Lakeland Industries Inc. (NASDAQ: LAKE) – Suitable For Long Term Buy?


    Renaissance Technologies LLC recently announced the acquisition of new stake in Lakeland Industries Inc. (NASDAQ:LAKE). The institutional investor has increased its shareholding in the Consumer Cyclical company by 14.46% to 0.64 million shares with purchase of 80910.0 shares. This fresh investment now brings its stake to 8.03% valued currently at $9.29 million. In addition, Dimensional Fund Advisors LP raised its holdings by 3279.0 to 0.61 million shares. And Wellington Management Co. LLP has lifted its position to 0.59 million shares – to 0.59 million shares.

    With over 0.74 million Lakeland Industries Inc. (LAKE) shares trading Tuesday and a closing price of $24.21 on the day, the dollar volume was approximately $18.01 million. The shares have shown a positive weekly performance of 10.85% and its price on 07/07/20 gained nearly 3.59%. Currently, there are 7.97M common shares owned by the public and among those 7.74M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 3 analysts who have offered their price forecasts for LAKE have a consensus price objective of $28.33. The analysts have set the share’s price value over the next 12 months at a high of $31.00 and a low of $24.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Lakeland Industries Inc. stock is 2.00 for the next 12 months. The average price target is 14.54% above its last price level and an upside to the estimated low will see the stock lose -0.88% over that period. But an upside of 21.9% will see the stock hit the forecast high price target while mean target price for the stock is $30.00.

    Insiders at the company have transacted a total of 27 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 17 of these insider trades were purchases, accounting for 16,539 shares. Insider sales of the common stock occurred on 10 occasions, with total insider shares sold totaling 350,090 shares.

    The top 3 mutual fund holders in Lakeland Industries Inc. are Vanguard Total Stock Market Index, DFA US Small Cap Value Portfolio, and DFA US Small Cap Portfolio. Vanguard Total Stock Market Index owns 0.36 million shares of the company’s stock, all valued at over $5.18 million. The company bought an additional 35271.0 shares recently to bring their total holdings to about 4.48% of the shares outstanding. DFA US Small Cap Value Portfolio has total holdings of 0.15 million shares valued at over $2.1 million and representing 1.82% of the shares outstanding. DFA US Small Cap Portfolio has total holdings to over 0.11 million shares at a value of $1.56 million. DFA US Small Cap Portfolio now owns shares totaling to 1.35% of the shares outstanding.

    Shares of Lakeland Industries Inc. (NASDAQ: LAKE) opened at $23.48, up $0.11 from a prior closing price of $23.37. However, the script later closed the day at $24.21, up 3.59%. The company’s stock has a 5-day price change of 10.85% and 44.97% over the past three months. LAKE shares are trading 124.17% year to date (YTD), with the 12-month market performance up to 116.16% higher. It has a 12-month low price of $9.70 and touched a high of $28.00 over the same period. Currently, 0.74 million shares have been traded, compared to an average intraday trading volume of 1.09 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 15.13%, 43.99%, and 75.58% respectively.

    Institutional ownership of Lakeland Industries Inc. (NASDAQ: LAKE) shares accounts for 50.90% of the company’s 7.97M shares outstanding. Mutual fund holders own 21.32%, while other institutional holders and individual stakeholders account for 28.20% and 14.40% respectively.

    It has a market capitalization of $196.34M and a beta (3y monthly) value of 0.00. The stock’s trailing 12-month PE ratio is 15.74, while the earnings-per-share (ttm) stands at $1.54. The company has a PEG of 1.57 and a Quick Ratio of 4.10 with the debt-to-equity ratio at 0.01. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.62% over the week and 10.21% over the month.

    Analysts forecast that Lakeland Industries Inc. (LAKE) will achieve an EPS of $0.38 for the current quarter, $0.31 for the next quarter and $1.06 for 2022. The lowest estimate earnings-per-share for the quarter is $0.26 while analysts give the company a high EPS estimate of $0.53. Comparatively, EPS for the current quarter was $0.17 a year ago. Earnings per share for the fiscal year are expected to increase by 128.60%, and -47.60% over the next financial year. EPS should grow at an annualized rate of 10.00% over the next five years, compared to -25.30% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 3 brokerage firm advisors rate Lakeland Industries Inc. (LAKE) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 0 of the 3 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the LAKE, a number of firms have released research notes about the stock. The Benchmark Company stated their Buy rating for the stock in a research note on June 09, 2020. ROTH Capital coverage for the Lakeland Industries Inc. (LAKE) stock in a research note released on April 15, 2020 offered a Buy rating with a price target of $18.50. ROTH Capital was of a view on August 23, 2017 that the stock is Buy, while Singular Research gave the stock Buy rating on February 10, 2016 $17.50. Friedman Billings on their part issued Mkt Perform rating on April 13, 2007.


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