Federal Signal (NYSE:FSS) Price Target Cut to $135.00 by Analysts at Citigroup

Key Points

• Citigroup lowered Federal Signal’s price target from $150 to $135 while maintaining a “buy” rating, implying approximately 14.7% upside from the stock’s $117.72 trading price.
• Analyst sentiment remains moderately positive, with four buy ratings and two holds; the consensus price target is $135.25. DA Davidson and other firms also recently reduced or downgraded their ratings.
• Federal Signal exceeded quarterly EPS expectations, reporting $1.34 versus the $1.32 consensus, while revenue rose 18.1% year over year to $655.5 million but fell short of estimates.

Federal Signal (NYSE:FSS - Get Free Report) had its price target reduced by equities researchers at Citigroup from $150.00 to $135.00 in a report released on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the conglomerate's stock. Citigroup's price target indicates a potential upside of 14.68% from the company's current price.

A number of other equities analysts have also weighed in on the stock. DA Davidson cut their target price on shares of Federal Signal from $132.00 to $126.00 and set a "neutral" rating for the company in a research report on Monday. Wall Street Zen cut Federal Signal from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Zacks Research cut shares of Federal Signal from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings raised Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $135.25.

Federal Signal Price Performance

Federal Signal stock traded up $5.05 during midday trading on Monday, hitting $117.72. The company's stock had a trading volume of 201,392 shares, compared to its average volume of 473,351. The company has a quick ratio of 1.35, a current ratio of 2.96 and a debt-to-equity ratio of 0.27. The stock's 50-day moving average price is $115.33 and its 200-day moving average price is $115.71. Federal Signal has a 12 month low of $101.18 and a 12 month high of $134.51. The company has a market capitalization of $7.18 billion, a PE ratio of 24.41, a price-to-earnings-growth ratio of 1.34 and a beta of 1.22.

Federal Signal (NYSE:FSS - Get Free Report) last announced its earnings results on Thursday, October 29th. The conglomerate reported $1.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.32 by $0.02. The firm had revenue of $655.50 million during the quarter, compared to analysts' expectations of $661.61 million. Federal Signal had a return on equity of 21.31% and a net margin of 11.65%. The company's revenue was up 18.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.14 earnings per share. Analysts anticipate that Federal Signal will post 5.25 earnings per share for the current fiscal year.

Insider Activity

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 directly owned 15,689 shares of the company's stock, 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 legal filing with the SEC, which is available through the SEC website. 3.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Federal Signal

A number of hedge funds and other institutional investors have recently bought and sold shares of FSS. Root Financial Partners LLC acquired a new position in shares of Federal Signal in the 3rd quarter valued at $25,000. Allworth Financial LP acquired a new position in shares of Federal Signal in the 2nd quarter valued at $33,000. Ancora Advisors LLC bought a new stake in shares of Federal Signal in the 2nd quarter valued at $34,000. Richardson Financial Services Inc. raised its stake in Federal Signal by 67.7% during the 3rd quarter. Richardson Financial Services Inc. now owns 265 shares of the conglomerate's stock worth $29,000 after buying an additional 107 shares during the period. Finally, Compass Financial Management LLC acquired a new stake in Federal Signal during the 2nd quarter worth $51,000. 92.73% of the stock is owned by institutional investors and hedge funds.

About Federal Signal

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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