What Happened?
Shares of commercial lighting and retail display solutions provider LSI (NASDAQ: LYTS) fell 1.9% in the afternoon session after the major indices continued to retreat (Nasdaq -1.5%, S&P 500 -1.2%) amid profit-taking and renewed concerns about tariffs.
The stock's decline was part of a wider market retreat on Tuesday, as September trading began with renewed investor caution. The sell-off was attributed to fresh uncertainty surrounding tariffs and was particularly pronounced in the technology sector. LSI's movement appears to be in line with the overall negative market sentiment rather than any specific company news.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy LSI? Access our full analysis report here, it’s free.
What Is The Market Telling Us
LSI’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 26% on the news that the company reported strong fourth-quarter results, which beat analysts' revenue, EBITDA, and EPS expectations by convincing amounts. The company attributed the success partly to demand from grocery customers, who "generated sales growth over 50% in the quarter driven by the resurgence in refrigerated and non-refrigerated display case demand". Overall, this was an impressive quarter.
LSI is up 16.4% since the beginning of the year, and at $22.55 per share, it is trading close to its 52-week high of $24.72 from January 2025. Investors who bought $1,000 worth of LSI’s shares 5 years ago would now be looking at an investment worth $3,245.
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