Should I Buy LTRX? LTRX 2026 Analysis

Should You Buy Lantronix Inc (LTRX) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

6.180

1 Day change

6.19%

52 Week Range

8.240

Analysis Updated At

2026/02/05

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Buy now for a near-term rebound setup: price is trading below S1 (6.102) and closer to S2 (5.564), while options positioning is heavily call-skewed and news/earnings flow is supportive.
Near-term trade map: upside reclaim targets are 6.10 → 6.97 (pivot); a clean move back above the pivot improves odds of testing 7.84 (R1).
Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.

Technical Analysis

Trend/MAs: Bullish structure with SMA_5 > SMA_20 > SMA_200, suggesting the broader trend is still constructive despite the dip.
Momentum: MACD histogram -0.039 and negatively expanding = downside momentum is active short-term.
RSI: RSI_6 = 38.5 (not oversold, but weak/near washed-out zone), consistent with potential bounce conditions if selling pressure fades.
Levels: Current price 5.99 is below S1 (6.102) and below pivot (6.973); next downside level is S2 (5.564); resistance levels 6.97 / 7.84.
Pattern-based expectation (provided): slight bias to flat/soft returns (next day -0.07%, next month -0.97%), so the edge is more catalyst/sentiment-driven than purely statistical.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment: Extremely low put/call ratios (OI 0.05, volume 0.08) = strong bullish/speculative call bias.
Activity: Options volume is elevated (~156% of 30-day avg) and open interest elevated (~142% vs avg), indicating heightened positioning.
Volatility: IV 30d ~132.5 with IV percentile ~93 = options are pricing a big move; sentiment is bullish but premiums are expensive (market expects volatility).

Technical Summary

Sell

Buy

Positive Catalysts

- Earnings/event-driven: Q2 FY2026 results showed non-GAAP EPS of $0.04 (beat) and strong operational execution.
- Drone thesis strengthening: Company raised FY2026 drone revenue outlook to $8M–$12M, reinforcing a clear growth narrative.
- Margins improving: Reports cite GAAP gross margin 43.6% in Q2 and snapshot shows gross margin up YoY, supporting profitability trajectory.
- Sector tailwind narrative: News flow continues to emphasize expanding drone-services markets, which supports the “drone exposure” positioning investors are targeting in LTRX.

Neutral/Negative Catalysts

- Top-line contraction: Q2 FY2026 revenue down ~4.45% YoY (growth is not yet consistent).
- Profitability still negative on GAAP: Net income remains negative (loss), and EPS in the snapshot is -0.03.
- Short-term technical pressure: MACD is deteriorating and price is below key levels (pivot/S1), so timing risk remains if selling continues.
- Guidance tone: Q3 FY2026 revenue guide $28.5M–$32.5M reads like cautious optimism rather than a clear acceleration signal.

Financial Performance

Latest quarter: 2026/Q2
Revenue: $29.77M, -4.45% YoY (decline, but relatively modest).
Margins: Gross margin 41.54%, +7.53% YoY (clear improvement and a key positive trend).
Bottom line: Net income -$1.33M (still a loss); snapshot indicates a larger loss YoY.
EPS: -0.03 in snapshot (down YoY), though the company also reported non-GAAP EPS +0.04 in news—operational performance looks better on an adjusted basis than GAAP results.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Most recent notable update (2025-12-11): Lake Street reiterated Buy and raised price target to $8 from $6.
Wall Street “pros” view: Under-the-radar drone exposure, momentum in drone market and adjacent embedded/management solutions, and improving execution/margins.
Wall Street “cons” view: Revenue volatility/declines and ongoing GAAP losses mean the story still depends on converting drone/embedded momentum into sustained growth and profitability.
Positioning/flows check: Hedge funds and insiders are reported Neutral recently; no recent Congress trading data available.

4 Analyst Rating

Wall Street analysts forecast LTRX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LTRX is 7.88 USD with a low forecast of 7 USD and a high forecast of 9 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

0 Hold

0 Sell

Strong Buy

Current: 5.820

Low

Averages

7.88

High

Current: 5.820

Low

Averages

7.88

High

Craig-Hallum

Buy

maintain

$7 -> $10

AI Analysis

2026-02-05

New

Reason

Craig-Hallum

Price Target

$7 -> $10

AI Analysis

2026-02-05

New

maintain

Buy

Reason

Craig-Hallum raised the firm's price target on Lantronix to $10 from $7 and keeps a Buy rating on the shares following Q2 results. The firm highlights continued momentum and multi-year visibility in the company's drone business. The company raised expectations for its drone business in FY26 and expects its drone business to more than double in FY27 vs FY26.

Lake Street

Buy

maintain

$6 -> $8

2025-12-11

Reason

Lake Street

Price Target

$6 -> $8

2025-12-11

maintain

Buy

Reason

Lake Street raised the firm's price target on Lantronix to $8 from $6 and keeps a Buy rating on the shares. The firm continues to think Lantronix is "emerging as an under-the-radar way to play the drone sector" and sees continued momentum in the drone market, at the Tier-1 Wireless operator for monitoring cell site generators, and in the out-of-band management space helping to drive the top line this year and next, the analyst tells investors.

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LTRX Should I Buy

LTRX Should I Buy

Should You Buy Lantronix Inc (LTRX) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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