Can You Imagine How Chuffed Lantronix's (NASDAQ:LTRX) Shareholders Feel About Its 235% Share Price Gain?
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. For example, the Lantronix, Inc. (NASDAQ:LTRX) share price has soared 235% in the last three years. How nice for those who held the stock! Also pleasing for shareholders was the 25% gain in the last three months. But this move may well have been assisted by the reasonably buoyant market (up 10% in 90 days).
View our latest analysis for Lantronix
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Lantronix became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Lantronix has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Lantronix stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that Lantronix shareholders have received a total shareholder return of 51% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 15% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. If you would like to research Lantronix in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
Of course Lantronix may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
