Even if it's not a huge purchase, we think it was good to see that Kevin Palatnik, the Independent Director of Lantronix, Inc. (NASDAQ:LTRX) recently shelled out US$51k to buy stock, at US$2.54 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Lantronix

The Last 12 Months Of Insider Transactions At Lantronix

In the last twelve months, the biggest single purchase by an insider was when President Saleel Awsare bought US$213k worth of shares at a price of US$2.66 per share. So it's clear an insider wanted to buy, at around the current price, which is US$2.70. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Lantronix insiders decided to buy shares at close to current prices.

Lantronix insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Lantronix is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Lantronix Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Lantronix insiders own about US$5.8m worth of shares (which is 5.5% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Lantronix Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Lantronix stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lantronix. While conducting our analysis, we found that Lantronix has 2 warning signs and it would be unwise to ignore them.

But note: Lantronix may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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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.