Charles Schwab Investment Management Inc. Sells 35,930 Shares of Federal Signal Corporation $FSS

Key Points

• Charles Schwab Investment Management Inc. has reduced its stake in Federal Signal Corporation by 4.6%, now owning approximately 1.22% of the company's shares, valued at about $54.76 million.
• Federal Signal recently reported a quarterly earnings of $1.17 per share, exceeding analysts' expectations, with revenues of $564.60 million, representing a 15.1% increase compared to the previous year.
• The company has announced a $0.14 quarterly dividend to shareholders, with a payout ratio of 15.60%, as well as a stock buyback plan authorized for repurchasing up to $150 million of its outstanding shares.

Charles Schwab Investment Management Inc. decreased its holdings in Federal Signal Corporation (NYSE:FSS - Free Report) by 4.6% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 744,583 shares of the conglomerate's stock after selling 35,930 shares during the period. Charles Schwab Investment Management Inc. owned approximately 1.22% of Federal Signal worth $54,764,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. Capital World Investors acquired a new stake in shares of Federal Signal during the 4th quarter valued at $79,810,000. Vaughan Nelson Investment Management L.P. acquired a new stake in shares of Federal Signal during the 1st quarter valued at $26,144,000. First Trust Advisors LP boosted its holdings in shares of Federal Signal by 56.5% during the 4th quarter. First Trust Advisors LP now owns 894,136 shares of the conglomerate's stock valued at $82,609,000 after acquiring an additional 322,676 shares in the last quarter. ArrowMark Colorado Holdings LLC boosted its holdings in shares of Federal Signal by 67.9% during the 4th quarter. ArrowMark Colorado Holdings LLC now owns 518,486 shares of the conglomerate's stock valued at $47,903,000 after acquiring an additional 209,655 shares in the last quarter. Finally, Handelsbanken Fonder AB boosted its holdings in shares of Federal Signal by 1,432.9% during the 1st quarter. Handelsbanken Fonder AB now owns 203,260 shares of the conglomerate's stock valued at $14,950,000 after acquiring an additional 190,000 shares in the last quarter. Institutional investors own 92.73% of the company's stock.

Wall Street Analyst Weigh In

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

Federal Signal Trading Down 0.6%

Shares of NYSE:FSS traded down $0.7560 during midday trading on Tuesday, reaching $125.5940. The company's stock had a trading volume of 81,790 shares, compared to its average volume of 586,219. The firm has a market capitalization of $7.63 billion, a price-to-earnings ratio of 34.98, a PEG ratio of 2.21 and a beta of 1.30. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.25 and a current ratio of 2.60. The firm has a 50 day moving average price of $111.84 and a two-hundred day moving average price of $94.56. Federal Signal Corporation has a fifty-two week low of $66.47 and a fifty-two week high of $130.30.

Federal Signal (NYSE:FSS - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The conglomerate reported $1.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.06 by $0.11. The company had revenue of $564.60 million for the quarter, compared to the consensus estimate of $537.24 million. Federal Signal had a return on equity of 18.91% and a net margin of 11.22%.The firm's revenue was up 15.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.95 EPS. Federal Signal has set its FY 2025 guidance at 3.920-4.100 EPS. As a group, analysts forecast that Federal Signal Corporation will post 3.34 earnings per share for the current year.

Federal Signal Announces Dividend

The firm also recently disclosed 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. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Friday, August 15th. Federal Signal's payout ratio is currently 15.60%.

Federal Signal declared that its Board of Directors has initiated a share repurchase plan on Tuesday, April 22nd that allows the company to repurchase $150.00 million in outstanding shares. This repurchase authorization allows the conglomerate to purchase up to 3.3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

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.