Alta Capital Management LLC Raises Stake in Federal Signal Corporation $FSS

Key Points

• Alta Capital Management LLC increased its stake in Federal Signal Corporation by 55%, owning 104,259 shares valued at approximately $11.1 million as of the end of the second quarter.
• Federal Signal reported a quarterly earnings per share of $1.17 for the most recent quarter, surpassing analysts' expectations and reflecting a 15.1% increase in revenue year-over-year.
• Wall Street analysts have varying outlooks on Federal Signal, with some raising their price targets significantly, such as Raymond James Financial, which set a new target of $145.00.

Alta Capital Management LLC lifted its stake in shares of Federal Signal Corporation (NYSE:FSS - Free Report) by 55.0% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 104,259 shares of the conglomerate's stock after buying an additional 37,006 shares during the quarter. Alta Capital Management LLC owned about 0.17% of Federal Signal worth $11,095,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of FSS. Physician Wealth Advisors Inc. increased its holdings in shares of Federal Signal by 47.0% in the 2nd quarter. Physician Wealth Advisors Inc. now owns 291 shares of the conglomerate's stock valued at $31,000 after acquiring an additional 93 shares during the period. Maryland State Retirement & Pension System increased its stake in Federal Signal by 0.6% in the 2nd quarter. Maryland State Retirement & Pension System now owns 17,918 shares of the conglomerate's stock valued at $1,907,000 after buying an additional 106 shares during the period. Creative Financial Designs Inc. ADV increased its stake in Federal Signal by 16.9% in the 1st quarter. Creative Financial Designs Inc. ADV now owns 1,119 shares of the conglomerate's stock valued at $82,000 after buying an additional 162 shares during the period. Bessemer Group Inc. increased its stake in 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 buying an additional 185 shares during the period. Finally, Harbor Investment Advisory LLC increased its stake in Federal Signal by 29.3% in the 2nd quarter. Harbor Investment Advisory LLC now owns 851 shares of the conglomerate's stock valued at $91,000 after buying an additional 193 shares during the period. Hedge funds and other institutional investors own 92.73% of the company's stock.

Federal Signal Stock Performance

NYSE:FSS opened at $119.14 on Thursday. The company has a quick ratio of 1.25, a current ratio of 2.60 and a debt-to-equity ratio of 0.20. Federal Signal Corporation has a fifty-two week low of $66.47 and a fifty-two week high of $130.30. The stock has a market cap of $7.24 billion, a PE ratio of 33.19, a price-to-earnings-growth ratio of 2.11 and a beta of 1.29. The firm's fifty day simple moving average is $123.63 and its 200-day simple moving average is $105.06.

Federal Signal (NYSE:FSS - Get Free Report) last posted 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. Federal Signal had a net margin of 11.22% and a return on equity of 18.91%. The business had revenue of $564.60 million for the quarter, compared to analysts' expectations of $537.24 million. During the same period in the prior year, the company posted $0.95 EPS. The business's revenue for the quarter was up 15.1% on a year-over-year basis. Federal Signal has set its FY 2025 guidance at 3.920-4.100 EPS. Analysts expect that Federal Signal Corporation will post 3.34 earnings per share for the current fiscal year.

Federal Signal Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 28th. Investors of record on Friday, August 15th were given a $0.14 dividend. The ex-dividend date was Friday, August 15th. This represents a $0.56 annualized dividend and a dividend yield of 0.5%. Federal Signal's payout ratio is currently 15.60%.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on FSS shares. Raymond James Financial boosted their price objective on shares of Federal Signal from $120.00 to $145.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. KeyCorp reissued a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. CJS Securities reissued a "market perform" rating and issued a $125.00 price objective on shares of Federal Signal in a research note on Thursday, July 31st. Zacks Research cut shares of Federal Signal from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 29th. Finally, Wall Street Zen raised shares of Federal Signal from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $123.00.

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.

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