Arrowstreet Capital Limited Partnership Takes Position in Federal Signal Corporation $FSS

Key Points

• Arrowstreet Capital acquired 67,035 Federal Signal shares worth approximately $7.25 million, giving it a 0.11% stake; institutional investors and hedge funds collectively own 92.73% of the company.
• Federal Signal’s latest quarterly results exceeded expectations, with EPS of $1.42 and revenue of $670.2 million, up 18.7% year over year. The company raised its fiscal 2026 EPS guidance to $5.12–$5.30.
• Analysts maintain a broadly positive view, with a consensus “Buy” rating and a $137.33 price target versus the stock’s reported $124.91 price. Federal Signal also declared a quarterly dividend of $0.15 per share.

Arrowstreet Capital Limited Partnership acquired a new position in shares of Federal Signal Corporation (NYSE:FSS - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 67,035 shares of the conglomerate's stock, valued at approximately $7,249,000. Arrowstreet Capital Limited Partnership owned approximately 0.11% of Federal Signal at the end of the most recent reporting period.

Several other large investors also recently made changes to their positions in the company. EverSource Wealth Advisors LLC grew its position in 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 during the period. Palladiem LLC acquired a new position in Federal Signal during the fourth quarter worth $27,000. Physician Wealth Advisors Inc. lifted its stake 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 in the last quarter. Caitong International Asset Management Co. Ltd lifted its stake 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. Finally, Covestor Ltd grew its holdings in shares of Federal Signal by 118.0% during the fourth quarter. Covestor Ltd now owns 279 shares of the conglomerate's stock valued at $30,000 after buying an additional 151 shares during the last quarter. 92.73% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have commented on the company. DA Davidson boosted 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. Weiss Ratings upgraded Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, June 23rd. KeyCorp reissued an "overweight" rating and issued a $140.00 price target on shares of Federal Signal in a research report on Thursday, April 30th. Zacks Research upgraded Federal Signal from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 4th. Finally, Wall Street Zen downgraded shares of Federal Signal from a "buy" rating to a "hold" rating in a report on Saturday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Federal Signal has a consensus rating of "Buy" and a consensus price target of $137.33.

Federal Signal Stock Up 0.3%

Shares of NYSE FSS opened at $124.91 on Friday. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.74 and a quick ratio of 1.29. The stock has a market capitalization of $7.62 billion, a PE ratio of 26.92, a P/E/G ratio of 1.81 and a beta of 1.23. Federal Signal Corporation has a one year low of $101.18 and a one year high of $134.51. The business's fifty day moving average price is $117.17 and its 200-day moving average price is $114.89.

Federal Signal (NYSE:FSS - Get Free Report) last announced 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. Federal Signal had a return on equity of 21.36% and a net margin of 11.66%.The company had revenue of $670.20 million during the quarter, compared to analyst estimates of $667.04 million. During the same quarter last year, the firm posted $1.17 EPS. The firm'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. On average, equities research analysts anticipate that Federal Signal Corporation will post 5.23 EPS for the current year.

Federal Signal Announces Dividend

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

Federal Signal News Summary

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

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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