DA Davidson Boosts Federal Signal (NYSE:FSS) Price Target to $112.00

Key Points

• DA Davidson raised its price target for Federal Signal from $100.00 to $112.00, indicating a potential downside of 11.34% from the current stock price and maintaining a "neutral" rating.
• Analyst consensus for Federal Signal shows a "Hold" rating with an average price target of $123.00, while Raymond James Financial has set a more optimistic target of $145.00 with an "outperform" rating.
• Federal Signal reported a strong earnings result with $1.17 EPS for the latest quarter, exceeding expectations and showing a 15.1% year-over-year revenue increase.

Federal Signal (NYSE:FSS - Get Free Report) had its price objective hoisted by stock analysts at DA Davidson from $100.00 to $112.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the conglomerate's stock. DA Davidson's price objective suggests a potential downside of 11.34% from the stock's current price.

Other analysts have also recently issued research reports about the stock. Raymond James Financial raised their price objective on shares of Federal Signal from $120.00 to $145.00 and gave the company an "outperform" rating in a research report on Thursday. CJS Securities reiterated a "market perform" rating and issued a $125.00 target price on shares of Federal Signal in a research report on Thursday. Finally, KeyCorp reaffirmed a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. Four research analysts have rated the stock with a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $123.00.

Federal Signal Stock Performance

FSS traded up $2.37 on Thursday, hitting $126.32. The company's stock had a trading volume of 1,259,786 shares, compared to its average volume of 579,132. The company's 50 day simple moving average is $103.90 and its 200-day simple moving average is $92.08. The firm has a market cap of $7.70 billion, a P/E ratio of 36.94, a price-to-earnings-growth ratio of 2.28 and a beta of 1.27. Federal Signal has a 12 month low of $66.47 and a 12 month high of $128.50. The company has a quick ratio of 1.09, a current ratio of 2.39 and a debt-to-equity ratio of 0.22.

Federal Signal (NYSE:FSS - Get Free Report) last posted its earnings results on Wednesday, July 30th. The conglomerate reported $1.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.11. Federal Signal had a net margin of 11.10% and a return on equity of 18.44%. The business had revenue of $564.60 million for the quarter, compared to analysts' expectations of $537.24 million. During the same period in the prior year, the company posted $0.95 EPS. The business's revenue for the quarter was up 15.1% compared to the same quarter last year. Analysts forecast that Federal Signal will post 3.34 EPS for the current year.

Federal Signal announced that its board has approved a share buyback plan on Tuesday, April 22nd that permits the company to buyback $150.00 million in outstanding shares. This buyback authorization permits the conglomerate to reacquire up to 3.3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On Federal Signal

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. LPL Financial LLC raised its position in Federal Signal by 57.4% in the fourth quarter. LPL Financial LLC now owns 21,098 shares of the conglomerate's stock worth $1,949,000 after acquiring an additional 7,696 shares during the period. JPMorgan Chase & Co. raised its position in Federal Signal by 79.9% in the fourth quarter. JPMorgan Chase & Co. now owns 304,711 shares of the conglomerate's stock worth $28,152,000 after acquiring an additional 135,359 shares during the period. Norges Bank bought a new position in Federal Signal in the fourth quarter worth approximately $78,192,000. Pictet Asset Management Holding SA raised its position in Federal Signal by 11.5% in the fourth quarter. Pictet Asset Management Holding SA now owns 9,070 shares of the conglomerate's stock worth $838,000 after acquiring an additional 935 shares during the period. Finally, Schroder Investment Management Group raised its position in Federal Signal by 110.3% in the fourth quarter. Schroder Investment Management Group now owns 16,849 shares of the conglomerate's stock worth $1,553,000 after acquiring an additional 8,837 shares during the period. Hedge funds and other institutional investors own 92.73% of the company's stock.

Federal Signal Company Profile

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.

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