Federal Signal Corporation $FSS Shares Purchased by Mitsubishi UFJ Asset Management UK Ltd.

Key Points

• Mitsubishi UFJ Asset Management UK Ltd. increased its ownership in Federal Signal Corporation by 120%, acquiring an additional 6,000 shares, bringing its total to 11,000 shares worth approximately $809,000.
• Several other institutional investors also boosted their stakes in Federal Signal, with 92.73% of the stock now owned by institutional investors.
• Federal Signal recently declared a quarterly dividend of $0.14 per share and initiated a share buyback plan for $150 million, signaling management's belief that the stock is undervalued.

Mitsubishi UFJ Asset Management UK Ltd. raised its stake in shares of Federal Signal Corporation (NYSE:FSS - Free Report) by 120.0% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 11,000 shares of the conglomerate's stock after purchasing an additional 6,000 shares during the period. Mitsubishi UFJ Asset Management UK Ltd.'s holdings in Federal Signal were worth $809,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Opal Wealth Advisors LLC bought a new position in shares of Federal Signal in the 1st quarter valued at about $29,000. Bessemer Group Inc. increased its holdings in Federal Signal by 78.4% during 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 during the period. Harbor Investment Advisory LLC increased its holdings in Federal Signal by 201.8% during 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 during the period. CoreCap Advisors LLC increased its holdings in Federal Signal by 19.9% during 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 during the period. Finally, Creative Financial Designs Inc. ADV boosted its stake in 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 acquiring an additional 162 shares in the last quarter. Institutional investors own 92.73% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. KeyCorp restated a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. Raymond James Financial raised their target price 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. CJS Securities restated a "market perform" rating and issued a $125.00 target price on shares of Federal Signal in a research note on Thursday, July 31st. Wall Street Zen upgraded shares of Federal Signal from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. Finally, DA Davidson lifted their price objective on shares of Federal Signal from $100.00 to $112.00 and gave the stock a "neutral" rating in a research note on Thursday, July 31st. Three equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company's stock. According to MarketBeat.com, Federal Signal currently has an average rating of "Hold" and a consensus price target of $123.00.

Federal Signal Stock Performance

Shares of NYSE:FSS traded up $1.87 on Monday, hitting $126.31. 289,954 shares of the company were exchanged, compared to its average volume of 589,502. The firm has a market capitalization of $7.68 billion, a P/E ratio of 35.18, a price-to-earnings-growth ratio of 2.21 and a beta of 1.30. The stock's 50 day moving average price is $111.32 and its 200 day moving average price is $94.37. Federal Signal Corporation has a 1-year low of $66.47 and a 1-year high of $130.30. 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 (NYSE:FSS - Get Free Report) last posted its earnings results 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. Federal Signal had a net margin of 11.22% and a return on equity of 18.91%. The company had revenue of $564.60 million during the quarter, compared to the consensus estimate of $537.24 million. During the same period in the previous year, the firm posted $0.95 earnings per share. The firm's quarterly revenue was up 15.1% on a year-over-year basis. Sell-side analysts predict that Federal Signal Corporation will post 3.34 EPS for the current year.

Federal Signal announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, April 22nd that allows the company to buyback $150.00 million in shares. This buyback authorization allows the conglomerate to buy up to 3.3% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Federal Signal Dividend Announcement

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

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.