LTRX Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Lantronix Inc (LTRX) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has potential in the drone sector and analysts have raised price targets, the recent financial performance shows declining revenue, net income, and EPS. Additionally, technical indicators and trading signals do not suggest a strong entry point currently. It is advisable to hold off on investing until stronger positive catalysts emerge or financial performance improves.
The MACD is negative and expanding, suggesting bearish momentum. RSI is neutral at 26.524, and moving averages are converging, indicating no strong trend. The stock is trading below key pivot levels (Pivot: 6.326, S1: 5.489), and the pre-market price of 5.44 is near support levels, showing limited upward momentum.
Analysts have raised price targets and highlighted strong growth potential in the drone sector, with expectations of multi-year momentum and significant revenue growth in FY26 and FY27.
The company's Q2 financials show declining revenue (-4.45% YoY), net income (-43.93% YoY), and EPS (-50% YoY). Technical indicators show bearish momentum, and there is no recent news or significant insider/hedge fund activity to support a buy decision.
In Q2 2026, revenue dropped to $29.77 million (-4.45% YoY), net income fell to -$1.33 million (-43.93% YoY), and EPS declined to -$0.03 (-50% YoY). However, gross margin improved to 41.54% (+7.53% YoY), indicating some operational efficiency.
Analysts are optimistic about the company's future in the drone sector. Craig-Hallum raised the price target to $10 from $7, and Lake Street raised it to $8 from $6, both maintaining a Buy rating. However, these ratings are based on future growth potential rather than current performance.
