NEW YORK (TheStreet) -- Shares of hazmat suit manufacturer Lakeland Industries (LAKE) - Get Report plunged 23.35% to $22.23 in morning trading Tuesday after the World Health Organization said the number of new Ebola cases in the hardest-hit areas is declining.
The WHO reported 8,914 suspected or confirmed Ebola cases and 4,447 resultant deaths. This trend is "relatively flat" at approximately 1,000 new cases per week for the last three to four weeks, according to Bruce Aylward, the WHO assistant director-general who oversees the organization's operations in West Africa.
However, the WHO also noted the virus continues to spread throughout a wider geographical region, such as the Ivory Coast border, and continues to spread throughout some capital cities in Africa.
Lakeland makes hazmat suits that healthcare workers use to prevent contracting the virus. The company announced global availability of the suits in September.
More than 3.4 million shares had changed hands as of 9:59 a.m., compared to the average volume of 1,849,610.
Separately, TheStreet Ratings team rates LAKELAND INDUSTRIES INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAKELAND INDUSTRIES INC (LAKE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, LAKE's share price has jumped by 247.45%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- LAKELAND INDUSTRIES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LAKELAND INDUSTRIES INC turned its bottom line around by earning $0.00 versus -$4.88 in the prior year.
- Net operating cash flow has significantly decreased to -$1.90 million or 459.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 109.3% when compared to the same quarter one year ago, falling from $4.17 million to -$0.39 million.
- You can view the full analysis from the report here: LAKE Ratings Report