Philip Brace, a director at LANTRONIX INC (NASDAQ:LTRX), a company specializing in computer communications equipment, has made a significant investment in the company's stock. On May 3, 2024, Brace purchased 20,000 shares of Lantronix (NASDAQ:LTRX)'s common stock at an average price of $3.59 per share, totaling approximately $71,800.
The transaction was executed over multiple trades with prices ranging from $3.58 to $3.61, reflecting a weighted average price as reported in the SEC filing. This purchase has increased Brace's direct and indirect holdings in the company, which now amount to 47,000 shares held indirectly by the Brace Family Trust and 4,186 shares held directly.
It is notable that Brace's direct holdings in Lantronix are separate from the shares held by his son, which amount to 24 shares. Brace has explicitly disclaimed beneficial ownership of these securities, as indicated in the footnotes of the filing, and this report is not to be taken as an admission of beneficial ownership for Section 16 or any other purposes.
Investors often keep an eye on insider transactions as they can provide insights into the executives' confidence in the company's future performance. Brace's recent purchase could be interpreted as a positive signal to the market, showcasing a director's growing stake in the firm he helps to oversee.
Lantronix, headquartered in Irvine, California, continues to be at the forefront of the computer communications industry. With a fiscal year ending on June 30, the company's stock transactions by its directors and officers are closely monitored by investors for indications of the company's internal confidence and potential future direction.
InvestingPro Insights
Philip Brace's recent acquisition of LANTRONIX INC (NASDAQ:LTRX) shares coincides with some intriguing financial metrics and expert analysis that could help investors understand the company's current position and future prospects. Brace's confidence in Lantronix is mirrored by the company's solid revenue growth, with recent data showing a notable increase of 24.93% in quarterly revenue growth as of Q3 2024.
The company's valuation metrics present a mixed picture. Despite a negative P/E Ratio of -20.63, indicating that the company has not been profitable over the last twelve months, Lantronix is trading at a Price/Book ratio of 1.75, which suggests that the market values the company at a reasonable level in relation to its book value. Moreover, Lantronix has demonstrated a significant EBITDA growth of 300.4% in the same period, reflecting potential operational efficiency improvements or increased profitability of core business activities.
Regarding stock performance, Lantronix has experienced substantial volatility, with a 3-month price total return of -38.62% as of the latest data. However, it's worth noting that there has been a strong return over the last month, with a price total return of 14.83%, which could be indicative of a positive market sentiment shift. Investors considering Lantronix as part of their portfolio may find these insights particularly relevant, especially when weighed against the director's stock purchase.
Two InvestingPro Tips for Lantronix that could be pertinent to investors are the expectation of net income growth this year and the fact that the company's liquid assets exceed its short-term obligations. This suggests that Lantronix is in a good position to cover its immediate liabilities and is anticipated to improve its profitability, which could be reassuring for potential investors.
For those seeking a deeper dive into Lantronix's financial health and future outlook, InvestingPro offers additional insights. There are 12 more InvestingPro Tips available, which could provide further clarity on the company's performance and potential investment value. To access these tips, visit: https://www.investing.com/pro/LTRX and remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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