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Should You Hold Your Investment in Lantronix (LTRX)?

Soumya Eswaran
·3-min read

Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy outperformed the benchmark Russell Microcap Index which rose 4.68%. Most of the portfolio holdings of the strategy met or exceeded earnings and revenue expectations in the quarter. Investor sentiments gradually improved as the quarter went on. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Wasatch Micro Cap Value Strategy highlighted stocks like Lantronix, Inc. (NASDAQ:LTRX), in the first quarter 2024 investor letter. Lantronix, Inc. (NASDAQ:LTRX) offers solutions for video surveillance, infotainment systems, and intelligent substations infrastructure. The one-month return of Lantronix, Inc. (NASDAQ:LTRX) was 6.80%, and its shares lost 12.53% of their value over the last 52 weeks. On June 7, 2024, Lantronix, Inc. (NASDAQ:LTRX) stock closed at $3.7700 per share with a market capitalization of $141.677 million.

Wasatch Micro Cap Value Strategy stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) in its first quarter 2024 investor letter:

"Another significant detractor was Lantronix, Inc. (NASDAQ:LTRX), which provides integrated software and application development, software as a service (SaaS) management, intelligent edge computing and a wide range of sensors and trackers. The stock moved higher early in the quarter based on expectations for strong revenues and earnings. But when the numbers were released later in the quarter, the stock plummeted because Lantronix failed to meet expectations. While we were disappointed along with other investors, we note that revenues and earnings did in fact increase—albeit modestly. Considering the attractive valuation currently, we’ve maintained our position in the company."

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Lantronix, Inc. (NASDAQ:LTRX) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Lantronix, Inc. (NASDAQ:LTRX) at the end of the first quarter which was 15 in the previous quarter. While we acknowledge the potential of Lantronix, Inc. (NASDAQ:LTRX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Lantronix, Inc. (NASDAQ:LTRX) and shared best AI penny stocks to invest in. 180 Degree Capital Corp., another investment management firm, highlighted Lantronix, Inc. (NASDAQ:LTRX) in its q1 2024 investor letter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.