Neumeier Poma Investment Counsel LLC Reduces Position in Federal Signal Corporation (NYSE:FSS)

Key Points

• Neumeier Poma Investment Counsel LLC has decreased its stake in Federal Signal Corporation by 3.0%, resulting in ownership of 317,738 shares valued at approximately $23.37 million.
• Federal Signal reported a net margin of 11.22% and a 15.1% increase in revenue year-over-year for the quarter, exceeding analyst expectations with earnings per share of $1.17.
• The company has initiated a share repurchase plan worth $150 million, indicating confidence from the board regarding the stock's current valuation.

Neumeier Poma Investment Counsel LLC cut its position in Federal Signal Corporation (NYSE:FSS - Free Report) by 3.0% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 317,738 shares of the conglomerate's stock after selling 9,960 shares during the quarter. Federal Signal accounts for about 2.5% of Neumeier Poma Investment Counsel LLC's portfolio, making the stock its 17th largest holding. Neumeier Poma Investment Counsel LLC owned about 0.52% of Federal Signal worth $23,370,000 at the end of the most recent reporting period.

A number of other large investors have also recently modified their holdings of FSS. Opal Wealth Advisors LLC purchased a new stake in Federal Signal in the 1st quarter valued at about $29,000. Bessemer Group Inc. boosted its position 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 acquiring an additional 185 shares during the period. Harbor Investment Advisory LLC grew its stake 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 acquiring an additional 440 shares in the last quarter. CoreCap Advisors LLC increased its holdings in Federal Signal by 19.9% during the 4th quarter. CoreCap Advisors LLC now owns 875 shares of the conglomerate's stock worth $81,000 after acquiring an additional 145 shares during the period. Finally, Creative Financial Designs Inc. ADV boosted its stake in Federal Signal by 16.9% during 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 during the period. Institutional investors and hedge funds own 92.73% of the company's stock.

Federal Signal Trading Up 0.2%

Shares of FSS stock traded up $0.23 on Monday, reaching $125.62. 140,874 shares of the company's stock were exchanged, compared to its average volume of 585,626. The company's fifty day simple moving average is $108.32 and its 200 day simple moving average is $93.34. The stock has a market capitalization of $7.64 billion, a PE ratio of 34.98, a P/E/G ratio of 2.23 and a beta of 1.30. 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 Corporation has a 52 week low of $66.47 and a 52 week high of $128.50.

Federal Signal (NYSE:FSS - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The conglomerate reported $1.17 EPS for the quarter, topping 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 firm had revenue of $564.60 million for the quarter, compared to analysts' expectations of $537.24 million. During the same period in the prior year, the business posted $0.95 earnings per share. The business's revenue for the quarter was up 15.1% on a year-over-year basis. As a group, analysts forecast that Federal Signal Corporation will post 3.34 EPS for the current year.

Federal Signal declared that its Board of Directors has authorized a share repurchase program on Tuesday, April 22nd that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the conglomerate to buy up to 3.3% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Federal Signal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Shareholders of record on Friday, August 15th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend 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%.

Analysts Set New Price Targets

FSS has been the topic of a number of analyst reports. Wall Street Zen upgraded shares of Federal Signal from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. CJS Securities reiterated a "market perform" rating and issued a $125.00 target price on shares of Federal Signal in a research note on Thursday, July 31st. DA Davidson lifted their price target 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. Raymond James Financial boosted their price target on Federal Signal from $120.00 to $145.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. Finally, KeyCorp reaffirmed a "sector weight" rating on shares of Federal Signal in a research report on Friday, July 11th. Three research analysts have rated the stock with a hold rating and two have given a buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus 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.