Federal Signal (NYSE:FSS) Sets New 12-Month High - Should You Buy?

Federal Signal Corporation (NYSE:FSS - Get Free Report)'s stock price hit a new 52-week high on Tuesday . The stock traded as high as $103.96 and last traded at $102.97, with a volume of 2902 shares trading hands. The stock had previously closed at $102.94.

Analysts Set New Price Targets

FSS has been the subject of a number of recent research reports. DA Davidson lifted their price target on shares of Federal Signal from $82.00 to $84.00 and gave the stock a "neutral" rating in a research note on Monday, May 5th. KeyCorp raised shares of Federal Signal from a "sector weight" rating to an "overweight" rating and set a $110.00 price objective for the company in a research report on Monday, May 12th. Raymond James Financial dropped their target price on Federal Signal from $105.00 to $100.00 and set an "outperform" rating on the stock in a report on Monday, April 14th. Finally, Wall Street Zen cut Federal Signal from a "buy" rating to a "hold" rating in a research note on Saturday, March 1st.

Federal Signal Price Performance

The company has a debt-to-equity ratio of 0.22, a current ratio of 2.39 and a quick ratio of 1.09. The company's 50 day simple moving average is $90.06 and its 200 day simple moving average is $89.20. The company has a market capitalization of $6.32 billion, a PE ratio of 30.27, a price-to-earnings-growth ratio of 1.89 and a beta of 1.26.

Federal Signal (NYSE:FSS - Get Free Report) last posted its earnings results on Wednesday, April 30th. The conglomerate reported $0.76 EPS for the quarter, beating analysts' consensus estimates of $0.73 by $0.03. Federal Signal had a net margin of 11.10% and a return on equity of 18.44%. The firm had revenue of $463.80 million for the quarter, compared to the consensus estimate of $462.63 million. During the same period last year, the firm posted $0.64 EPS. The company's revenue was up 9.2% on a year-over-year basis. As a group, sell-side analysts predict that Federal Signal Corporation will post 3.34 earnings per share for the current year.

Federal Signal Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 30th. Investors of record on Friday, May 16th were paid a dividend of $0.14 per share. The ex-dividend date was Friday, May 16th. This represents a $0.56 dividend on an annualized basis and a yield of 0.54%. Federal Signal's dividend payout ratio is presently 16.37%.

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

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Opal Wealth Advisors LLC acquired a new stake in shares of Federal Signal during the first quarter worth about $29,000. Bessemer Group Inc. grew its stake in shares of Federal Signal by 78.4% in the 1st quarter. Bessemer Group Inc. now owns 421 shares of the conglomerate's stock valued at $31,000 after purchasing an additional 185 shares during the last quarter. Harbor Investment Advisory LLC increased its holdings in shares of Federal Signal by 201.8% in the first quarter. Harbor Investment Advisory LLC now owns 658 shares of the conglomerate's stock valued at $48,000 after purchasing an additional 440 shares during the period. Signaturefd LLC raised its stake in shares of Federal Signal by 37.4% during the fourth quarter. Signaturefd LLC now owns 606 shares of the conglomerate's stock worth $56,000 after purchasing an additional 165 shares during the last quarter. Finally, CoreCap Advisors LLC grew its position in Federal Signal by 19.9% in the 4th quarter. CoreCap Advisors LLC now owns 875 shares of the conglomerate's stock valued at $81,000 after buying an additional 145 shares during the last quarter. 92.73% of the stock is currently owned by institutional investors and hedge funds.

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.

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