Federal Signal (NYSE:FSS) to Buyback $150.00 million in Stock

Federal Signal (NYSE:FSS) announced that its Board of Directors has initiated a stock buyback plan on Tuesday, April 22nd, RTT News reports. The company plans to buyback $150.00 million in shares. This buyback authorization authorizes the conglomerate to purchase up to 3.3% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Federal Signal Stock Up 1.3 %

Shares of Federal Signal stock opened at $73.61 on Wednesday. Federal Signal has a twelve month low of $66.47 and a twelve month high of $102.18. The stock has a market cap of $4.50 billion, a price-to-earnings ratio of 21.34, a price-to-earnings-growth ratio of 1.85 and a beta of 1.11. The company has a current ratio of 2.83, a quick ratio of 1.36 and a debt-to-equity ratio of 0.19. The company has a fifty day moving average price of $79.66 and a 200 day moving average price of $88.74.

Federal Signal (NYSE:FSS) last issued its earnings results on Wednesday, February 26th. The conglomerate reported $0.87 earnings per share for the quarter, hitting the consensus estimate of $0.87. The company had revenue of $472.00 million during the quarter, compared to the consensus estimate of $481.90 million. Federal Signal had a return on equity of 18.46% and a net margin of 11.57%. Equities research analysts forecast that Federal Signal will post 3.34 earnings per share for the current fiscal year.

Federal Signal Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 30th. Investors of record on Friday, May 16th will be issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 0.76%. Federal Signal’s payout ratio is 15.95%.

Analysts Set New Price Targets

FSS has been the topic of several research reports. Raymond James cut their target price on Federal Signal from $105.00 to $100.00 and set an “outperform” rating on the stock in a research report on Monday, April 14th. StockNews.com lowered Federal Signal from a “buy” rating to a “hold” rating in a research note on Saturday, March 1st.

Insider Buying and Selling

In other Federal Signal news, CEO Jennifer L. Sherman acquired 1,250 shares of the stock in a transaction on Friday, February 28th. The stock was purchased at an average price of $82.32 per share, for a total transaction of $102,900.00. Following the purchase, the chief executive officer now directly owns 559,183 shares in the company, valued at $46,031,944.56. This trade represents a 0.22 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 3.30% of the stock is currently owned by insiders.

About Federal Signal

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.