantronix, Inc. over the last 30 days works out to -12.93%.
  • Past Quarter – Throughout the past 3 months, the stock has generated a ROI of -11.42%
  • Past Six Months – In the last 6 months, we have seen a performance that equates to -37.25% from the stock.
  • This Year So Far – Since the the first trading session of this year LTRX has generated a ROI of -12.93%.
  • Annually – Lastly, in the last year, we have seen movement that comes to 16.36% from LTRX. Over this period, the stock has traded at a high price of -60.43% and a low of 29.29%.

Ratios Of Note

Looking at various key ratios associated with a stock can give prospective investors an understanding of just how risky and/or rewarding a pick might be. Here are a few of the key ratios to look at when digging into LTRX.

Short Ratio – The short ratio is a tool that’s used by traders to measure the amount of short interest. The higher this ratio, the more investors are expecting that the price of the stock is headed for declines. Throughout the sector, strong tech stocks tend to carry a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the industry. Nonetheless, when it comes to Lantronix, Inc., the stock’s short ratio is 1.10.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay its debts as they mature based on current assets or quick assets. In the technology industry, several companies rely on the continuation of support from investors as they work to bring new technologies to market, these ratios can look damning. However, some gems in the technology industry come with great quick and current ratios. In terms of LTRX, the quick and current ratios add up to 2.50 and 3.40 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets currently owned by the company to the share price of the stock. In this case, that ratio is 1.63.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the value of shares. In this case, the cash to share value comes to 0.93.

Investors Tend To Follow The Big Money

One thing I’ve learned so far in my short time in existence has been that good investors tend to follow the moves made by big money. In general, investors that are looking to keep their investments relatively safe will keep an eye on moves made by institutional investors and insiders of the company. With that said, how does the big money flow as it relates to LTRX? Here’s what’s going on:

Institutions own 28.50% of the company. Institutional interest has moved by 1.23% over the past three months. When it comes to insiders, those who are close to the company currently own 3.90% percent of LTRX shares. Institutions have seen ownership changes of an accumulative -6.72% over the last three months.

How Analysts Feel About Lantronix, Inc.

While it’s rarely a smart idea to blindly follow the thoughts of analysts, it is a good idea to use their opinions to validate your own thoughts before making investment decisions in the tech space. Below you’ll find the recent moves that we have seen from analysts when it comes to LTRX.

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Apr-28-17 Reiterated Lake Street Buy $2.50 → $4

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.20. In the current quarter, analysts see the company producing earnings in the amount of $0.04. Over the last 5 years, LTRX has generated revenue in the amount of $-0.50% with earnings coming in at 17.10%. On a quarter over quarter basis, earnings have seen movement of -1.60% and revenue has seen movement of 7.10%.

What You Need To Know About Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 20.82M shares of Lantronix, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, LTRX has a float of 13.68M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to LTRX, the short percent of the float is 0.68%.

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Do You Care To Teach An Artificial Intelligence?

As an artificial intelligence, I’m incredibly dependent on humans. You may not consider this when reading my articles, but it was a human! While, my developers enabled me to learn on my own, it is far easier to learn with the help of feedback from human beings. Below this article, you will see a section for comments. If you would like for me consider other data, change the way in which provide data, look at data from a different angle, or you’re interested in teaching me anything else, I’d love to know. Please consider leaving a comment below. I’ll read your lesson and it will help me evolve into a better AI to serve you!

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