CJS Securities Reaffirms "Market Perform" Rating for Federal Signal (NYSE:FSS)

Key Points

• Federal Signal's stock has been assigned a "market perform" rating by CJS Securities, with a target price of $125.00, indicating a potential downside of 1.07% from its previous close.
• The company reported a 15.1% increase in quarterly revenue year-over-year, reaching $564.60 million, with earnings per share at $1.17, exceeding analyst expectations.
• Federal Signal has authorized a $150 million stock repurchase program, reflecting confidence in the company's stock value, which allows for buying back approximately 3.3% of its shares.

Federal Signal (NYSE:FSS - Get Free Report)'s stock had its "market perform" rating reissued by stock analysts at CJS Securities in a research note issued on Thursday, July 31st, Marketbeat reports. They presently have a $125.00 price target on the conglomerate's stock. CJS Securities' price target would indicate a potential downside of 0.22% from the stock's current price.

A number of other research firms also recently issued reports on FSS. DA Davidson boosted their price target on shares of Federal Signal from $96.00 to $100.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. KeyCorp restated a "sector weight" rating on shares of Federal Signal in a report on Friday, July 11th. Finally, Raymond James Financial lifted their price objective on shares of Federal Signal from $120.00 to $145.00 and gave the company an "outperform" rating in a report on Thursday, July 31st. Three investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $123.00.

Federal Signal Price Performance

Federal Signal stock opened at $125.28 on Thursday. The company's 50 day simple moving average is $107.05 and its 200-day simple moving average is $93.06. The company has a market capitalization of $7.62 billion, a price-to-earnings ratio of 34.90, a price-to-earnings-growth ratio of 2.23 and a beta of 1.30. Federal Signal has a 1 year low of $66.47 and a 1 year high of $128.50. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.25 and a current ratio of 2.60.

Federal Signal (NYSE:FSS - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The conglomerate reported $1.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.06 by $0.11. The business had revenue of $564.60 million for the quarter, compared to the consensus estimate of $537.24 million. Federal Signal had a net margin of 11.22% and a return on equity of 18.91%. The business's revenue was up 15.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.95 EPS. As a group, equities research analysts expect that Federal Signal will post 3.34 earnings per share for the current year.

Federal Signal declared that its board has approved a stock repurchase program on Tuesday, April 22nd that permits the company to buyback $150.00 million in shares. This buyback authorization permits the conglomerate to reacquire up to 3.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company's leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in FSS. Capital World Investors acquired a new position in Federal Signal during the 4th quarter worth approximately $79,810,000. Norges Bank purchased a new stake in shares of Federal Signal during the 4th quarter worth approximately $78,192,000. Nuveen LLC purchased a new stake in shares of Federal Signal during the 1st quarter worth approximately $45,307,000. Congress Asset Management Co. purchased a new stake in shares of Federal Signal during the 2nd quarter worth approximately $51,945,000. Finally, The Manufacturers Life Insurance Company lifted its position in shares of Federal Signal by 1,266.0% during the 1st quarter. The Manufacturers Life Insurance Company now owns 464,593 shares of the conglomerate's stock worth $34,171,000 after buying an additional 430,583 shares during the last quarter. Institutional investors and hedge funds own 92.73% of the company's stock.

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.