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

Key Points

• Zacks Research downgraded Federal Signal from “strong buy” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $137.33.
• Federal Signal reported quarterly EPS of $1.42, exceeding estimates of $1.29, while revenue rose 18.7% year over year to $670.2 million. Management provided fiscal 2026 EPS guidance of $5.12–$5.30.
• The stock opened at $123.29, below its 12-month high of $134.51. Institutional investors own 92.73% of the company, while a vice president recently sold nearly 14,856 shares at an average price of $130.44.

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

A number of other brokerages have also commented on FSS. Wall Street Zen lowered Federal Signal from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. KeyCorp reaffirmed an "overweight" rating and issued a $140.00 price objective on shares of Federal Signal in a report on Thursday, April 30th. Weiss Ratings upgraded shares of Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, June 23rd. Finally, DA Davidson raised their target price on shares of Federal Signal from $125.00 to $132.00 and gave the company a "neutral" rating in a research note on Friday, May 1st. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, Federal Signal has a consensus rating of "Moderate Buy" and an average price target of $137.33.

Federal Signal Stock Performance

FSS opened at $123.29 on Wednesday. The company has a current ratio of 2.74, a quick ratio of 1.21 and a debt-to-equity ratio of 0.30. The business's 50 day moving average is $120.33 and its 200-day moving average is $115.71. The stock has a market cap of $7.53 billion, a PE ratio of 26.57, a price-to-earnings-growth ratio of 1.72 and a beta of 1.24. Federal Signal has a twelve month low of $101.18 and a twelve month high of $134.51.

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

Insiders Place Their Bets

In related news, VP Diane Bonina sold 14,856 shares of the firm's 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 completion of the transaction, the vice president owned 15,689 shares of the company's stock, valued at $2,046,473.16. This trade represents a 48.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 3.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Federal Signal

Several large investors have recently made changes to their positions in FSS. Royal Bank of Canada grew its position in Federal Signal by 3.5% in the first quarter. Royal Bank of Canada now owns 93,618 shares of the conglomerate's stock worth $6,886,000 after buying an additional 3,153 shares during the last quarter. AQR Capital Management LLC lifted its position in shares of Federal Signal by 10.9% during the 1st quarter. AQR Capital Management LLC now owns 35,702 shares of the conglomerate's stock valued at $2,626,000 after acquiring an additional 3,520 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Federal Signal by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,822 shares of the conglomerate's stock worth $2,635,000 after acquiring an additional 1,594 shares in the last quarter. NewEdge Advisors LLC boosted its stake in shares of Federal Signal by 15.9% during the 1st quarter. NewEdge Advisors LLC now owns 1,838 shares of the conglomerate's stock worth $135,000 after acquiring an additional 252 shares in the last quarter. Finally, Empowered Funds LLC acquired a new position in shares of Federal Signal in the 1st quarter worth $1,119,000. Institutional investors own 92.73% of the company's stock.

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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