PNC Financial Services Group Inc. Acquires 2,267 Shares of Federal Signal Corporation (NYSE:FSS)

Key Points

• PNC Financial Services Group Inc. increased its holdings in Federal Signal Corporation by 29.1%, acquiring an additional 2,267 shares, bringing its total to 10,069 shares valued at $741,000.
• Federal Signal recently reported earnings of $1.17 per share, exceeding the consensus estimate of $1.06, along with revenues of $564.60 million, reflecting a 15.1% year-over-year increase.
• The company announced a quarterly dividend of $0.14 per share, with a yield of 0.4%, and has a stock repurchase program allowing buybacks of up to $150 million in shares.

PNC Financial Services Group Inc. grew its stake in Federal Signal Corporation (NYSE:FSS - Free Report) by 29.1% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 10,069 shares of the conglomerate's stock after purchasing an additional 2,267 shares during the period. PNC Financial Services Group Inc.'s holdings in Federal Signal were worth $741,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the stock. FMR LLC lifted its stake in shares of Federal Signal by 19.4% in the 4th quarter. FMR LLC now owns 1,469,614 shares of the conglomerate's stock valued at $135,778,000 after purchasing an additional 238,608 shares during the last quarter. Van Berkom & Associates Inc. lifted its stake in shares of Federal Signal by 2.0% in the 1st quarter. Van Berkom & Associates Inc. now owns 1,045,565 shares of the conglomerate's stock valued at $76,901,000 after purchasing an additional 20,771 shares during the last quarter. First Trust Advisors LP lifted its stake in shares of Federal Signal by 56.5% in the 4th quarter. First Trust Advisors LP now owns 894,136 shares of the conglomerate's stock valued at $82,609,000 after purchasing an additional 322,676 shares during the last quarter. Capital World Investors bought a new stake in shares of Federal Signal in the 4th quarter valued at approximately $79,810,000. Finally, Northern Trust Corp lifted its stake in shares of Federal Signal by 10.8% in the 4th quarter. Northern Trust Corp now owns 693,729 shares of the conglomerate's stock valued at $64,094,000 after purchasing an additional 67,716 shares during the last quarter. 92.73% of the stock is owned by institutional investors.

Federal Signal Trading Up 0.1%

Shares of Federal Signal stock traded up $0.09 on Wednesday, hitting $129.89. 473,622 shares of the company traded hands, compared to its average volume of 904,388. The stock's 50 day moving average price is $110.26 and its 200-day moving average price is $94.03. The company has a current ratio of 2.60, a quick ratio of 1.25 and a debt-to-equity ratio of 0.20. Federal Signal Corporation has a 52 week low of $66.47 and a 52 week high of $130.30. The company has a market cap of $7.90 billion, a PE ratio of 36.18, a PEG ratio of 2.31 and a beta of 1.30.

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, beating the consensus estimate of $1.06 by $0.11. Federal Signal had a net margin of 11.22% and a return on equity of 18.91%. The firm had revenue of $564.60 million during the quarter, compared to the consensus estimate of $537.24 million. During the same quarter in the previous year, the firm posted $0.95 earnings per share. The company's revenue was up 15.1% on a year-over-year basis. Equities research analysts predict that Federal Signal Corporation will post 3.34 EPS for the current year.

Federal Signal announced that its board has authorized a stock buyback plan on Tuesday, April 22nd that authorizes the company to buyback $150.00 million in shares. This buyback authorization authorizes the conglomerate to buy up to 3.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Federal Signal Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Stockholders of record on Friday, August 15th will be paid 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 payout ratio is currently 15.60%.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Wall Street Zen raised Federal Signal from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. KeyCorp reaffirmed a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. Raymond James Financial upped their target price on Federal Signal from $120.00 to $145.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. DA Davidson upped their target price on Federal Signal from $100.00 to $112.00 and gave the company a "neutral" rating in a research note on Thursday, July 31st. Finally, CJS Securities reaffirmed a "market perform" rating and set a $125.00 target price on shares of Federal Signal in a research note on Thursday, July 31st. Three analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price 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.