Lennox International (NYSE:LII) Shares Gap Down – Here’s Why

Lennox International, Inc. (NYSE:LII)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $544.11, but opened at $491.00. Lennox International shares last traded at $440.1480, with a volume of 380,137 shares changing hands.

Key Lennox International News

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

• Positive Sentiment: Lennox reported second-quarter revenue of approximately $1.5 billion, up 3% year over year, while GAAP EPS of $7.72 exceeded analysts’ expectations of $7.67. Commercial-related strength and pricing actions provided some support. Lennox Reports 2026 Second Quarter Results
• Positive Sentiment: Royal Bank of Canada lowered its price target from $579 to $469 but retained a “sector perform” rating. The revised target still implies potential upside from the stock’s current level, although the sharp reduction signals diminished near-term confidence. Benzinga analyst update
• Neutral Sentiment: The broader HVAC industry is experiencing a selloff tied to disappointing earnings, margin concerns and questions about data-center-related demand, adding sector-wide pressure to LII. HVAC stocks selloff
• Negative Sentiment: Lennox cut its full-year 2026 EPS outlook to $23.00–$24.00 from $23.50–$25.00, below the roughly $24.43 analyst consensus. The lowered outlook is the primary catalyst weighing on the shares. Lennox outlook reduction
• Negative Sentiment: Home Comfort Solutions revenue declined 7%, reflecting weak residential demand and new-construction headwinds. Segment margins fell 130 basis points as lower volumes, distribution costs, inflation and factory under-absorption offset pricing benefits and tariff refunds. Quarterly revenue also missed expectations of about $1.56 billion, and EPS declined from $7.82 a year earlier. LII Q2 analysis

Analysts Set New Price Targets

LII has been the subject of several recent analyst reports. BNP Paribas Exane assumed coverage on Lennox International in a report on Tuesday, April 14th. They set a “neutral” rating and a $535.00 price objective for the company. Weiss Ratings raised shares of Lennox International from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, June 18th. Vertical Research upgraded shares of Lennox International from a “hold” rating to a “buy” rating and set a $600.00 target price for the company in a research report on Thursday, April 30th. Wells Fargo & Company boosted their price target on shares of Lennox International from $480.00 to $555.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 30th. Finally, Royal Bank Of Canada cut their price target on shares of Lennox International from $579.00 to $469.00 and set a “sector perform” rating for the company in a research note on Thursday. Four analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $546.55.

Lennox International Price Performance

The firm has a fifty day moving average of $529.48 and a two-hundred day moving average of $516.03. The company has a current ratio of 1.57, a quick ratio of 0.64 and a debt-to-equity ratio of 0.89. The company has a market capitalization of $14.56 billion, a PE ratio of 18.91, a PEG ratio of 1.68 and a beta of 1.16.

Lennox International (NYSE:LII) last announced its quarterly earnings results on Wednesday, July 29th. The construction company reported $7.72 EPS for the quarter, topping analysts’ consensus estimates of $7.67 by $0.05. Lennox International had a return on equity of 66.42% and a net margin of 14.61%.The business had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.56 billion. During the same period in the previous year, the firm earned $7.82 EPS. The business’s quarterly revenue was up 3.0% on a year-over-year basis. Lennox International has set its FY 2026 guidance at 23.000-24.000 EPS. Research analysts anticipate that Lennox International, Inc. will post 23.89 EPS for the current fiscal year.

Lennox International Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were paid a $1.36 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This is a positive change from Lennox International’s previous quarterly dividend of $1.30. This represents a $5.44 annualized dividend and a dividend yield of 1.3%. Lennox International’s payout ratio is presently 24.48%.

Insider Buying and Selling

In other Lennox International news, CAO Chris Kosel sold 971 shares of the stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $544.80, for a total transaction of $529,000.80. Following the completion of the sale, the chief accounting officer owned 1,090 shares of the company’s stock, valued at $593,832. This represents a 47.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 9.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lennox International

Hedge funds have recently modified their holdings of the company. Root Financial Partners LLC raised its stake in shares of Lennox International by 137.9% during the first quarter. Root Financial Partners LLC now owns 69 shares of the construction company’s stock valued at $32,000 after acquiring an additional 40 shares during the last quarter. Huntington National Bank grew its stake in shares of Lennox International by 51.8% in the fourth quarter. Huntington National Bank now owns 85 shares of the construction company’s stock worth $41,000 after purchasing an additional 29 shares during the last quarter. MUFG Securities EMEA plc bought a new stake in shares of Lennox International in the second quarter worth about $54,000. Torren Management LLC purchased a new position in Lennox International during the 4th quarter valued at about $70,000. Finally, Oslo Pensjonsforsikring AS purchased a new position in Lennox International during the 1st quarter valued at about $118,000. Hedge funds and other institutional investors 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.