LAKE Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Lakeland Industries Inc (LAKE) is not a good buy at the moment for a beginner, long-term investor with $50,000-$100,000 to invest. The company is facing significant financial challenges, negative analyst sentiment, and legal investigations, which outweigh the minor positive catalysts. The lack of strong trading signals and the absence of recent congress trading data further support a hold recommendation.
The MACD is positive but contracting, indicating a weakening bullish momentum. The RSI is neutral at 59.989, and moving averages are converging, suggesting no clear trend. The stock is trading near its pivot level of 9.787, with resistance at 10.325 and support at 9.25.
The company recently fulfilled an urgent order for the Milano Cortina 2026 Olympics, leading to additional orders from the Italian Ministry of the Interior. This could indicate potential short-term revenue boosts.
The company missed Q3 expectations, withdrew guidance, suspended its dividend, terminated its CFO, and is facing significant end-market uncertainties. Additionally, Rosen Law Firm has initiated investigations and a potential class action lawsuit for misleading business information, which caused a 38.97% stock drop.
In Q3 2026, revenue increased by 3.99% YoY to $47,586,000. However, net income dropped to -$15,955,000, down -18,652.33% YoY. EPS fell to -1.64, down -16,500.00% YoY, and gross margin decreased to 28.65%, down -29.36% YoY. These figures indicate severe profitability challenges.
Analysts have downgraded the stock. DA Davidson downgraded it to Neutral from Buy with a price target of $14 (down from $20), citing missed expectations, guidance withdrawal, and credibility issues. Roth Capital lowered its price target to $19 from $27 but maintained a Buy rating, noting challenges in fire sales and LATAM markets.
