Federal Signal (NYSE:FSS) Trading Down 4.5% - Should You Sell?

Federal Signal Corporation (NYSE:FSS - Get Free Report) was down 4.5% during mid-day trading on Friday . The company traded as low as $108.16 and last traded at $107.95. Approximately 193,552 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 536,891 shares. The stock had previously closed at $113.08.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. DA Davidson raised their price objective on shares of Federal Signal from $84.00 to $96.00 and gave the company a "neutral" rating in a research report on Tuesday, June 24th. KeyCorp reaffirmed a "sector weight" rating on shares of Federal Signal in a research report on Friday. Finally, Raymond James Financial set a $120.00 price objective on shares of Federal Signal and gave the company an "outperform" rating in a research report on Monday, June 30th.

Federal Signal Stock Performance

The company has a market cap of $6.71 billion, a P/E ratio of 32.17, a price-to-earnings-growth ratio of 2.11 and a beta of 1.27. The company has a quick ratio of 1.09, a current ratio of 2.39 and a debt-to-equity ratio of 0.22. The stock's 50-day moving average price is $99.54 and its 200 day moving average price is $90.66.

Federal Signal (NYSE:FSS - Get Free Report) last released its quarterly 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 company had revenue of $463.80 million for the quarter, compared to analyst estimates of $462.63 million. During the same quarter last year, the firm posted $0.64 earnings per share. The company's quarterly revenue was up 9.2% compared to the same quarter last year. As a group, research analysts expect that Federal Signal Corporation will post 3.34 EPS for the current fiscal year.

Federal Signal Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 30th. Investors of record on Friday, May 16th were given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 0.51%. The ex-dividend date of this dividend was Friday, May 16th. Federal Signal's dividend payout ratio (DPR) is currently 16.37%.

Federal Signal declared that its Board of Directors has initiated a share buyback program on Tuesday, April 22nd that authorizes the company to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the conglomerate to buy up to 3.3% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On Federal Signal

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. CoreCap Advisors LLC increased its position in Federal Signal by 19.9% during the fourth quarter. CoreCap Advisors LLC now owns 875 shares of the conglomerate's stock worth $81,000 after acquiring an additional 145 shares during the period. Creative Financial Designs Inc. ADV increased its position in Federal Signal by 16.9% during the first quarter. Creative Financial Designs Inc. ADV now owns 1,119 shares of the conglomerate's stock worth $82,000 after acquiring an additional 162 shares during the period. Signaturefd LLC increased its position in Federal Signal by 37.4% during the fourth quarter. Signaturefd LLC now owns 606 shares of the conglomerate's stock worth $56,000 after acquiring an additional 165 shares during the period. Steward Partners Investment Advisory LLC increased its position in Federal Signal by 15.6% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 1,343 shares of the conglomerate's stock worth $124,000 after acquiring an additional 181 shares during the period. Finally, Bessemer Group Inc. increased its position in Federal Signal by 78.4% during the first quarter. Bessemer Group Inc. now owns 421 shares of the conglomerate's stock worth $31,000 after acquiring an additional 185 shares during the period. Institutional investors 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.