Lennox International (NYSE:LII) Reaches New 1-Year High Following Strong Earnings

Shares of Lennox International, Inc. (NYSE:LII - Get Free Report) reached a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company traded as high as $689.44 and last traded at $661.48, with a volume of 1168258 shares changing hands. The stock had previously closed at $619.97.

The construction company reported $7.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.90 by $0.92. Lennox International had a net margin of 15.41% and a return on equity of 99.81%. The firm had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same quarter last year, the business earned $6.83 earnings per share. Lennox International's revenue was up 3.4% compared to the same quarter last year.

Lennox International Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Friday, May 30th were given a dividend of $1.30 per share. The ex-dividend date of this dividend was Monday, June 30th. This represents a $5.20 dividend on an annualized basis and a yield of 0.79%. This is a positive change from Lennox International's previous quarterly dividend of $1.15. Lennox International's dividend payout ratio (DPR) is 22.23%.

Lennox International announced that its Board of Directors has initiated a share buyback program on Thursday, May 22nd that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the construction company to reacquire up to 5% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's board believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. Morgan Stanley decreased their target price on shares of Lennox International from $585.00 to $450.00 and set an "underweight" rating on the stock in a research report on Thursday, April 24th. UBS Group cut their price target on shares of Lennox International from $625.00 to $570.00 and set a "neutral" rating on the stock in a research note on Thursday, April 24th. Oppenheimer increased their price target on shares of Lennox International from $650.00 to $730.00 and gave the stock an "outperform" rating in a research note on Thursday. Royal Bank Of Canada increased their price target on shares of Lennox International from $580.00 to $582.00 and gave the stock a "sector perform" rating in a research note on Thursday, April 24th. Finally, JPMorgan Chase & Co. increased their price target on shares of Lennox International from $455.00 to $549.00 and gave the stock an "underweight" rating in a research note on Friday, May 16th. Four analysts have rated the stock with a sell rating, five have given a hold rating and four have given a buy rating to the company's stock. Based on data from MarketBeat, Lennox International presently has an average rating of "Hold" and a consensus target price of $626.50.

Insiders Place Their Bets

In related news, EVP Daniel M. Sessa sold 2,782 shares of Lennox International stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $670.04, for a total transaction of $1,864,051.28. Following the sale, the executive vice president owned 31,574 shares of the company's stock, valued at $21,155,842.96. The trade was a 8.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Chris Kosel sold 509 shares of Lennox International stock in a transaction on Wednesday, May 7th. The stock was sold at an average price of $568.05, for a total transaction of $289,137.45. Following the sale, the chief accounting officer directly owned 1,582 shares in the company, valued at $898,655.10. This trade represents a 24.34% decrease in their position. The disclosure for this sale can be found here. Company insiders own 9.73% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in LII. City Holding Co. acquired a new position in Lennox International during the 1st quarter worth $35,000. Sentry Investment Management LLC acquired a new position in Lennox International during the 1st quarter worth $43,000. Thurston Springer Miller Herd & Titak Inc. grew its holdings in Lennox International by 175.9% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 80 shares of the construction company's stock worth $46,000 after acquiring an additional 51 shares in the last quarter. Bessemer Group Inc. grew its holdings in Lennox International by 50.8% during the 4th quarter. Bessemer Group Inc. now owns 98 shares of the construction company's stock worth $60,000 after acquiring an additional 33 shares in the last quarter. Finally, Steph & Co. acquired a new position in shares of Lennox International in the 2nd quarter valued at about $80,000. 67.07% of the stock is owned by institutional investors and hedge funds.

Lennox International Price Performance

The company's fifty day moving average price is $580.87 and its 200 day moving average price is $585.04. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.74 and a current ratio of 1.41. The firm has a market capitalization of $23.45 billion, a price-to-earnings ratio of 28.26, a price-to-earnings-growth ratio of 2.21 and a beta of 1.13.

About Lennox International

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.