Lennox International, Inc. (NYSE:LII) Sees Significant Decline in Short Interest

Key Points

• Short interest fell 21.7% in April to 1,560,644 shares (about 5.0% of the float) with a days-to-cover of 3.5, signaling a sizable reduction in bets against the stock.
• Lennox missed quarterly earnings, reporting $4.45 EPS versus a $4.76 consensus and seeing revenue decline 11.2% year-over-year.
• The company pays a quarterly dividend of $1.30 (annualized $5.20, yield 1.0%, payout ratio 23.38%), while analysts hold a consensus "Hold" rating with a $563.67 price target.

Lennox International, Inc. (NYSE:LII - Get Free Report) was the target of a large decrease in short interest in the month of April. As of April 15th, there was short interest totaling 1,560,644 shares, a decrease of 21.7% from the March 31st total of 1,992,250 shares. Based on an average daily volume of 444,716 shares, the days-to-cover ratio is presently 3.5 days. Approximately 5.0% of the shares of the stock are sold short.

Lennox International Stock Performance

NYSE LII opened at $497.01 on Wednesday. The company has a market cap of $17.31 billion, a P/E ratio of 22.35, a P/E/G ratio of 1.93 and a beta of 1.21. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.63 and a current ratio of 1.60. The business's 50 day moving average price is $499.12 and its 200-day moving average price is $502.83. Lennox International has a fifty-two week low of $434.06 and a fifty-two week high of $689.44.

Lennox International (NYSE:LII - Get Free Report) last released its earnings results on Wednesday, January 28th. The construction company reported $4.45 earnings per share for the quarter, missing the consensus estimate of $4.76 by ($0.31). Lennox International had a net margin of 15.13% and a return on equity of 80.23%. The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the prior year, the firm posted $5.60 EPS. The business's revenue for the quarter was down 11.2% compared to the same quarter last year. Sell-side analysts predict that Lennox International will post 24.25 earnings per share for the current year.

Lennox International Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were issued a dividend of $1.30 per share. The ex-dividend date was Tuesday, March 31st. This represents a $5.20 dividend on an annualized basis and a yield of 1.0%. Lennox International's payout ratio is presently 23.38%.

Insiders Place Their Bets

In other news, CAO Chris Kosel sold 254 shares of the company's stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $536.50, for a total transaction of $136,271.00. Following the sale, the chief accounting officer directly owned 1,090 shares of the company's stock, valued at $584,785. This represents a 18.90% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Shane D. Wall sold 100 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $540.01, for a total value of $54,001.00. Following the sale, the director directly owned 2,205 shares in the company, valued at $1,190,722.05. This trade represents a 4.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,054 shares of company stock valued at $563,687 in the last quarter. 9.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lennox International

Large investors have recently bought and sold shares of the business. Root Financial Partners LLC purchased a new position in Lennox International during the 3rd quarter valued at $28,000. Huntington National Bank boosted its holdings in Lennox International by 51.8% during the 4th quarter. Huntington National Bank now owns 85 shares of the construction company's stock valued at $41,000 after acquiring an additional 29 shares during the period. Covestor Ltd boosted its holdings in Lennox International by 217.2% during the 3rd quarter. Covestor Ltd now owns 92 shares of the construction company's stock valued at $48,000 after acquiring an additional 63 shares during the period. MUFG Securities EMEA plc bought a new stake in Lennox International during the 2nd quarter valued at $54,000. Finally, Bessemer Group Inc. raised its position in Lennox International by 52.8% during the 3rd quarter. Bessemer Group Inc. now owns 110 shares of the construction company's stock valued at $59,000 after purchasing an additional 38 shares in the last quarter. Hedge funds and other institutional investors own 67.07% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on LII shares. Morgan Stanley decreased their price objective on Lennox International from $475.00 to $450.00 and set an "underweight" rating on the stock in a report on Monday, February 2nd. Wells Fargo & Company decreased their price objective on Lennox International from $560.00 to $480.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 1st. JPMorgan Chase & Co. upped their price objective on Lennox International from $493.00 to $541.00 and gave the stock an "underweight" rating in a report on Friday, January 16th. Barclays decreased their price objective on Lennox International from $667.00 to $600.00 and set an "overweight" rating on the stock in a report on Wednesday, April 1st. Finally, Wall Street Zen raised Lennox International from a "sell" rating to a "hold" rating in a report on Saturday, March 7th. Four investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Lennox International has a consensus rating of "Hold" and a consensus price target of $563.67.

Lennox International Company Profile

Lennox International Inc is a global manufacturer of climate control products and services, principally serving residential and commercial heating, ventilation and air conditioning (HVAC) markets. The company designs, engineers and produces a range of products including furnaces, air conditioners, heat pumps, air handlers, packaged rooftop units and related controls and indoor air quality equipment. Lennox also supplies aftermarket parts and accessories and supports its product lines with technical service, training and warranty programs for dealer and distribution partners.

Originally founded in 1895 by Dave Lennox, the company has grown from its early roots into a multinational business with operations concentrated in North America and a presence in other international markets.

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