Federal Signal Corporation (NYSE:FSS) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Consensus "Moderate Buy": Six analysts average a Moderate Buy rating (4 buys, 2 holds) with a one‑year price target of $131.75.
• Quarterly beat and upbeat guidance: Federal Signal reported $1.16 EPS vs $1.08 expected and $597.1M revenue vs $551.36M (revenue +26.5% YoY) and set FY2026 guidance of $4.50–$4.80 EPS.
• High institutional ownership and dividend raise: Institutions/hedge funds own ~92.73% of shares, and the company raised its quarterly dividend to $0.15 (annualized $0.60, ~0.5% yield, DPR ~15%).

Federal Signal Corporation (NYSE:FSS - Get Free Report) has been given an average rating of "Moderate Buy" by the six research firms that are covering the company, MarketBeat.com reports. Two equities research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $131.75.

A number of equities research analysts recently commented on the company. KeyCorp upgraded Federal Signal from a "sector weight" rating to an "overweight" rating and set a $130.00 target price on the stock in a research report on Tuesday, March 10th. CJS Securities upgraded Federal Signal from a "market perform" rating to a "market outperform" rating and set a $140.00 target price on the stock in a research report on Thursday, February 26th. Wall Street Zen downgraded Federal Signal from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Federal Signal in a research report on Monday, December 29th.

Institutional Investors Weigh In On Federal Signal

A number of hedge funds have recently made changes to their positions in the company. Royal Bank of Canada raised its position in Federal Signal by 3.5% during the first quarter. Royal Bank of Canada now owns 93,618 shares of the conglomerate's stock valued at $6,886,000 after purchasing an additional 3,153 shares during the period. AQR Capital Management LLC raised its position in Federal Signal by 10.9% during the first quarter. AQR Capital Management LLC now owns 35,702 shares of the conglomerate's stock valued at $2,626,000 after purchasing an additional 3,520 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Federal Signal by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,822 shares of the conglomerate's stock valued at $2,635,000 after purchasing an additional 1,594 shares during the period. NewEdge Advisors LLC raised its position in Federal Signal by 15.9% during the first quarter. NewEdge Advisors LLC now owns 1,838 shares of the conglomerate's stock valued at $135,000 after purchasing an additional 252 shares during the period. Finally, Empowered Funds LLC purchased a new stake in Federal Signal during the first quarter valued at approximately $1,119,000. 92.73% of the stock is currently owned by hedge funds and other institutional investors.

Federal Signal Price Performance

Shares of Federal Signal stock opened at $114.31 on Friday. The stock's 50-day simple moving average is $112.80 and its 200-day simple moving average is $113.65. Federal Signal has a 52 week low of $71.92 and a 52 week high of $132.89. The company has a market capitalization of $6.96 billion, a price-to-earnings ratio of 28.51, a PEG ratio of 1.67 and a beta of 1.33. The company has a quick ratio of 1.35, a current ratio of 3.02 and a debt-to-equity ratio of 0.41.

Federal Signal (NYSE:FSS - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The conglomerate reported $1.16 EPS for the quarter, beating the consensus estimate of $1.08 by $0.08. The business had revenue of $597.10 million for the quarter, compared to the consensus estimate of $551.36 million. Federal Signal had a return on equity of 20.14% and a net margin of 11.31%.The business's revenue was up 26.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.87 earnings per share. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. As a group, analysts expect that Federal Signal will post 3.34 earnings per share for the current fiscal year.

Federal Signal Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Friday, March 13th were given a $0.15 dividend. This is an increase from Federal Signal's previous quarterly dividend of $0.14. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Friday, March 13th. Federal Signal's dividend payout ratio (DPR) is presently 14.96%.

About Federal Signal

Federal Signal Corporation NYSE: FSS, headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.

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