Federal Signal Corporation (NYSE:FSS) Stock Now Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analysts rate Federal Signal a “Moderate Buy”, with three buy ratings, one strong-buy rating and two holds. The average 12-month price target is $140.50, including Citigroup’s $150 target.
• Federal Signal exceeded quarterly expectations, reporting earnings of $1.42 per share versus the $1.29 consensus and revenue of $670.2 million, up 18.7% year over year. Management’s fiscal 2026 EPS guidance is $5.12–$5.30.
• Institutional investors own 92.73% of the stock, while insider ownership stands at 3.30%; Vice President Diane Bonina recently sold 14,856 shares. The company also maintains a quarterly dividend of $0.15, yielding approximately 0.5%.

Shares of Federal Signal Corporation (NYSE:FSS - Get Free Report) have been given a consensus rating of "Moderate Buy" by the six research firms that are currently covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $140.50.

Several research firms have recently weighed in on FSS. Wall Street Zen cut Federal Signal from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Citigroup started coverage on Federal Signal in a research report on Monday, August 17th. They set a "buy" rating and a $150.00 price objective for the company. Zacks Research downgraded Federal Signal from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 12th. Finally, Weiss Ratings raised Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday.

Insider Activity

In related news, VP Diane Bonina sold 14,856 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $130.44, for a total value of $1,937,816.64. Following the transaction, the vice president owned 15,689 shares of the company's stock, valued at approximately $2,046,473.16. This trade represents a 48.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 3.30% of the company's stock.

Institutional Trading of Federal Signal

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of Federal Signal during the 2nd quarter worth $1,236,004,000. Dimensional Fund Advisors LP raised its holdings in Federal Signal by 0.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,208,087 shares of the conglomerate's stock worth $130,633,000 after purchasing an additional 3,546 shares during the period. First Trust Advisors LP lifted its position in Federal Signal by 12.0% during the first quarter. First Trust Advisors LP now owns 1,161,865 shares of the conglomerate's stock valued at $125,644,000 after purchasing an additional 124,270 shares in the last quarter. Congress Asset Management Co. grew its holdings in Federal Signal by 23.2% during the third quarter. Congress Asset Management Co. now owns 894,846 shares of the conglomerate's stock valued at $99,140,000 after purchasing an additional 168,708 shares during the period. Finally, Bank of America Corp DE purchased a new stake in Federal Signal in the second quarter worth about $78,503,000. 92.73% of the stock is owned by hedge funds and other institutional investors.

Federal Signal Stock Performance

Shares of NYSE FSS opened at $113.64 on Friday. The firm's 50-day moving average price is $118.86 and its 200-day moving average price is $116.71. The company has a quick ratio of 1.21, a current ratio of 2.74 and a debt-to-equity ratio of 0.30. The company has a market cap of $6.94 billion, a PE ratio of 24.49, a PEG ratio of 1.55 and a beta of 1.23. Federal Signal has a 52-week low of $101.18 and a 52-week high of $134.51.

Federal Signal (NYSE:FSS - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The conglomerate reported $1.42 earnings per share for the quarter, beating analysts' consensus estimates of $1.29 by $0.13. Federal Signal had a net margin of 11.66% and a return on equity of 21.36%. The company had revenue of $670.20 million for the quarter, compared to the consensus estimate of $667.04 million. During the same quarter in the prior year, the firm earned $1.17 earnings per share. The firm's revenue for the quarter was up 18.7% compared to the same quarter last year. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. As a group, analysts anticipate that Federal Signal will post 5.23 EPS for the current year.

Federal Signal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Friday, August 14th were paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Friday, August 14th. Federal Signal's dividend payout ratio is 12.93%.

About Federal Signal

Federal Signal Corporation is a manufacturer of environmental and safety solutions serving municipalities, government agencies, industrial customers and commercial organizations. The company designs and produces equipment used to maintain infrastructure, manage environmental services and improve public and workplace safety.

Its Environmental Solutions Group offers street sweepers, sewer cleaners, vacuum trucks, hydro-excavation equipment and related products for street, sewer and infrastructure maintenance.

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