Federal Signal (NYSE:FSS) Sets New 1-Year High - Here's Why

Key Points

• Federal Signal Corporation reached a new 52-week high of $128.66, following strong trading volume of 143,680 shares.
• The company reported Q2 earnings of $1.17 per share, surpassing analysts' expectations, with revenue rising 15.1% year-over-year to $564.60 million.
• Analysts have updated their ratings, with Wall Street Zen upgrading Federal Signal from "hold" to "buy," and Raymond James setting a new price target of $145.00.

Federal Signal Corporation (NYSE:FSS - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The company traded as high as $128.66 and last traded at $128.59, with a volume of 143680 shares traded. The stock had previously closed at $126.44.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Raymond James Financial lifted their price target on Federal Signal from $120.00 to $145.00 and gave the stock an "outperform" rating in a report on Thursday, July 31st. KeyCorp reiterated a "sector weight" rating on shares of Federal Signal in a research report on Friday, July 11th. DA Davidson lifted their price target on shares of Federal Signal from $100.00 to $112.00 and gave the company a "neutral" rating in a research report on Thursday, July 31st. CJS Securities restated a "market perform" rating and set a $125.00 price objective on shares of Federal Signal in a research report on Thursday, July 31st. Finally, Wall Street Zen upgraded shares of Federal Signal from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. Three analysts have rated the stock with a hold rating and two have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $123.00.

Federal Signal Trading Down 2.7%

The company has a quick ratio of 1.25, a current ratio of 2.60 and a debt-to-equity ratio of 0.20. The company has a market cap of $7.56 billion, a P/E ratio of 34.64, a PEG ratio of 2.21 and a beta of 1.30. The firm's 50 day moving average is $111.32 and its two-hundred day moving average is $94.40.

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

Federal Signal Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Shareholders of record on Friday, August 15th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $0.56 dividend on an annualized basis and a yield of 0.5%. Federal Signal's dividend payout ratio is 15.60%.

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 outstanding shares. This buyback authorization authorizes the conglomerate to reacquire up to 3.3% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Federal Signal

Institutional investors have recently made changes to their positions in the stock. Capital World Investors acquired a new stake in shares of Federal Signal in the 4th quarter worth about $79,810,000. Norges Bank bought a new position in shares of Federal Signal during the 2nd quarter valued at approximately $79,165,000. Nuveen LLC bought a new position in shares of Federal Signal during the 1st quarter valued at approximately $45,307,000. First Trust Advisors LP grew its position in shares of Federal Signal by 49.6% during the 2nd quarter. First Trust Advisors LP now owns 1,501,431 shares of the conglomerate's stock valued at $159,782,000 after acquiring an additional 497,652 shares during the period. Finally, Congress Asset Management Co. bought a new position in shares of Federal Signal during the 2nd quarter valued at approximately $51,945,000. Institutional investors and hedge funds 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.