LCI Industries (NYSE:LCII) Shares Gap Up - Still a Buy?

Key Points

• LCI Industries shares opened sharply higher, rising from a prior close of $89.84 to $95.50, with the stock last trading near $95.05.
• Analyst sentiment remains cautious: two analysts rate the stock Buy and eight rate it Hold, producing a consensus Hold rating and an average price target of $113.50.
• The company exceeded quarterly EPS expectations ($2.70 versus $2.58) despite a 12.6% year-over-year revenue decline, and offers a $4.60 annualized dividend yielding approximately 4.8%.

LCI Industries (NYSE:LCII - Get Free Report)'s share price gapped up before the market opened on Wednesday. The stock had previously closed at $89.84, but opened at $95.50. LCI Industries shares last traded at $95.0540, with a volume of 586,713 shares traded.

Wall Street Analysts Forecast Growth

LCII has been the subject of several recent analyst reports. Weiss Ratings cut shares of LCI Industries from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, October 8th. Stifel Nicolaus reiterated a "hold" rating and issued a $80.00 price objective (down from $130.00) on shares of LCI Industries in a research report on Sunday, October 18th. Jefferies Financial Group reissued a "hold" rating and set a $120.00 price target on shares of LCI Industries in a research report on Thursday, August 6th. Zacks Research raised shares of LCI Industries from a "strong sell" rating to a "hold" rating in a research report on Friday, October 9th. Finally, BMO Capital Markets set a $118.00 price target on LCI Industries in a research note on Thursday, August 6th. Two investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $113.50.

LCI Industries Price Performance

The company has a market cap of $2.33 billion, a price-to-earnings ratio of 11.12 and a beta of 1.21. The company's 50-day simple moving average is $90.23 and its 200-day simple moving average is $112.06.

LCI Industries (NYSE:LCII - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $2.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.58 by $0.12. The business had revenue of $1.10 billion for the quarter, compared to analysts' expectations of $1.12 billion. The firm's revenue was down 12.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.39 earnings per share. LCI Industries has set its FY 2026 guidance at 8.250-8.750 EPS. Equities analysts predict that LCI Industries will post 8.37 EPS for the current fiscal year.

LCI Industries Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 4th. Investors of record on Friday, August 21st were given a dividend of $1.15 per share. This represents a $4.60 annualized dividend and a dividend yield of 4.8%. The ex-dividend date of this dividend was Friday, August 21st. LCI Industries's dividend payout ratio is currently 53.49%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Squarepoint Ops LLC boosted its stake in shares of LCI Industries by 32.6% during the 2nd quarter. Squarepoint Ops LLC now owns 88,640 shares of the company's stock worth $9,385,000 after acquiring an additional 21,771 shares in the last quarter. Corient Private Wealth LP acquired a new stake in LCI Industries during the second quarter valued at $1,315,000. Legal & General Group Plc bought a new stake in shares of LCI Industries in the 2nd quarter valued at approximately $6,023,000. Fort Washington Investment Advisors Inc. OH raised its holdings in shares of LCI Industries by 23.7% during the 2nd quarter. Fort Washington Investment Advisors Inc. OH now owns 231,782 shares of the company's stock valued at $24,541,000 after purchasing an additional 44,341 shares in the last quarter. Finally, The Manufacturers Life Insurance Company acquired a new stake in shares of LCI Industries in the second quarter worth about $1,216,000. Institutional investors and hedge funds own 99.71% of the company's stock.

LCI Industries Company Profile

LCI Industries, formerly known as Drew Industries, is a manufacturer and supplier of components and systems used primarily in recreational vehicles (RVs), as well as in the marine, powersports, automotive, and other transportation markets. Through its Lippert business, the company provides products to original equipment manufacturers and serves consumers through replacement and aftermarket channels.

Its product portfolio includes chassis and structural components, axles and suspension systems, slide-out systems, windows, doors, entry steps, awnings, leveling systems, furniture, mattresses, appliances, electronics, and plumbing products.

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