DA Davidson Issues Pessimistic Forecast for Federal Signal (NYSE:FSS) Stock Price

Key Points

• DA Davidson lowered Federal Signal’s price target from $132 to $126 while maintaining a “neutral” rating, implying roughly 6% upside from the prior close.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $139, despite recent downgrades from Zacks Research and Wall Street Zen.
• Federal Signal reported quarterly EPS of $1.34, slightly above estimates, while revenue rose 18.1% year over year to $655.5 million, below analyst expectations.

Federal Signal (NYSE:FSS - Get Free Report) had its target price lowered by equities researchers at DA Davidson from $132.00 to $126.00 in a report issued on Monday, Benzinga reports. The brokerage currently has a "neutral" rating on the conglomerate's stock. DA Davidson's target price indicates a potential upside of 5.97% from the stock's previous close.

A number of other equities analysts have also recently commented on FSS. Zacks Research cut Federal Signal from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 12th. Weiss Ratings upgraded Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Wall Street Zen cut Federal Signal from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Citigroup began coverage on shares of Federal Signal in a research report on Monday, August 17th. They set a "buy" rating and a $150.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $139.00.

Federal Signal Stock Performance

NYSE:FSS traded up $6.23 during trading hours on Monday, reaching $118.90. The stock had a trading volume of 111,069 shares, compared to its average volume of 472,881. The stock has a 50 day simple moving average of $115.33 and a 200 day simple moving average of $115.71. Federal Signal has a 12-month low of $101.18 and a 12-month high of $134.51. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.35 and a current ratio of 2.96. The stock has a market cap of $7.26 billion, a P/E ratio of 24.71, a price-to-earnings-growth ratio of 1.34 and a beta of 1.22.

Federal Signal (NYSE:FSS - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The conglomerate reported $1.34 EPS for the quarter, topping the consensus estimate of $1.32 by $0.02. Federal Signal had a net margin of 11.65% and a return on equity of 21.31%. The company had revenue of $655.50 million during the quarter, compared to the consensus estimate of $661.61 million. During the same period last year, the firm earned $1.14 EPS. Federal Signal's revenue for the quarter was up 18.1% on a year-over-year basis. On average, research analysts forecast that Federal Signal will post 5.25 EPS for the current fiscal year.

Insider Activity at Federal Signal

In other news, VP Diane Bonina sold 14,856 shares of the business's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $130.44, for a total value of $1,937,816.64. Following the completion of the transaction, the vice president owned 15,689 shares in the company, valued at $2,046,473.16. The trade was a 48.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 3.30% of the company's stock.

Hedge Funds Weigh In On Federal Signal

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new position in shares of Federal Signal during the second quarter valued at approximately $1,236,004,000. Bank of America Corp DE purchased a new stake in Federal Signal in the second quarter worth approximately $78,503,000. Bank of New York Mellon Corp bought a new stake in Federal Signal in the 2nd quarter worth approximately $53,055,000. Neumeier Poma Investment Counsel LLC bought a new stake in Federal Signal in the 2nd quarter worth approximately $51,910,988. Finally, The Manufacturers Life Insurance Company purchased a new stake in Federal Signal during the 2nd quarter valued at $50,910,000. Institutional investors own 92.73% of the company's stock.

Federal Signal Company Profile

Federal Signal Corporation NYSE: FSS designs and manufactures equipment and systems used by municipalities, government agencies, industrial organizations and commercial customers. Its products support public safety, infrastructure maintenance, environmental protection and emergency response activities.

The company operates through two principal business areas: Environmental Solutions and Safety and Security Systems. Environmental Solutions products include street sweepers, sewer cleaners, vacuum trucks, hydro-excavation equipment, dump bodies and snow and ice control equipment.

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