Lantronix Prices 4.17M Share Offering at $7.20
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: seekingalpha
- Offering Pricing: Lantronix has priced an underwritten offering of 4.17 million shares at $7.20 per share, aiming for gross proceeds of approximately $30 million, which will provide essential funding for future growth initiatives.
- Underwriter Option: The underwriters are granted a 30-day option to purchase an additional 625,000 shares at the offering price, which could enhance market confidence in the offering's success.
- Market Reaction: Following the announcement of the offering, Lantronix's stock fell 10.59% in premarket trading to $7.56, indicating potential market concerns regarding the impact of the offering on short-term stock performance.
- Future Revenue Expectations: Lantronix targets $10 million to $14 million in drone revenue for fiscal 2026, with expectations that drone revenue will account for 15% to 20% of total revenue in fiscal 2027, highlighting the company's growth potential in emerging markets.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LTRX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LTRX
Wall Street analysts forecast LTRX stock price to fall
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 8.450
Low
7.00
Averages
7.88
High
9.00
Current: 8.450
Low
7.00
Averages
7.88
High
9.00
About LTRX
Lantronix Inc. specializes in compute and connectivity Internet of things (IoT) solutions that target industries including smart cities, automotive and enterprise. The Company's products and services help companies to capitalize on the expanding IoT market by delivering customizable solutions that address each layer of the IoT stack. Its solutions include intelligent substations infrastructure, infotainment systems and video surveillance, supplemented with advanced out-of-band management (OOB) for cloud and edge computing. Its solutions enable ultra-fast ethernet-to-cellular and wi-fi connectivity for machines in the demanding environments. Its product lines include Embedded IoT Modules, IoT Systems Solutions, and Software and Engineering Services. The Company's products include Edge AI, OOB, network infrastructure, industrial IoT, SoMs and dev kits, and connectivity modules. Its SmartLV, powered by the Qualcomm IQ-615 processor, is an AI-enabled IoT Edge Compute Cellular Gateway.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lantronix Prices 4.17 Million Share Offering at $7.20 Each
- Offering Size: Lantronix announced the pricing of 4,166,667 shares of common stock at $7.20 each, aiming for gross proceeds of approximately $30 million, which will provide essential funding to accelerate the development of its Edge AI and Industrial IoT solutions.
- Underwriter Selection: The offering is being managed by Needham & Company and Canaccord Genuity as joint bookrunners, reflecting market confidence in Lantronix's business model while providing professional marketing support to enhance investor outreach.
- Additional Share Option: Lantronix has granted underwriters a 30-day option to purchase up to 625,000 additional shares at the same price, which adds flexibility to the capital structure and may help meet future growth demands.
- Compliance and Transparency: The offering is conducted under a shelf registration statement on Form S-3 that became effective on February 19, 2025, ensuring compliance and enhancing investor trust in the company's transparency, which could attract more investor participation.
See More
Lantronix Prices 4.17M Share Offering at $7.20
- Offering Pricing: Lantronix has priced an underwritten offering of 4.17 million shares at $7.20 per share, aiming for gross proceeds of approximately $30 million, which will provide essential funding for future growth initiatives.
- Underwriter Option: The underwriters are granted a 30-day option to purchase an additional 625,000 shares at the offering price, which could enhance market confidence in the offering's success.
- Market Reaction: Following the announcement of the offering, Lantronix's stock fell 10.59% in premarket trading to $7.56, indicating potential market concerns regarding the impact of the offering on short-term stock performance.
- Future Revenue Expectations: Lantronix targets $10 million to $14 million in drone revenue for fiscal 2026, with expectations that drone revenue will account for 15% to 20% of total revenue in fiscal 2027, highlighting the company's growth potential in emerging markets.
See More
Music and Electronics Store Stocks Rise
- Market Performance: Music and electronics store stocks collectively rose by approximately 4.5%, indicating relative strength in the sector and reflecting ongoing consumer demand for electronic products.
- Best Buy Leads: Best Buy's stock surged by about 17.1%, positioning it as the leader in the sector, which suggests enhanced competitiveness and consumer trust in the brand.
- Upbound Group Growth: Upbound Group's stock increased by approximately 2.3%, showing stability and potential growth opportunities despite a smaller gain compared to its peers.
- Industry Trend Analysis: The upward trend in stock prices may be linked to rising consumer demand for electronic and music-related products, signaling potential for future sales growth.
See More
U.S. Equities Semi-Annual Rebalancing Begins
- Rebalancing Announcement: FTSE Russell has unveiled the preliminary adjustments for the Russell 3000 Index, marking the official start of the semi-annual rebalancing of U.S. equities, which is expected to impact market liquidity.
- New Additions: The communication services sector will see additions including Lantronix (LTRX), Lightwave Logic (LWLG), and KVH Industries (KVHI), indicating potential growth opportunities for these companies in the market.
- No Deletions: There are no deletions in the communication services stocks during this rebalancing, reflecting the stability and ongoing attractiveness of this sector, which may draw more investor attention.
- Effective Date: The structural changes will officially take effect after the close of U.S. equity markets on Friday, June 26, prompting investors to pay attention to this date for potential adjustments in their investment strategies.
See More
Lantronix CEO and CFO to Attend Investor Conferences
- Investor Conference Schedule: Lantronix's CEO Saleel Awsare and CFO Brent Stringham will participate in one-on-one meetings at the Needham Technology, Media & Consumer 1x1 Conference on May 13 in New York City, showcasing the company's leadership in Edge AI and Industrial IoT solutions.
- Strategic Communication Opportunity: At the Craig-Hallum 23rd Annual Institutional Investor Conference on May 28, Awsare and Stringham will engage in one-on-one meetings to strengthen investor relations and enhance the company's influence in rapidly growing markets.
- Market Positioning: Lantronix focuses on high-growth markets such as smart cities, enterprise IT, and unmanned systems, providing secure connectivity and remote management to help customers optimize operations and accelerate digital transformation, thereby gaining a competitive edge.
- Technology Innovation Drive: The company is committed to bringing intelligence to the network edge, offering comprehensive solutions ranging from secure video surveillance to intelligent utility infrastructure, ensuring efficiency and security in today's AI-driven world.
See More
Lantronix Q3 Earnings: Optimistic Drone Outlook
- Strong Financial Performance: Lantronix reported Q3 fiscal 2026 revenue of $30.2 million and non-GAAP EPS of $0.04, both within guidance, with gross margins above 43%, indicating robust support from higher-margin products and recurring revenue streams.
- Optimistic Drone Market Outlook: CEO Saleel Awsare highlighted that the FCC's December 2025 policy shift significantly improves the outlook for domestic drone suppliers, with expectations for drone revenue to represent 15% to 20% of total revenue in fiscal 2027, anticipating nearly 100% growth.
- Technology Strategy Expansion: The company announced a partnership with MediaTek's Genio family of system-on-chip, enhancing its multi-silicon strategy and filling important use case gaps in its portfolio, further advancing its drone and counter-drone systems.
- Positive Future Guidance: CFO Brent Stringham guided Q4 fiscal 2026 revenue expectations between $29 million and $33 million, with non-GAAP EPS projected at $0.03 to $0.05, reflecting the company's confidence in future growth despite cautious procurement patterns from federal customers.
See More
Lantronix Prices 4.17 Million Share Offering at $7.20 Each
- Offering Size: Lantronix announced the pricing of 4,166,667 shares of common stock at $7.20 each, aiming for gross proceeds of approximately $30 million, which will provide essential funding to accelerate the development of its Edge AI and Industrial IoT solutions.
- Underwriter Selection: The offering is being managed by Needham & Company and Canaccord Genuity as joint bookrunners, reflecting market confidence in Lantronix's business model while providing professional marketing support to enhance investor outreach.
- Additional Share Option: Lantronix has granted underwriters a 30-day option to purchase up to 625,000 additional shares at the same price, which adds flexibility to the capital structure and may help meet future growth demands.
- Compliance and Transparency: The offering is conducted under a shelf registration statement on Form S-3 that became effective on February 19, 2025, ensuring compliance and enhancing investor trust in the company's transparency, which could attract more investor participation.
See More
Lantronix Prices 4.17M Share Offering at $7.20
- Offering Pricing: Lantronix has priced an underwritten offering of 4.17 million shares at $7.20 per share, aiming for gross proceeds of approximately $30 million, which will provide essential funding for future growth initiatives.
- Underwriter Option: The underwriters are granted a 30-day option to purchase an additional 625,000 shares at the offering price, which could enhance market confidence in the offering's success.
- Market Reaction: Following the announcement of the offering, Lantronix's stock fell 10.59% in premarket trading to $7.56, indicating potential market concerns regarding the impact of the offering on short-term stock performance.
- Future Revenue Expectations: Lantronix targets $10 million to $14 million in drone revenue for fiscal 2026, with expectations that drone revenue will account for 15% to 20% of total revenue in fiscal 2027, highlighting the company's growth potential in emerging markets.
See More
Music and Electronics Store Stocks Rise
- Market Performance: Music and electronics store stocks collectively rose by approximately 4.5%, indicating relative strength in the sector and reflecting ongoing consumer demand for electronic products.
- Best Buy Leads: Best Buy's stock surged by about 17.1%, positioning it as the leader in the sector, which suggests enhanced competitiveness and consumer trust in the brand.
- Upbound Group Growth: Upbound Group's stock increased by approximately 2.3%, showing stability and potential growth opportunities despite a smaller gain compared to its peers.
- Industry Trend Analysis: The upward trend in stock prices may be linked to rising consumer demand for electronic and music-related products, signaling potential for future sales growth.
See More
U.S. Equities Semi-Annual Rebalancing Begins
- Rebalancing Announcement: FTSE Russell has unveiled the preliminary adjustments for the Russell 3000 Index, marking the official start of the semi-annual rebalancing of U.S. equities, which is expected to impact market liquidity.
- New Additions: The communication services sector will see additions including Lantronix (LTRX), Lightwave Logic (LWLG), and KVH Industries (KVHI), indicating potential growth opportunities for these companies in the market.
- No Deletions: There are no deletions in the communication services stocks during this rebalancing, reflecting the stability and ongoing attractiveness of this sector, which may draw more investor attention.
- Effective Date: The structural changes will officially take effect after the close of U.S. equity markets on Friday, June 26, prompting investors to pay attention to this date for potential adjustments in their investment strategies.
See More
Lantronix CEO and CFO to Attend Investor Conferences
- Investor Conference Schedule: Lantronix's CEO Saleel Awsare and CFO Brent Stringham will participate in one-on-one meetings at the Needham Technology, Media & Consumer 1x1 Conference on May 13 in New York City, showcasing the company's leadership in Edge AI and Industrial IoT solutions.
- Strategic Communication Opportunity: At the Craig-Hallum 23rd Annual Institutional Investor Conference on May 28, Awsare and Stringham will engage in one-on-one meetings to strengthen investor relations and enhance the company's influence in rapidly growing markets.
- Market Positioning: Lantronix focuses on high-growth markets such as smart cities, enterprise IT, and unmanned systems, providing secure connectivity and remote management to help customers optimize operations and accelerate digital transformation, thereby gaining a competitive edge.
- Technology Innovation Drive: The company is committed to bringing intelligence to the network edge, offering comprehensive solutions ranging from secure video surveillance to intelligent utility infrastructure, ensuring efficiency and security in today's AI-driven world.
See More
Lantronix Q3 Earnings: Optimistic Drone Outlook
- Strong Financial Performance: Lantronix reported Q3 fiscal 2026 revenue of $30.2 million and non-GAAP EPS of $0.04, both within guidance, with gross margins above 43%, indicating robust support from higher-margin products and recurring revenue streams.
- Optimistic Drone Market Outlook: CEO Saleel Awsare highlighted that the FCC's December 2025 policy shift significantly improves the outlook for domestic drone suppliers, with expectations for drone revenue to represent 15% to 20% of total revenue in fiscal 2027, anticipating nearly 100% growth.
- Technology Strategy Expansion: The company announced a partnership with MediaTek's Genio family of system-on-chip, enhancing its multi-silicon strategy and filling important use case gaps in its portfolio, further advancing its drone and counter-drone systems.
- Positive Future Guidance: CFO Brent Stringham guided Q4 fiscal 2026 revenue expectations between $29 million and $33 million, with non-GAAP EPS projected at $0.03 to $0.05, reflecting the company's confidence in future growth despite cautious procurement patterns from federal customers.
See More
