An insider at Lantronix Inc (NASDAQ:LTRX), a company specialized in computer communications equipment, has recently sold a significant number of shares, according to the latest SEC filings. Bernhard Bruscha, who has a notable ownership stake in the company, offloaded 8,435 shares at a price of $4.00 per share, totaling over $33,740.
Bruscha, through TL Investment GmbH, where he serves as managing director, conducted the sale on September 10, 2024. Following this transaction, TL Investment GmbH's direct holdings in Lantronix Inc decreased, but still amount to a substantial 5,373,036 shares. Additionally, it's worth noting that Bruscha's spouse holds 22,993 shares indirectly, which Bruscha has disclaimed beneficial ownership of, except to the extent of his pecuniary interest.
Investors often monitor insider transactions as they can provide insights into the confidence levels insiders have about their company's current status and future prospects. While the reasons behind insider sales can vary and don't necessarily indicate a negative outlook, they are still transactions of interest to the investment community.
Lantronix Inc's stock continues to be watched by investors who are interested in the computer communications sector, and movements by insiders are an integral part of the ongoing evaluation of the company's stock performance.
In other recent news, Lantronix reported record revenue and earnings per share (EPS) growth for the fourth quarter of the fiscal year 2024. The company announced a significant increase in its quarterly revenue, reaching a record $49.1 million, a 41% year-on-year increase. Non-GAAP EPS for the quarter also saw a notable rise, growing by 150% compared to the same period last year. For the full fiscal year, Lantronix achieved revenue of $160.3 million and record non-GAAP earnings of $15.4 million.
The company's focus on Smart Cities, Automotive, and Enterprise verticals has driven this significant growth. Looking ahead, Lantronix expects revenue for Q1 of fiscal 2025 to be between $34 million and $38 million, with non-GAAP EPS between $0.07 and $0.11 per share. The company has also secured strategic partnerships, such as the one with Qualcomm (NASDAQ:QCOM) on Edge AI computing projects, and has made significant strides in the smart grid sector.
These are the recent developments for Lantronix, demonstrating a strong performance and setting the stage for potential growth in the upcoming quarters.
InvestingPro Insights
Lantronix Inc (NASDAQ:LTRX), while experiencing insider sales, shows a complex financial picture according to recent InvestingPro data and tips. The company's market capitalization stands at $168.08 million, reflecting investor valuation of the company. Despite a negative P/E ratio of -36.98, which typically indicates that the company is not currently profitable, analysts predict that Lantronix will see net income growth this year.
InvestingPro Tips suggest that while two analysts have revised their earnings expectations downwards for the upcoming period, Lantronix has seen a significant return over the last week, month, and three months, with price total returns of 20.81%, 31.09%, and 21.14% respectively. This could point to a growing investor confidence in the short term, despite the recent insider sale. Moreover, the company's strong free cash flow yield, as implied by its valuation, and the fact that its liquid assets exceed short-term obligations, provide a measure of financial stability.
Key InvestingPro Data metrics for Lantronix include a notable revenue growth of 22.21% over the last twelve months as of Q4 2024, and an even more impressive quarterly revenue growth of 40.52% in Q4 2024. The gross profit margin stands at a healthy 40.65%, although the company operates with a slight negative operating income margin of -0.9%.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into Lantronix's performance and outlook. Visit InvestingPro for a comprehensive list of tips and real-time metrics.
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