Lennox International Falls After Cutting 2026 EPS Outlook

Lennox International Inc. (LII) is down 19.0% today. Here is some analysis on what might have caused this price movement.

Analysis: The sharp selloff appears tied mainly to a lower full-year earnings outlook and ongoing weakness in the residential business, even though second-quarter revenue and operating income still increased. Investors also seem to be reacting to margin pressure in Home Comfort Solutions, where lower volumes and under-absorption offset pricing benefits.

Details:

Lennox updated its 2026 earnings-per-share guidance to $23.00 to $24.00, down from the prior $23.50 to $25.00 range.

Second-quarter revenue rose 3% to about $1.5 billion, but adjusted diluted EPS was essentially flat at $7.72, while the market had been looking for roughly $7.66 on about $1.56 billion of revenue.

Home Comfort Solutions revenue fell 7% from a year earlier, and the company described residential market conditions as challenging, with new construction remaining a meaningful headwind.

Home Comfort Solutions margin fell 130 basis points as lower sales volumes, distribution costs, inflation, and factory under-absorption weighed on profitability, even with pricing actions and tariff refunds helping offset part of the pressure.

Sources:

Lennox, SEC, Benzinga

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$LII Insider Trading Activity

$LII insiders have traded $LII stock on the open market 4 times in the past 6 months. Of those trades, 0 have been purchases and 4 have been sales.

Here’s a breakdown of recent trading of $LII stock by insiders over the last 6 months:

CHRIS KOSEL (VP-Corp Controller and CAO) has made 0 purchases and 2 sales selling 1,225 shares for an estimated $665,271.
TODD J TESKE sold 700 shares for an estimated $373,415
SHANE D WALL sold 100 shares for an estimated $54,001

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$LII Hedge Fund Activity

We have seen 300 institutional investors add shares of $LII stock to their portfolio, and 277 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

VIKING GLOBAL INVESTORS LP added 951,108 shares (+153.1%) to their portfolio in Q1 2026, for an estimated $441,437,756
UBS GROUP AG added 202,835 shares (+105.8%) to their portfolio in Q1 2026, for an estimated $94,141,808
NEUBERGER BERMAN GROUP LLC added 166,303 shares (+4150.3%) to their portfolio in Q1 2026, for an estimated $77,186,211
JUNTO CAPITAL MANAGEMENT LP removed 158,042 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $73,352,033
BANK OF AMERICA CORP /DE/ added 145,215 shares (+81.6%) to their portfolio in Q1 2026, for an estimated $67,398,637
LORD, ABBETT & CO. LLC added 130,336 shares (+inf%) to their portfolio in Q1 2026, for an estimated $60,492,847
NORDEA INVESTMENT MANAGEMENT AB removed 100,149 shares (-96.6%) from their portfolio in Q1 2026, for an estimated $46,482,155

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$LII Analyst Ratings

Wall Street analysts have issued reports on $LII in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Barclays issued a "Overweight" rating on 04/30/2026

To track analyst ratings and price targets for $LII, check out Quiver Quantitative's $LII forecast page.

$LII Price Targets

Multiple analysts have issued price targets for $LII recently. We have seen 6 analysts offer price targets for $LII in the last 6 months, with a median target of $567.0.

Here are some recent targets:

Julian Mitchell from Barclays set a target price of $597.0 on 04/30/2026
Joseph O'Dea from Wells Fargo set a target price of $555.0 on 04/30/2026
Deane Dray from RBC Capital set a target price of $579.0 on 04/30/2026
Andrew Buscaglia from BNP Paribas set a target price of $535.0 on 04/14/2026
Noah Kaye from Oppenheimer set a target price of $645.0 on 03/05/2026
Betsy Graseck from Morgan Stanley set a target price of $450.0 on 02/02/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.