Federal Signal (NYSE:FSS) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Federal Signal from “buy” to “hold,” although the broader analyst consensus remains “Buy” with an average price target of $137.33.
• Federal Signal reported quarterly EPS of $1.42, beating the $1.29 estimate, while revenue rose 18.7% year over year to $670.2 million.
• The company raised fiscal 2026 EPS guidance to $5.12–$5.30, and institutional investors own approximately 92.73% of its shares.

Federal Signal (NYSE:FSS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts also recently weighed in on the company. Zacks Research raised Federal Signal from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 4th. Weiss Ratings raised Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, June 23rd. DA Davidson increased their price objective on Federal Signal from $125.00 to $132.00 and gave the stock a "neutral" rating in a report on Friday, May 1st. Finally, KeyCorp reaffirmed an "overweight" rating and set a $140.00 price objective on shares of Federal Signal in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $137.33.

Federal Signal Trading Up 0.3%

NYSE FSS opened at $124.91 on Friday. The company has a current ratio of 2.74, a quick ratio of 1.29 and a debt-to-equity ratio of 0.30. Federal Signal has a 1-year low of $101.18 and a 1-year high of $134.51. The firm's fifty day simple moving average is $117.17 and its 200-day simple moving average is $114.89. The company has a market capitalization of $7.62 billion, a PE ratio of 26.92, a price-to-earnings-growth ratio of 1.80 and a beta of 1.23.

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 (EPS) for the quarter, beating analysts' consensus estimates of $1.29 by $0.13. Federal Signal had a return on equity of 21.36% and a net margin of 11.66%.The firm had revenue of $670.20 million during the quarter, compared to analysts' expectations of $667.04 million. During the same quarter last year, the firm earned $1.17 earnings per share. The business's revenue for the quarter was up 18.7% on a year-over-year basis. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. As a group, sell-side analysts anticipate that Federal Signal will post 4.94 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in Federal Signal by 2.1% during the fourth quarter. Vanguard Group Inc. now owns 6,840,396 shares of the conglomerate's stock valued at $742,799,000 after acquiring an additional 138,855 shares during the period. Capital World Investors increased its stake in shares of Federal Signal by 4.4% in the fourth quarter. Capital World Investors now owns 2,362,294 shares of the conglomerate's stock worth $256,522,000 after purchasing an additional 100,000 shares during the period. State Street Corp increased its stake in shares of Federal Signal by 0.4% in the second quarter. State Street Corp now owns 2,266,523 shares of the conglomerate's stock worth $241,203,000 after purchasing an additional 7,982 shares during the period. Invesco Ltd. lifted its position in shares of Federal Signal by 10.2% during the 4th quarter. Invesco Ltd. now owns 2,168,788 shares of the conglomerate's stock worth $235,509,000 after purchasing an additional 201,440 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Federal Signal by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 1,725,757 shares of the conglomerate's stock worth $187,427,000 after purchasing an additional 18,587 shares during the last quarter. Institutional investors own 92.73% of the company's stock.

More Federal Signal News

Here are the key news stories impacting Federal Signal this week:

• Positive Sentiment: Quarterly earnings surpassed estimates. Federal Signal reported second-quarter adjusted EPS of $1.42, up from $1.17 a year earlier and above analyst estimates of approximately $1.28-$1.29. Revenue increased 18.7% year over year to $670.2 million, slightly exceeding the $667.0 million consensus. Federal Signal Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Record operating performance and stronger demand supported the outlook. The company reported 19% net-sales growth, a 21% improvement in operating income, strong cash generation and an 18% increase in orders, indicating healthy customer demand and operational execution. Federal Signal Reports Record Second Quarter Results
• Positive Sentiment: Full-year EPS guidance was raised above expectations. Federal Signal now expects fiscal 2026 EPS of $5.12-$5.30, compared with the analyst consensus of $4.97. Revenue guidance of $2.6-$2.7 billion was broadly in line with consensus, but the higher profit outlook is a key bullish signal for investors. Federal Signal Posts Q2 Sales in Line With Estimates
• Neutral Sentiment: The earnings call and related presentations provided additional commentary on the quarterly performance, order trends and updated outlook, but the available reports did not identify a material negative development. Federal Signal Q2 2026 Earnings Call Transcript

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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