We recently published a list of 10 Stocks Insiders Are Buying This Year. In this article, we are going to take a look at where Lakeland Industries, Inc. (NASDAQ:LAKE) stands against other stocks that insiders are buying this year.
Even though this is just the beginning of the year, we thought it might be interesting to see what stocks have attracted the most attention from insiders. Why? Sometimes, when executives or insiders acquire shares early in the year, it could mean that they expect strong financial results or positive company developments.
On the other hand, insiders sometimes sell shares at the beginning of the year for tax reasons. For example, they can sell shares to harvest tax loss or to balance out gains/losses from the previous year.
Both insider selling and buying can be driven by various motives, however, it’s important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
To identify the 10 stocks insiders are buying this year we used Insider Monkey’s insider trading stock screener and looked for stocks with at least five insiders buying since the beginning of the year. With each stock, we note the number of insiders who recently bought shares.
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A woman working on a sewing machine, producing a lab coat.
Lakeland Industries, Inc. (NASDAQ:LAKE)
Number of Insiders Buying: 7
Lakeland Industries, Inc. (NASDAQ:LAKE) is a global manufacturer of protective clothing for industry, healthcare, and first responders, and one of 10 stocks insiders have been buying this year. The company produces and sells a plethora of industrial protective clothing and accessories for the industrial and public protective clothing market. It supplies end users across various industries, including automobile, transportation, steel, glass, chemical/petrochemical, high technology electronics manufacturers, construction, smelting, cleanroom, janitorial, pharmaceutical, etc. Among its customers are also federal, state and local governmental agencies and departments, such as fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control.
In December, Lakeland (NASDAQ:LAKE) acquired Veridian, a provider of firefighter protective apparel, including fire and rescue garments, gloves and boots, with an annual revenue of around $21 million, in an all-cash transaction valued at approximately $25 million.
In January, the company announced a proposed underwritten public offering of shares of its common stock. Lakeland (NASDAQ:LAKE) said it expects to grant to the underwriters of the offering a 45-day option to purchase up to an additional 15% of the shares of its common stock in the underwritten public offering on the same terms and conditions.
Under the offering, seven insiders, including the President, CEO and Exec. Chair, CFO, acquired a total of $297,174 worth of Lakeland shares at an average price of $22.18 per share. Out of those seven insiders, the company’s President, CEO and Exec. Chair, M. James Jenkins, bought 1,136 shares worth $24,992, increasing his holdings to 66,830 shares.
Two analysts have an average “Strong Buy” rating on the stock, with a price target of $27.5, which represents an increase of 14.44% from the latest price, as per data from StockAnalysis. The stock is currently trading at $24.03, having lost 5.95% per share year-to-date, and having gained 76.69% over the past 12 months.
Overall, LAKE ranks 6th on our list of stocks that insiders are buying this year. While we acknowledge the potential of LAKE, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LAKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
