Bank of America Corp DE Grows Stake in Federal Signal Corporation $FSS

Key Points

• Bank of America increased its Federal Signal stake by 11.2% in the first quarter, adding 68,736 shares to own 682,765 shares valued at approximately $73.8 million. Institutional investors and hedge funds collectively own 92.73% of FSS.
• Analyst sentiment remains positive, with Federal Signal carrying an average “Buy” rating and a consensus price target of $137.33. Recent ratings included upgrades from Zacks Research and Weiss Ratings, while Wall Street Zen downgraded the stock to “Hold.”
• Federal Signal beat quarterly earnings expectations, reporting $1.42 in EPS and $670.2 million in revenue, with revenue up 18.7% year over year. The company also declared a quarterly dividend of $0.15 per share, yielding approximately 0.5%.

Bank of America Corp DE lifted its holdings in shares of Federal Signal Corporation (NYSE:FSS - Free Report) by 11.2% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 682,765 shares of the conglomerate's stock after acquiring an additional 68,736 shares during the period. Bank of America Corp DE owned 1.12% of Federal Signal worth $73,834,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in FSS. EverSource Wealth Advisors LLC boosted its holdings 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 buying an additional 142 shares in the last quarter. Palladiem LLC purchased a new position in Federal Signal during the 4th quarter worth $27,000. Physician Wealth Advisors Inc. grew its stake in shares of Federal Signal by 57.2% in the 1st 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 last quarter. Caitong International Asset Management Co. Ltd lifted its stake in shares of Federal Signal by 3,100.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate's stock worth $30,000 after acquiring an additional 248 shares during the period. Finally, Covestor Ltd increased its stake in shares of Federal Signal by 118.0% during the fourth quarter. Covestor Ltd now owns 279 shares of the conglomerate's stock worth $30,000 after acquiring an additional 151 shares during the period. 92.73% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

FSS has been the subject of a number of recent analyst reports. DA Davidson raised their price objective on shares of Federal Signal from $125.00 to $132.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. Weiss Ratings raised Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, June 23rd. Wall Street Zen cut Federal Signal from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Zacks Research upgraded Federal Signal from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 4th. Finally, KeyCorp reaffirmed an "overweight" rating and set a $140.00 price objective on shares of Federal Signal in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, Federal Signal presently has an average rating of "Buy" and an average target price of $137.33.

Insider Activity

In related news, VP Diane Bonina sold 14,856 shares of the firm's stock in a transaction that occurred 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 owned 15,689 shares in the company, valued at approximately $2,046,473.16. This trade represents a 48.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 3.30% of the company's stock.

Federal Signal Trading Down 0.0%

Shares of FSS opened at $128.16 on Monday. The company has a debt-to-equity ratio of 0.30, a current ratio of 2.74 and a quick ratio of 1.21. Federal Signal Corporation has a 1-year low of $101.18 and a 1-year high of $134.51. The stock has a market cap of $7.82 billion, a price-to-earnings ratio of 27.62, a price-to-earnings-growth ratio of 1.75 and a beta of 1.24. The firm has a 50 day simple moving average of $118.79 and a 200-day simple moving average of $115.35.

Federal Signal (NYSE:FSS - Get Free Report) last announced its earnings results on Thursday, July 30th. The conglomerate reported $1.42 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 for the quarter, compared to analysts' expectations of $667.04 million. During the same quarter in the prior year, the firm earned $1.17 EPS. Federal Signal's quarterly revenue was up 18.7% on a year-over-year basis. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. Equities analysts forecast that Federal Signal Corporation will post 5.23 EPS for the current fiscal year.

Federal Signal Dividend Announcement

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

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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