President Paul Pickle Just Bought 3.1% More Shares In Lantronix, Inc. (NASDAQ:LTRX)

By
Simply Wall St
Published
November 23, 2021
NasdaqCM:LTRX
Source: Shutterstock

Potential Lantronix, Inc. (NASDAQ:LTRX) shareholders may wish to note that the President, Paul Pickle, recently bought US$100k worth of stock, paying US$7.71 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.1%.

View our latest analysis for Lantronix

Lantronix Insider Transactions Over The Last Year

Notably, that recent purchase by President Paul Pickle was not the only time they bought Lantronix shares this year. Earlier in the year, they paid US$4.96 per share in a US$198k purchase. Even though the purchase was made at a significantly lower price than the recent price (US$7.68), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Paul Pickle purchased 53.00k shares over the year. The average price per share was US$5.63. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqCM:LTRX Insider Trading Volume November 23rd 2021

Lantronix is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Lantronix

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.9% of Lantronix shares, worth about US$10m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Lantronix Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Lantronix insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lantronix. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Lantronix.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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