Federal Signal (NYSE:FSS) Sets New 1-Year High Following Analyst Upgrade

Shares of Federal Signal Corporation (NYSE:FSS) hit a new 52-week high during trading on Monday after Raymond James Financial raised their price target on the stock from $100.00 to $120.00. Raymond James Financial currently has an outperform rating on the stock. Federal Signal traded as high as $106.33 and last traded at $106.12, with a volume of 91980 shares. The stock had previously closed at $104.45.

A number of other analysts have also commented on the company. KeyCorp raised Federal Signal from a “sector weight” rating to an “overweight” rating and set a $110.00 price target for the company in a research note on Monday, May 12th. DA Davidson raised their price target on Federal Signal from $84.00 to $96.00 and gave the stock a “neutral” rating in a research note on Tuesday, June 24th.

Hedge Funds Weigh In On Federal Signal

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in Federal Signal by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 7,247,803 shares of the conglomerate’s stock worth $669,625,000 after purchasing an additional 93,597 shares in the last quarter. Invesco Ltd. raised its holdings in Federal Signal by 12.4% in the fourth quarter. Invesco Ltd. now owns 2,199,200 shares of the conglomerate’s stock worth $203,184,000 after purchasing an additional 242,840 shares in the last quarter. Geode Capital Management LLC raised its holdings in Federal Signal by 1.8% in the fourth quarter. Geode Capital Management LLC now owns 1,630,971 shares of the conglomerate’s stock worth $150,715,000 after purchasing an additional 29,197 shares in the last quarter. FMR LLC raised its holdings in Federal Signal by 19.4% in the fourth quarter. FMR LLC now owns 1,469,614 shares of the conglomerate’s stock worth $135,778,000 after purchasing an additional 238,608 shares in the last quarter. Finally, Van Berkom & Associates Inc. raised its holdings in Federal Signal by 2.0% in the first quarter. Van Berkom & Associates Inc. now owns 1,045,565 shares of the conglomerate’s stock worth $76,901,000 after purchasing an additional 20,771 shares in the last quarter. Institutional investors own 92.73% of the company’s stock.

Federal Signal Stock Performance

The business has a fifty day simple moving average of $93.57 and a 200-day simple moving average of $89.49. The company has a quick ratio of 1.09, a current ratio of 2.39 and a debt-to-equity ratio of 0.22. The firm has a market cap of $6.50 billion, a P/E ratio of 31.15, a P/E/G ratio of 1.95 and a beta of 1.26.

Federal Signal (NYSE:FSS) last issued its quarterly earnings results on Wednesday, April 30th. The conglomerate reported $0.76 earnings per share for the quarter, beating the consensus estimate of $0.73 by $0.03. Federal Signal had a return on equity of 18.44% and a net margin of 11.10%. The firm had revenue of $463.80 million during the quarter, compared to the consensus estimate of $462.63 million. During the same period last year, the company earned $0.64 earnings per share. The company’s revenue was up 9.2% on a year-over-year basis. On average, sell-side analysts predict that Federal Signal Corporation will post 3.34 EPS for the current fiscal year.

Federal Signal Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 30th. Stockholders of record on Friday, May 16th were issued a dividend of $0.14 per share. The ex-dividend date was Friday, May 16th. This represents a $0.56 annualized dividend and a dividend yield of 0.53%. Federal Signal’s payout ratio is presently 16.37%.

Federal Signal declared that its Board of Directors has authorized a stock repurchase plan on Tuesday, April 22nd that authorizes the company to buyback $150.00 million in shares. This buyback authorization authorizes the conglomerate to repurchase up to 3.3% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

About Federal Signal

Federal Signal Corp. engages in the design and manufacture of products and integrated solutions for municipal, governmental, industrial, and commercial customers. It operates through the Environmental Solutions Group and Safety and Security Systems Group segments. The Environment Solutions Group segment is involved in the manufacture and supply of street sweeper vehicles, sewer cleaners, vacuum loader trucks, hydro-excavation trucks, and water blasting equipment.