In a recent transaction disclosed to the Securities and Exchange Commission, Todd J. Teske, a director at Lennox International Inc. (NYSE:LII), sold 500 shares of the company's common stock. The shares were sold at a price of $675.52 each, amounting to a total transaction value of $337,760. Following the sale, Teske retains ownership of 7,911 shares in the company. The sale was executed on November 25, 2024, and the filing was submitted on November 26, 2024.
In other recent news, Lennox International reported impressive third-quarter results, surpassing expectations due to market share gains and effective execution. The company's core revenue rose by 15%, reaching approximately $1.5 billion, and adjusted earnings per share surged by 24% to $6.68. This strong performance prompted an upward revision of Lennox's full-year guidance for 2024. Mizuho (NYSE:MFG) Securities and RBC Capital responded by maintaining their ratings on Lennox and raising the stock's price target.
Lennox is progressing with new R454-B pricing initiatives and strategic capacity expansion, anticipating a price increase of over 10% and creating additional commercial opportunities. The company is also building its R-410A inventory due to product scarcity, expecting more favorable pricing next year. Lennox sees substantial growth potential in its Commercial Heating, Ventilation, and Air Conditioning segment, with its Saltillo factory currently operating at around 20% capacity.
These recent developments highlight Lennox's strategic moves for continuous growth. Despite potential challenges such as manufacturing capacity limitations and rising costs, the company remains optimistic about revenue growth in 2025, driven by the transition to low GWP refrigerants and operational efficiencies.
InvestingPro Insights
As Todd J. Teske's recent sale of Lennox International Inc. (NYSE:LII) shares catches investor attention, it's worth examining the company's current financial position and market performance. According to InvestingPro data, Lennox boasts a substantial market capitalization of $23.67 billion, reflecting its significant presence in the HVAC industry.
The company's stock has demonstrated remarkable strength, with a 64.35% total return over the past year and a 52.56% return year-to-date. This impressive performance aligns with an InvestingPro Tip indicating that Lennox has shown a high return over the last year. Additionally, the stock is trading near its 52-week high, with its current price at 96.88% of that peak.
Lennox's financial health appears robust, with a revenue of $5.15 billion in the last twelve months as of Q3 2024, and a solid gross profit margin of 32.45%. The company's profitability is further underscored by an InvestingPro Tip noting that Lennox has been profitable over the last twelve months.
For investors considering Lennox's valuation, it's important to note that the stock is trading at a P/E ratio of 31.19, which some may view as relatively high. This is reflected in an InvestingPro Tip suggesting that Lennox is trading at a high earnings multiple. However, this should be balanced against the company's strong market position and growth prospects.
Dividend-focused investors may appreciate that Lennox has maintained dividend payments for 26 consecutive years, as highlighted by another InvestingPro Tip. This demonstrates the company's commitment to shareholder returns and financial stability.
For those seeking a more comprehensive analysis, InvestingPro offers 20 additional tips on Lennox International, providing deeper insights into the company's financial health and market position.
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