Lennox International (NYSE:LII) Shares Down 5.9% - Time to Sell?

Key Points

• Shares fell 5.9% on Wednesday to about $489.53 (from a $520.42 close) on unusually light volume — 80,041 shares versus an average of 470,541.
• Analyst views are mixed: Wolfe Research raised multi‑year earnings forecasts but trimmed several near‑term quarters, BNP Paribas initiated coverage with a neutral $535 target, and the Street consensus remains a Hold.
• Lennox missed the latest quarter (EPS $4.45 vs. $4.76 expected) with revenue down 11.2% year‑over‑year; management set FY2026 guidance of $23.50–$25.00 EPS and announced a $1.30 quarterly dividend (~1.1% yield).

Lennox International, Inc. (NYSE:LII - Get Free Report)'s stock price traded down 5.9% during trading on Wednesday . The stock traded as low as $489.31 and last traded at $489.5310. 80,041 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 470,541 shares. The stock had previously closed at $520.42.

Key Lennox International News

Here are the key news stories impacting Lennox International this week:

• Positive Sentiment: Wolfe Research raised several multi‑period earnings forecasts (FY2026 and FY2027) and boosted a number of quarterly EPS estimates (notably Q1 2026, Q4 2026 and Q1 2027), signaling stronger medium‑term earnings potential. Wolfe Research notes
• Neutral Sentiment: BNP Paribas Exane initiated coverage on LII with a "neutral" rating and a $535 price target — about mid‑single‑digit to low‑double‑digit upside from current levels — which provides measured support but not a catalyst for a strong buy case. BNP Paribas initiation
• Neutral Sentiment: Aggregated analyst sentiment remains cautious: LII carries an average "Hold" consensus from analysts, reinforcing a market view that upside is limited without clearer demand improvement or margin beats. Analyst consensus: Hold
• Negative Sentiment: Wolfe also trimmed several near‑term quarter forecasts (notably cuts to Q2 2026 and Q2 2027 estimates), highlighting potential softness or timing risks in the company's quarter‑to‑quarter recovery. Wolfe Research notes (cuts)

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. JPMorgan Chase & Co. upped their target price on shares of Lennox International from $493.00 to $541.00 and gave the company an "underweight" rating in a research note on Friday, January 16th. BNP Paribas Exane started coverage on shares of Lennox International in a research note on Tuesday. They issued a "neutral" rating and a $535.00 target price for the company. Weiss Ratings reiterated a "hold (c+)" rating on shares of Lennox International in a report on Thursday, January 22nd. Morgan Stanley reduced their price target on shares of Lennox International from $475.00 to $450.00 and set an "underweight" rating for the company in a report on Monday, February 2nd. Finally, Wells Fargo & Company reduced their price target on shares of Lennox International from $560.00 to $480.00 and set an "equal weight" rating for the company in a report on Wednesday, April 1st. Four investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $563.67.

Lennox International Price Performance

The company's fifty day moving average is $510.42 and its 200 day moving average is $506.26. The firm has a market cap of $16.84 billion, a price-to-earnings ratio of 21.66, a PEG ratio of 1.99 and a beta of 1.21. The company has a quick ratio of 0.63, a current ratio of 1.60 and a debt-to-equity ratio of 0.98.

Lennox International (NYSE:LII - Get Free Report) last announced its earnings results on Wednesday, January 28th. The construction company reported $4.45 EPS for the quarter, missing the consensus estimate of $4.76 by ($0.31). Lennox International had a return on equity of 80.23% and a net margin of 15.13%.The business had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the previous year, the company posted $5.60 EPS. The business's revenue for the quarter was down 11.2% compared to the same quarter last year. Lennox International has set its FY 2026 guidance at 23.500-25.000 EPS. On average, equities research analysts predict that Lennox International, Inc. will post 22.94 EPS for the current year.

Lennox International Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be issued a dividend of $1.30 per share. The ex-dividend date is Tuesday, March 31st. This represents a $5.20 annualized dividend and a yield of 1.1%. Lennox International's dividend payout ratio is presently 23.38%.

Insider Buying and Selling

In related news, Director Todd J. Teske sold 700 shares of the stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $533.45, for a total transaction of $373,415.00. Following the completion of the transaction, the director owned 6,881 shares in the company, valued at approximately $3,670,669.45. This represents a 9.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Shane D. Wall sold 100 shares of the stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $540.01, for a total transaction of $54,001.00. Following the transaction, the director owned 2,205 shares of the company's stock, valued at $1,190,722.05. The trade was a 4.34% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 1,054 shares of company stock worth $563,687. 10.40% of the stock is owned by insiders.

Institutional Trading of Lennox International

A number of large investors have recently added to or reduced their stakes in LII. Ameriprise Financial Inc. lifted its stake in Lennox International by 296.0% in the second quarter. Ameriprise Financial Inc. now owns 71,815 shares of the construction company's stock valued at $41,168,000 after acquiring an additional 53,679 shares during the last quarter. Tudor Investment Corp ET AL acquired a new stake in Lennox International in the third quarter valued at $20,847,000. Bank of New York Mellon Corp lifted its stake in Lennox International by 10.2% in the fourth quarter. Bank of New York Mellon Corp now owns 203,539 shares of the construction company's stock valued at $98,835,000 after acquiring an additional 18,901 shares during the last quarter. SG Americas Securities LLC lifted its stake in Lennox International by 55.6% in the third quarter. SG Americas Securities LLC now owns 49,456 shares of the construction company's stock valued at $26,180,000 after acquiring an additional 17,673 shares during the last quarter. Finally, Danske Bank A S acquired a new stake in Lennox International in the third quarter valued at $7,249,000. Institutional investors and hedge funds own 67.07% of the company's stock.

About Lennox International

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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