Federal Signal (NYSE:FSS) Hits 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) hit a new 52-week high on Tuesday . The company traded as high as $128.66 and last traded at $128.59, with a volume of 143680 shares trading hands. The stock had previously closed at $126.44.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Wall Street Zen raised shares of Federal Signal from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. Raymond James Financial boosted their price objective on shares of Federal Signal from $120.00 to $145.00 and gave the stock an "outperform" rating in a research report on Thursday, July 31st. KeyCorp reissued a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. DA Davidson raised their target price on shares of Federal Signal from $100.00 to $112.00 and gave the company a "neutral" rating in a report on Thursday, July 31st. Finally, CJS Securities reaffirmed a "market perform" rating and issued a $125.00 price target on shares of Federal Signal in a report on Thursday, July 31st. Three investment analysts have rated the stock with a hold rating and two have given a buy rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $123.00.

Federal Signal Trading Down 2.7%

The stock has a market cap of $7.56 billion, a PE ratio of 34.64, a PEG ratio of 2.21 and a beta of 1.30. The business has a 50-day moving average of $111.32 and a 200 day moving average of $94.37. 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 announced its quarterly earnings results on Wednesday, July 30th. The conglomerate reported $1.17 earnings per share for the quarter, topping analysts' consensus estimates of $1.06 by $0.11. The firm had revenue of $564.60 million during 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%. The firm's revenue was up 15.1% on a year-over-year basis. During the same period in the prior year, the company earned $0.95 EPS. Equities research analysts predict that Federal Signal Corporation will post 3.34 EPS for the current fiscal year.

Federal Signal Announces Dividend

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

Federal Signal declared that its board has initiated a share repurchase program on Tuesday, April 22nd that permits the company to buyback $150.00 million in outstanding shares. This buyback authorization permits the conglomerate to repurchase up to 3.3% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Institutional Investors Weigh In On Federal Signal

Several hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp lifted its position in Federal Signal by 0.4% in the 2nd quarter. State Street Corp now owns 2,266,523 shares of the conglomerate's stock worth $241,203,000 after buying an additional 7,982 shares in the last quarter. First Trust Advisors LP raised its position in Federal Signal by 49.6% in the 2nd quarter. First Trust Advisors LP now owns 1,501,431 shares of the conglomerate's stock valued at $159,782,000 after purchasing an additional 497,652 shares during the last quarter. Van Berkom & Associates Inc. increased its stake in shares of Federal Signal by 2.0% in the 1st quarter. Van Berkom & Associates Inc. now owns 1,045,565 shares of the conglomerate's stock valued at $76,901,000 after buying an additional 20,771 shares during the period. Capital World Investors acquired a new stake in shares of Federal Signal during the fourth quarter worth $79,810,000. Finally, Norges Bank bought a new stake in shares of Federal Signal in the second quarter worth about $79,165,000. 92.73% of the stock is currently owned by institutional investors.

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.