Federal Signal (NYSE:FSS) Upgraded by Citigroup to Strong-Buy Rating

Key Points

• Citigroup upgraded Federal Signal to “strong buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $140.50.
• Federal Signal reported quarterly EPS of $1.42, beating estimates of $1.29, while revenue rose 18.7% year over year to $670.2 million.
• The stock opened at $122.22, near its 50-day average of $121.35; company insider Diane Bonina recently sold nearly 14,856 shares at an average price of $130.44.

Federal Signal (NYSE:FSS - Get Free Report) was upgraded by analysts at Citigroup to a "strong-buy" rating in a research note issued on Monday,Zacks.com reports.

A number of other brokerages have also commented on FSS. KeyCorp reiterated an "overweight" rating and issued a $140.00 target price on shares of Federal Signal in a research 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 note on Tuesday, June 23rd. Wall Street Zen cut shares of Federal Signal from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. DA Davidson upped their price target on shares of Federal Signal from $125.00 to $132.00 and gave the company a "neutral" rating in a report on Friday, May 1st. Finally, Zacks Research downgraded Federal Signal from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $140.50.

Federal Signal Price Performance

NYSE FSS opened at $122.22 on Monday. The company has a market cap of $7.46 billion, a price-to-earnings ratio of 26.34, a PEG ratio of 1.72 and a beta of 1.24. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.74 and a quick ratio of 1.21. The stock's fifty day moving average price is $121.35 and its 200 day moving average price is $115.97. Federal Signal has a 1 year low of $101.18 and a 1 year high of $134.51.

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

Insider Transactions at Federal Signal

In related news, VP Diane Bonina sold 14,856 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $130.44, for a total transaction of $1,937,816.64. Following the sale, the vice president directly owned 15,689 shares of the company's stock, valued at approximately $2,046,473.16. This represents a 48.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Company insiders own 3.30% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of FSS. EverSource Wealth Advisors LLC increased its stake in shares of Federal Signal by 140.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 243 shares of the conglomerate's stock valued at $26,000 after purchasing an additional 142 shares in the last quarter. Palladiem LLC acquired a new stake in Federal Signal in the fourth quarter valued at approximately $27,000. Physician Wealth Advisors Inc. grew its holdings in 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 purchasing an additional 91 shares during the period. Covestor Ltd increased its position in shares of Federal Signal by 118.0% in the fourth quarter. Covestor Ltd now owns 279 shares of the conglomerate's stock valued at $30,000 after buying an additional 151 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of Federal Signal by 3,100.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate's stock valued at $30,000 after buying an additional 248 shares in the last quarter. Institutional investors and hedge funds 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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