Federal Signal Corporation (NYSE:FSS) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Federal Signal, with three buy ratings, one strong-buy rating and two holds. The average 12-month price target is $140.50, compared with the stock’s reported price of $122.35.
• Federal Signal exceeded quarterly expectations, reporting $1.42 in EPS versus the $1.29 consensus estimate and $670.2 million in revenue. Revenue increased 18.7% year over year, and full-year EPS guidance is $5.12–$5.30.
• The company declared a quarterly dividend of $0.15 per share, equivalent to $0.60 annually and a 0.5% yield. An insider also sold 14,856 shares, while institutional investors and hedge funds own 92.73% of the stock.

Federal Signal Corporation (NYSE:FSS - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the six research firms that are presently covering the company, MarketBeat reports. Two research analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $140.50.

Several research firms have weighed in on FSS. KeyCorp reiterated an "overweight" rating and issued a $140.00 target price on shares of Federal Signal in a report on Thursday, April 30th. Weiss Ratings raised shares of Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, June 23rd. Zacks Research cut shares of Federal Signal from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 12th. Wall Street Zen downgraded Federal Signal from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, Citigroup initiated coverage on Federal Signal in a report on Monday. They set a "buy" rating and a $150.00 target price on the stock.

Federal Signal Stock Performance

Shares of FSS stock opened at $122.35 on Friday. The stock has a market cap of $7.47 billion, a PE ratio of 26.37, a price-to-earnings-growth ratio of 1.67 and a beta of 1.24. The stock has a 50-day moving average of $122.07 and a 200-day moving average of $116.21. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.74 and a quick ratio of 1.21. Federal Signal has a one year low of $101.18 and a one year high of $134.51.

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

Federal Signal Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Friday, August 14th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.5%. Federal Signal's dividend payout ratio (DPR) is currently 12.93%.

Insider Activity at Federal Signal

In other news, VP Diane Bonina sold 14,856 shares of Federal Signal stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $130.44, for a total transaction of $1,937,816.64. Following the transaction, the vice president owned 15,689 shares in the company, valued at $2,046,473.16. The trade was a 48.64% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 3.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Federal Signal

Hedge funds have recently bought and sold shares of the stock. Physician Wealth Advisors Inc. boosted its holdings in shares of Federal Signal by 57.2% in the first quarter. Physician Wealth Advisors Inc. now owns 250 shares of the conglomerate's stock valued at $27,000 after buying an additional 91 shares during the period. New Age Alpha Advisors LLC raised its holdings in shares of Federal Signal by 3.4% during the fourth quarter. New Age Alpha Advisors LLC now owns 2,895 shares of the conglomerate's stock worth $314,000 after acquiring an additional 95 shares during the period. Canada Pension Plan Investment Board raised its holdings in shares of Federal Signal by 10.0% during the second quarter. Canada Pension Plan Investment Board now owns 1,100 shares of the conglomerate's stock worth $117,000 after acquiring an additional 100 shares during the period. Smartleaf Asset Management LLC raised its holdings in shares of Federal Signal by 9.5% during the second quarter. Smartleaf Asset Management LLC now owns 1,245 shares of the conglomerate's stock worth $130,000 after acquiring an additional 108 shares during the period. Finally, UMB Bank n.a. lifted its position in Federal Signal by 50.5% in the 4th quarter. UMB Bank n.a. now owns 331 shares of the conglomerate's stock valued at $36,000 after acquiring an additional 111 shares in the last quarter. 92.73% of the stock is currently owned by institutional investors and hedge funds.

Federal Signal Company Profile

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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