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

LSI Industries Inc. (NASDAQ:LYTS)’s share price dropped 6.2% during trading 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 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.

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

Trending Headlines about LSI Industries

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 Investors Weigh In On LSI Industries

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LYTS. Systematic Financial Management LP grew its stake in LSI Industries by 1.0% in the 2nd quarter. Systematic Financial Management LP now owns 2,592,372 shares of the construction company’s stock worth $44,096,000 after acquiring an additional 26,546 shares in the last quarter. Vanguard Group Inc. grew its stake in LSI Industries by 3.2% in the third quarter. Vanguard Group Inc. now owns 1,657,475 shares of the construction company’s stock worth $39,133,000 after purchasing an additional 50,722 shares in the last quarter. AltraVue Capital LLC increased its holdings in LSI Industries by 2.1% during the 3rd quarter. AltraVue Capital LLC now owns 1,339,140 shares of the construction company’s stock worth $31,617,000 after purchasing an additional 27,140 shares during the period. Royce & Associates LP raised its position 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 valued at $24,678,000 after purchasing an additional 348,598 shares in the last quarter. Finally, Wellington Management Group LLP raised its position in LSI Industries by 3.6% during the 3rd quarter. Wellington Management Group LLP now owns 620,678 shares of the construction company’s stock valued at $14,654,000 after purchasing an additional 21,400 shares in the last quarter. Institutional investors own 73.91% of the company’s stock.

LSI Industries Stock Down 4.8%

The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.36 and a current ratio of 2.19. The company has a fifty day simple moving average of $18.90 and a two-hundred day simple moving average of $20.35. The firm has a market capitalization of $688.33 million, a PE ratio of 27.00 and a beta of 0.18.

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

LSI Industries Dividend Announcement

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

About LSI Industries

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.