Federal Signal (NYSE:FSS) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research has downgraded Federal Signal from a "strong-buy" rating to a "hold" rating, reflecting a shift in analyst sentiment regarding the stock.
• Despite the downgrade from Zacks, other research firms like Wall Street Zen and Raymond James have issued more favorable ratings, with target prices rising to as much as $145.00.
• Federal Signal reported strong quarterly earnings, with an EPS of $1.17, exceeding expectations, and forecasted FY 2025 EPS guidance in the range of 3.920-4.100.

Federal Signal (NYSE:FSS - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

Several other research firms have also recently issued reports on FSS. Wall Street Zen upgraded shares of Federal Signal from a "hold" rating to a "buy" rating in a research note on Saturday, August 2nd. KeyCorp restated a "sector weight" rating on shares of Federal Signal in a research note on Friday, July 11th. DA Davidson upped their target price on shares of Federal Signal from $100.00 to $112.00 and gave the company a "neutral" rating in a research note on Thursday, July 31st. Raymond James Financial upped their target price on shares of Federal Signal from $120.00 to $145.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. Finally, CJS Securities restated a "market perform" rating and set a $125.00 target price on shares of Federal Signal in a research note on Thursday, July 31st. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Federal Signal has an average rating of "Hold" and an average target price of $123.00.

Federal Signal Stock Performance

Shares of Federal Signal stock opened at $118.92 on Monday. The stock has a market cap of $7.23 billion, a price-to-earnings ratio of 33.13, a PEG ratio of 2.12 and a beta of 1.32. The firm's 50-day moving average is $123.33 and its 200 day moving average is $102.15. Federal Signal has a 1 year low of $66.47 and a 1 year high of $130.30. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.60 and a quick ratio of 1.25.

Federal Signal (NYSE:FSS - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The conglomerate reported $1.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.06 by $0.11. The company had revenue of $564.60 million for the quarter, compared to analysts' expectations of $537.24 million. Federal Signal had a net margin of 11.22% and a return on equity of 18.91%. Federal Signal's revenue was up 15.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.95 EPS. Federal Signal has set its FY 2025 guidance at 3.920-4.100 EPS. Sell-side analysts anticipate that Federal Signal will post 3.34 EPS for the current fiscal year.

Institutional Investors Weigh In On Federal Signal

Hedge funds and other institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC increased its holdings in Federal Signal by 140.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 243 shares of the conglomerate's stock worth $26,000 after acquiring an additional 142 shares in the last quarter. Opal Wealth Advisors LLC purchased a new stake in Federal Signal in the 1st quarter worth approximately $29,000. Bessemer Group Inc. increased its holdings in Federal Signal by 78.4% in the 1st quarter. Bessemer Group Inc. now owns 421 shares of the conglomerate's stock worth $31,000 after acquiring an additional 185 shares in the last quarter. Physician Wealth Advisors Inc. increased its holdings in Federal Signal by 47.0% in the 2nd quarter. Physician Wealth Advisors Inc. now owns 291 shares of the conglomerate's stock worth $31,000 after acquiring an additional 93 shares in the last quarter. Finally, MAI Capital Management increased its holdings in Federal Signal by 1,003.8% in the 2nd quarter. MAI Capital Management now owns 287 shares of the conglomerate's stock worth $31,000 after acquiring an additional 261 shares in the last quarter. Hedge funds and other institutional investors own 92.73% of the company's stock.

Federal Signal Company Profile

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.

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