The Richardson, Texas-based company said that its board approved the repurchase of up to $300 million in common stock. Based on its May 30 closing price, this buyback would represent 15% of the company’s total market cap.

Lennox recently completed a $500 million buyback plan as much as one quarter ahead of schedule. Under the buyback, which was initiated in July 2007, the company repurchased 14 million shares.

Todd Bluedorn, Lennox CEO added, "This authorization underscores the confidence the board and I have in Lennox International and our continued financial strength and future growth prospects."

On April 23, Lennox posted first quarter earnings that came up short of expectations. Net income dropped to $6 million or 10 cents a share, from $9 million or 12 cents a share, in the same period last year. Revenue sunk 3% to $767 million.

"As expected, difficult residential new construction and replacement markets challenged our first quarter results," said Bluedorn. "Disciplined cost reductions, combined with strong performance in our North America Commercial and Refrigeration businesses, helped offset the headwinds.”

However, we like to see that KeyBanc Capital Markets has a buy rating on the stock and a price target set at $44. Analyst Jeffrey D. Hammond commented, “we view LII shares as a particularly attractive avenue to play the eventual stabilization of the residential market as the Company leverages off of what should be a materially improved cost structure.”

Lennox International (LII) was downgraded from Overweight to Neutral, JP Morgan said. Company lacks catalysts, with both residential and commercial construction declining. Estimates also cut, even with the benefit of stock buybacks and the cost reductions.

mover in industry; good products