Federal Signal Corporation $FSS Shares Sold by Charles Schwab Investment Management Inc.

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. cut its position in Federal Signal Corporation (NYSE:FSS - Free Report) by 4.6% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 744,583 shares of the conglomerate's stock after selling 35,930 shares during the quarter. Charles Schwab Investment Management Inc. owned 1.22% of Federal Signal worth $54,764,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also modified their holdings of the company. Opal Wealth Advisors LLC acquired a new stake in shares of Federal Signal in the first quarter valued at $29,000. Bessemer Group Inc. grew its stake in shares of Federal Signal by 78.4% in the first quarter. Bessemer Group Inc. now owns 421 shares of the conglomerate's stock valued at $31,000 after buying an additional 185 shares in the last quarter. Harbor Investment Advisory LLC grew its stake 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 buying an additional 440 shares in the last quarter. CoreCap Advisors LLC grew its stake in shares of Federal Signal by 19.9% in the fourth quarter. CoreCap Advisors LLC now owns 875 shares of the conglomerate's stock valued at $81,000 after buying an additional 145 shares in the last quarter. Finally, Creative Financial Designs Inc. ADV grew its stake in shares of Federal Signal by 16.9% in the first 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 in the last quarter. 92.73% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

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

Federal Signal Stock Up 0.5%

Shares of NYSE:FSS traded up $0.6020 on Wednesday, hitting $125.9320. 433,025 shares of the company's stock were exchanged, compared to its average volume of 847,045. The firm's 50-day moving average is $112.83 and its 200 day moving average is $94.99. The company has a market capitalization of $7.66 billion, a PE ratio of 35.08, a P/E/G ratio of 2.23 and a beta of 1.30. Federal Signal Corporation has a 1-year low of $66.47 and a 1-year high of $130.30. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.25 and a current ratio of 2.60.

Federal Signal (NYSE:FSS - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The conglomerate reported $1.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.11. The business had revenue of $564.60 million during the quarter, compared to analysts' expectations of $537.24 million. Federal Signal had a return on equity of 18.91% and a net margin of 11.22%.The business's quarterly revenue was up 15.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.95 EPS. Federal Signal has set its FY 2025 guidance at 3.920-4.100 EPS. Sell-side analysts predict that Federal Signal Corporation will post 3.34 EPS 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 given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Friday, August 15th. Federal Signal's dividend payout ratio is currently 15.60%.

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

Federal Signal 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.