Invesco Ltd. Sells 251,336 Shares of Federal Signal Corporation $FSS

Key Points

• Invesco Ltd. reduced its stake in Federal Signal Corporation by 11.4% in the first quarter, now holding approximately 3.19% of the company, valued at about $143.27 million.
• Federal Signal announced a stock buyback program allowing up to $150 million in repurchases, indicating management's belief that the stock is currently undervalued.
• The company reported a quarterly earnings per share of $1.17, exceeding analyst estimates, with a year-over-year revenue increase of 15.1%.

Invesco Ltd. reduced its stake in shares of Federal Signal Corporation (NYSE:FSS - Free Report) by 11.4% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 1,947,864 shares of the conglomerate's stock after selling 251,336 shares during the period. Invesco Ltd. owned approximately 3.19% of Federal Signal worth $143,265,000 at the end of the most recent reporting period.

Several other institutional investors also recently made changes to their positions in FSS. Wells Fargo & Company MN boosted its position in shares of Federal Signal by 30.3% in the 4th quarter. Wells Fargo & Company MN now owns 75,084 shares of the conglomerate's stock worth $6,937,000 after buying an additional 17,462 shares in the last quarter. Raymond James Financial Inc. purchased a new position in shares of Federal Signal during the 4th quarter worth about $36,636,000. Townsquare Capital LLC acquired a new stake in Federal Signal during the 4th quarter worth approximately $976,000. Summit Investment Advisors Inc. increased its position in Federal Signal by 3.3% during the 4th quarter. Summit Investment Advisors Inc. now owns 6,292 shares of the conglomerate's stock worth $581,000 after purchasing an additional 200 shares in the last quarter. Finally, Barclays PLC increased its position in Federal Signal by 18.1% during the 4th quarter. Barclays PLC now owns 171,411 shares of the conglomerate's stock worth $15,838,000 after purchasing an additional 26,223 shares in the last quarter. 92.73% of the stock is currently owned by hedge funds and other institutional investors.

Federal Signal Stock Performance

FSS traded down $0.27 on Tuesday, hitting $126.08. The company had a trading volume of 30,950 shares, compared to its average volume of 585,925. Federal Signal Corporation has a 1-year low of $66.47 and a 1-year high of $130.30. The stock has a market cap of $7.66 billion, a price-to-earnings ratio of 35.13, a price-to-earnings-growth ratio of 2.21 and a beta of 1.30. The company's fifty day moving average price is $111.84 and its 200 day moving average price is $94.56. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.60 and a quick ratio of 1.25.

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, beating analysts' consensus estimates of $1.06 by $0.11. The business had revenue of $564.60 million for 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%.Federal Signal's quarterly revenue was up 15.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.95 earnings per share. Federal Signal has set its FY 2025 guidance at 3.920-4.100 EPS. Equities analysts predict that Federal Signal Corporation will post 3.34 earnings per share for the current fiscal year.

Federal Signal Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 28th. Investors of record on Friday, August 15th will be given a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Friday, August 15th. Federal Signal's dividend payout ratio (DPR) is currently 15.60%.

Federal Signal declared that its board has authorized a share buyback plan on Tuesday, April 22nd that authorizes the company to repurchase $150.00 million in shares. This repurchase authorization authorizes the conglomerate to purchase up to 3.3% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. DA Davidson upped their price target on Federal Signal from $100.00 to $112.00 and gave the stock a "neutral" rating in a report on Thursday, July 31st. Raymond James Financial raised their price target on Federal Signal from $120.00 to $145.00 and gave the company an "outperform" rating 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. CJS Securities reaffirmed a "market perform" rating and set a $125.00 target price on shares of Federal Signal in a report on Thursday, July 31st. 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 given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average 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.