Neumeier Poma Investment Counsel LLC Sells 9,960 Shares of 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 lowered its position in Federal Signal Corporation (NYSE:FSS - Free Report) by 3.0% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 317,738 shares of the conglomerate's stock after selling 9,960 shares during the period. Federal Signal accounts for 2.5% of Neumeier Poma Investment Counsel LLC's portfolio, making the stock its 17th largest holding. Neumeier Poma Investment Counsel LLC owned 0.52% of Federal Signal worth $23,370,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Capital World Investors acquired a new position in Federal Signal during the fourth quarter valued at approximately $79,810,000. Raymond James Financial Inc. bought a new position in Federal Signal in the fourth quarter worth $36,636,000. Vaughan Nelson Investment Management L.P. bought a new position in shares of Federal Signal during the first quarter valued at $26,144,000. First Trust Advisors LP lifted its holdings in shares of Federal Signal by 56.5% during the fourth quarter. First Trust Advisors LP now owns 894,136 shares of the conglomerate's stock valued at $82,609,000 after acquiring an additional 322,676 shares during the period. Finally, Invesco Ltd. lifted its holdings in shares of Federal Signal by 12.4% during the fourth quarter. Invesco Ltd. now owns 2,199,200 shares of the conglomerate's stock valued at $203,184,000 after acquiring an additional 242,840 shares during the period. Institutional investors and hedge funds own 92.73% of the company's stock.

Federal Signal Trading Down 0.6%

FSS stock traded down $0.77 during midday trading on Friday, reaching $125.38. The stock had a trading volume of 338,350 shares, compared to its average volume of 911,893. The business has a fifty day simple moving average of $108.32 and a two-hundred day simple moving average of $93.44. The company has a quick ratio of 1.25, a current ratio of 2.60 and a debt-to-equity ratio of 0.20. The firm has a market cap of $7.62 billion, a price-to-earnings ratio of 34.92, a PEG ratio of 2.24 and a beta of 1.30. Federal Signal Corporation has a twelve month low of $66.47 and a twelve month high of $128.50.

Federal Signal (NYSE:FSS - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The conglomerate reported $1.17 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.11. The firm had revenue of $564.60 million during the quarter, compared to analyst estimates of $537.24 million. Federal Signal had a return on equity of 18.91% and a net margin of 11.22%. The company's revenue was up 15.1% on a year-over-year basis. During the same period last year, the company earned $0.95 earnings per share. As a group, research analysts expect that Federal Signal Corporation will post 3.34 EPS for the current fiscal year.

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

Federal Signal Dividend Announcement

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 dividend yield of 0.4%. The ex-dividend date is Friday, August 15th. Federal Signal's dividend payout ratio is 15.60%.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on FSS shares. DA Davidson raised 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. Wall Street Zen upgraded Federal Signal from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. 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. Raymond James Financial raised 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. Finally, KeyCorp restated a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. Three research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $123.00.

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.