LSI Industries (NASDAQ:LYTS) Trading Down 6.2% After Analyst Downgrade

LSI Industries Inc. (NASDAQ:LYTS) shares dropped 6.2% on Friday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The company traded as low as $21.95 and last traded at $21.81. Approximately 84,512 shares traded hands during trading, a decline of 38% from the average daily volume of 135,937 shares. The stock had previously closed at $23.25.

A number of other equities research analysts have also recently issued reports on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of LSI Industries in a report on Monday, December 29th. Zacks Research upgraded LSI Industries from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 4th. Finally, Canaccord Genuity Group raised their price objective on LSI Industries from $25.00 to $27.00 and gave the company a “buy” rating in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $28.33.

LSI Industries News Summary

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

• Positive Sentiment: Q2 fiscal 2026 results beat expectations — EPS $0.20 vs. $0.17 consensus and revenue $147M vs. ~$140M est.; management highlighted improving margins and a stronger lighting mix. LSI Industries Inc (LYTS) Q2 2026 Earnings Call Highlights
• Positive Sentiment: Analyst support increased: Canaccord raised its price target from $25 to $27 and kept a Buy rating, signaling analyst conviction in upside from lighting growth. LYTS price target raised by Canaccord
• Positive Sentiment: Board declared a quarterly cash dividend of $0.05 per share (record Feb 2, payable Feb 10), adding modest income support and signaling confidence in cash flow.
• Neutral Sentiment: Management commentary (call/transcript) emphasized lighting segment strength and solid cash metrics; this supports the growth thesis but did not include a material guidance change. Q2 2026 Earnings Call Transcript
• Negative Sentiment: The stock is trading lower today on heavier volume despite the beat — likely profit-taking after the post-earnings run and recent gains (one-year high ~25.38) rather than fresh fundamental deterioration. Short-term downward pressure could also reflect investors needing more visible reacceleration in top-line trends or clearer forward guidance. Why LSI Industries Stock Surged Today

Institutional Trading of LSI Industries

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Thrivent Financial for Lutherans bought a new position in shares of LSI Industries during the third quarter worth approximately $10,288,000. Royce & Associates LP increased its stake in LSI Industries by 50.0% during the 3rd quarter. Royce & Associates LP now owns 1,045,225 shares of the construction company’s stock worth $24,678,000 after acquiring an additional 348,598 shares during the period. Kennedy Capital Management LLC raised its holdings in LSI Industries by 163.7% in the 3rd quarter. Kennedy Capital Management LLC now owns 339,495 shares of the construction company’s stock valued at $8,015,000 after acquiring an additional 210,728 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of 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 purchasing an additional 158,934 shares in the last quarter. Finally, Archon Capital Management LLC increased its position in shares of LSI Industries by 67.8% in the second quarter. Archon Capital Management LLC now owns 284,872 shares of the construction company’s stock worth $4,846,000 after purchasing an additional 115,124 shares during the period. Institutional investors and hedge funds own 73.91% of the company’s stock.

LSI Industries Stock Down 4.8%

The company has a market cap of $688.33 million, a P/E ratio of 27.00 and a beta of 0.18. The stock has a 50-day moving average of $18.90 and a 200 day moving average of $20.35. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.19 and a quick ratio of 1.36.

LSI Industries (NASDAQ:LYTS) last announced its quarterly earnings data on Thursday, January 22nd. The construction company reported $0.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. The firm had revenue of $147.00 million for the quarter, compared to the consensus estimate of $140.11 million. LSI Industries had a net margin of 4.34% and a return on equity of 11.10%. Research analysts anticipate that LSI Industries Inc. will post 0.7 earnings per share for the current year.

LSI Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 10th. Shareholders of record on Monday, February 2nd will be given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.9%. The ex-dividend date is Monday, February 2nd. LSI Industries’s payout ratio is currently 24.39%.

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.