LTRX Should I Buy
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Lantronix Inc (LTRX) is not a strong buy at this moment for a beginner investor with a long-term focus. Despite positive momentum in its drone business and bullish technical indicators, the company's financial performance has deteriorated significantly, and there are no strong short-term catalysts or trading signals to justify an immediate purchase.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), and the MACD histogram is positive at 0.105. However, the RSI is neutral at 74.006, and the stock is currently trading pre-market at $6.4, down -3.12%. Key support and resistance levels are Pivot: 6.133, R1: 6.645, S1: 5.621, R2: 6.961, S2: 5.305.
Craig-Hallum raised the price target to $10 from $7, citing strong momentum and multi-year visibility in the drone business. Gross margin increased by 7.53% YoY.
Pre-market price is down -3.12%, and no recent news or significant insider/hedge fund activity supports a strong buy case.
In Q2 2026, revenue dropped to $29.77M (-4.45% YoY), net income fell to -$1.33M (-43.93% YoY), and EPS dropped to -$0.03 (-50.00% YoY). However, gross margin improved to 41.54% (+7.53% YoY).
Craig-Hallum maintains a Buy rating and raised the price target to $10, highlighting strong growth potential in the drone business. The company expects its drone business to more than double in FY27 compared to FY26.
