Lennox International (NYSE:LII) Shares Gap Up Following Strong Earnings

Lennox International, Inc. (NYSE:LII)’s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $619.97, but opened at $679.44. Lennox International shares last traded at $673.93, with a volume of 234,077 shares trading hands.

The construction company reported $7.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.90 by $0.92. The firm had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.48 billion. Lennox International had a net margin of 14.96% and a return on equity of 106.05%. The firm’s quarterly revenue was up 3.4% on a year-over-year basis. During the same period in the prior year, the company posted $6.83 earnings per share.

Lennox International Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Friday, May 30th were issued a $1.30 dividend. The ex-dividend date of this dividend was Monday, June 30th. This is a boost from Lennox International’s previous quarterly dividend of $1.15. This represents a $5.20 annualized dividend and a yield of 0.79%. Lennox International’s dividend payout ratio is currently 23.17%.

Lennox International announced that its board has initiated a stock repurchase plan on Thursday, May 22nd that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the construction company to purchase up to 5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. The Goldman Sachs Group boosted their target price on shares of Lennox International from $619.00 to $691.00 and gave the company a “buy” rating in a research note on Tuesday, July 8th. UBS Group lowered their target price on shares of Lennox International from $625.00 to $570.00 and set a “neutral” rating for the company in a research note on Thursday, April 24th. Oppenheimer boosted their target price on shares of Lennox International from $600.00 to $650.00 and gave the company an “outperform” rating in a research note on Thursday, July 17th. Barclays lowered their target price on shares of Lennox International from $702.00 to $696.00 and set an “overweight” rating for the company in a research note on Thursday, April 24th. Finally, Robert W. Baird boosted their target price on shares of Lennox International from $600.00 to $668.00 and gave the company a “neutral” rating in a research note on Thursday, July 17th. Four equities research analysts have rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $604.67.

Insider Activity at Lennox International

In other news, CAO Chris Kosel sold 509 shares of the company’s stock in a transaction dated Wednesday, May 7th. The shares were sold at an average price of $568.05, for a total transaction of $289,137.45. Following the completion of the transaction, the chief accounting officer owned 1,582 shares in the company, valued at approximately $898,655.10. This represents a 24.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 9.73% of the company’s stock.

Institutional Investors Weigh In On Lennox International

Institutional investors have recently bought and sold shares of the stock. City Holding Co. acquired a new stake in Lennox International in the first quarter worth about $35,000. Sentry Investment Management LLC acquired a new stake in Lennox International in the 1st quarter valued at about $43,000. Thurston Springer Miller Herd & Titak Inc. lifted its holdings in Lennox International by 175.9% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 80 shares of the construction company’s stock valued at $46,000 after acquiring an additional 51 shares during the last quarter. Bessemer Group Inc. lifted its holdings in Lennox International by 50.8% in the 4th quarter. Bessemer Group Inc. now owns 98 shares of the construction company’s stock valued at $60,000 after acquiring an additional 33 shares during the last quarter. Finally, Steph & Co. acquired a new stake in Lennox International in the 2nd quarter valued at about $80,000. Institutional investors and hedge funds own 67.07% of the company’s stock.

Lennox International Stock Up 6.7%

The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.74 and a current ratio of 1.43. The company has a market capitalization of $23.48 billion, a price-to-earnings ratio of 29.48, a P/E/G ratio of 2.15 and a beta of 1.13. The stock’s fifty day simple moving average is $578.01 and its two-hundred day simple moving average is $584.13.

Lennox International Company Profile

Lennox International Inc, together with its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. The Home Comfort Solutions segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, and replacement parts and supplies; residential heating, ventilation, cooling equipment, and air conditioning; and evaporator coils and unit heaters under Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Merit Series, Comfort Sync, Healthy Climate, iComfort, ComfortSense, and Lennox Stores name.