LSI Industries (NASDAQ:LYTS) Stock Price Down 6.2% – Time to Sell?

Shares of LSI Industries Inc. (NASDAQ:LYTS) dropped 6.2% during mid-day trading on Friday . The stock traded as low as $21.95 and last traded at $21.81. Approximately 84,512 shares were traded during mid-day trading, a decline of 38% from the average daily volume of 135,937 shares. The stock had previously closed at $23.25.

Key Headlines Impacting LSI Industries

Here are the key news stories impacting LSI Industries this week:

• Positive Sentiment: Quarterly beat — LSI reported EPS of $0.20 versus consensus $0.17 and revenue of $147.0M vs. $140.1M, reflecting better-than-expected profitability and top-line strength. Zacks: LYTS Q2 results
• Positive Sentiment: Business momentum: management highlighted strong lighting segment growth and solid cash/pass-through performance on the earnings call, which supports medium-term revenue reacceleration expectations. Yahoo Finance: Q2 call highlights
• Positive Sentiment: Analyst upgrade/target lift — Canaccord raised its price target to $27 and maintains a Buy rating, implying notable upside from current levels. This adds third?party conviction to the earnings beat. The Fly: price target raise
• Positive Sentiment: Dividend resumed/maintained — Company declared a $0.05 quarterly dividend (small yield ~0.9%), which supports income-focused holders and signals board confidence. (Company announcement)
• Neutral Sentiment: Full call transcripts and slides are available for detailed review if you want management commentary on backlog, margins and segment trends. InsiderMonkey: call transcript
• Negative Sentiment: Mixed underlying momentum — while lighting grew, management and coverage notes pointed to broadly flat sales in parts of the business, which can cap near-term upside until growth is more broad?based. TipRanks: call highlights
• Negative Sentiment: Valuation and positioning — LYTS trades at a mid?20s P/E (~27.3) and offers a small yield; investors may be taking profits after recent gains, making the stock vulnerable to short?term pullbacks despite the beat. (Market data)

Wall Street Analysts Forecast Growth

LYTS has been the topic of a number of recent research reports. Wall Street Zen lowered shares of LSI Industries from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 15th. Canaccord Genuity Group boosted their target price on LSI Industries from $25.00 to $27.00 and gave the stock a “buy” rating in a report on Friday. Zacks Research raised LSI Industries from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 4th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of LSI Industries in a research note on Monday, December 29th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, LSI Industries currently has a consensus rating of “Moderate Buy” and an average price target of $28.33.

LSI Industries Trading Down 5.8%

The business has a fifty day moving average price of $18.83 and a two-hundred day moving average price of $20.30. The company has a current ratio of 2.19, a quick ratio of 1.36 and a debt-to-equity ratio of 0.20. The firm has a market capitalization of $681.15 million, a PE ratio of 27.39 and a beta of 0.18.

LSI Industries (NASDAQ:LYTS) last announced its earnings results on Thursday, January 22nd. The construction company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.03. LSI Industries had a net margin of 4.21% and a return on equity of 10.96%. The company had revenue of $147.00 million during the quarter, compared to analyst estimates of $140.11 million. Analysts expect that LSI Industries Inc. will post 0.7 EPS for the current fiscal year.

LSI Industries Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, February 10th. Investors of record on Monday, February 2nd will be issued a $0.05 dividend. This represents a $0.20 annualized dividend and a yield of 0.9%. The ex-dividend date is Monday, February 2nd. LSI Industries’s dividend payout ratio (DPR) is 25.00%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Thrivent Financial for Lutherans purchased a new position in LSI Industries during the 3rd quarter valued at about $10,288,000. Royce & Associates LP boosted its stake in shares of LSI Industries by 50.0% in the third quarter. Royce & Associates LP now owns 1,045,225 shares of the construction company’s stock valued at $24,678,000 after purchasing an additional 348,598 shares during the period. Kennedy Capital Management LLC grew its holdings in shares of LSI Industries by 163.7% in the third quarter. Kennedy Capital Management LLC now owns 339,495 shares of the construction company’s stock valued at $8,015,000 after purchasing an additional 210,728 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in LSI Industries by 402.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 198,433 shares of the construction company’s stock worth $4,685,000 after buying an additional 158,934 shares during the period. Finally, Archon Capital Management LLC lifted its holdings in LSI Industries by 67.8% during the 2nd quarter. Archon Capital Management LLC now owns 284,872 shares of the construction company’s stock worth $4,846,000 after buying an additional 115,124 shares in the last quarter. 73.91% of the stock is currently owned by hedge funds and other institutional investors.

LSI Industries Company Profile

LSI Industries, Inc (NASDAQ: LYTS) is a diversified manufacturer and distributor of lighting, graphics and building technology products. Headquartered in Cincinnati, Ohio, the company develops energy-efficient LED lighting systems, branded and digital graphic displays, and integrated building technology solutions. Serving customers in the retail, quick-service and convenience store, industrial, hospitality and transportation markets, LSI combines design, engineering and manufacturing capabilities to address both aesthetic and functional needs.

In its lighting segment, LSI offers interior and exterior LED fixtures, canopy lights, high-bay and low-bay systems, and specialized horticultural grow lights.