Bank of America Corp DE Purchases Shares of 610,965 Federal Signal Corporation $FSS

Key Points

• Bank of America acquired 610,965 Federal Signal shares in the second quarter, worth approximately $78.5 million and representing a 1.0% stake. Institutional investors collectively own 92.73% of the company.
• Federal Signal exceeded quarterly expectations, reporting EPS of $1.42 versus the $1.29 consensus and revenue of $670.2 million, up 18.7% year over year. Management guided to fiscal 2026 EPS of $5.12–$5.30.
• The company pays a quarterly dividend of $0.15 per share, or $0.60 annually, yielding about 0.5%. Analysts maintain a “Moderate Buy” consensus with an average price target of $140.50, although some firms recently downgraded the stock to “Hold.”

Bank of America Corp DE acquired a new stake in Federal Signal Corporation (NYSE:FSS - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 610,965 shares of the conglomerate's stock, valued at approximately $78,503,000. Bank of America Corp DE owned 1.00% of Federal Signal as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently modified their holdings of FSS. First Trust Advisors LP lifted its position in shares of Federal Signal by 12.0% during the 1st quarter. First Trust Advisors LP now owns 1,161,865 shares of the conglomerate's stock worth $125,644,000 after buying an additional 124,270 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Federal Signal by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 1,725,757 shares of the conglomerate's stock worth $187,427,000 after purchasing an additional 18,587 shares in the last quarter. Deutsche Bank AG purchased a new position in shares of Federal Signal during the second quarter worth approximately $9,602,000. Montanaro Asset Management Ltd lifted its position in Federal Signal by 65.9% during the 4th quarter. Montanaro Asset Management Ltd now owns 68,500 shares of the conglomerate's stock worth $7,438,000 after acquiring an additional 27,200 shares during the period. Finally, Vaughan Nelson Investment Management L.P. purchased a new position in shares of Federal Signal in the 1st quarter valued at approximately $57,749,000. 92.73% of the stock is owned by hedge funds and other institutional investors.

Federal Signal Price Performance

FSS opened at $114.03 on Friday. The company has a fifty day simple moving average of $119.93 and a 200 day simple moving average of $116.21. The firm has a market cap of $6.96 billion, a price-to-earnings ratio of 24.58, a PEG ratio of 1.55 and a beta of 1.23. Federal Signal Corporation has a twelve month low of $101.18 and a twelve month high of $134.51. The company has a current ratio of 2.74, a quick ratio of 1.21 and a debt-to-equity ratio of 0.30.

Federal Signal (NYSE:FSS - Get Free Report) last announced its earnings results on Thursday, July 30th. The conglomerate reported $1.42 earnings per share (EPS) for the quarter, topping 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 business had revenue of $670.20 million for the quarter, compared to analyst estimates of $667.04 million. During the same period in the previous year, the company earned $1.17 earnings per share. The company's revenue for the quarter was up 18.7% compared to the same quarter last year. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. Equities research analysts expect that Federal Signal Corporation will post 5.23 EPS for the current fiscal year.

Federal Signal Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Friday, August 14th were paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Friday, August 14th. Federal Signal's dividend payout ratio is 12.93%.

Insiders Place Their Bets

In other Federal Signal news, VP Diane Bonina sold 14,856 shares of the firm's 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 completion of the transaction, the vice president directly owned 15,689 shares of the company's stock, valued at $2,046,473.16. This trade represents a 48.64% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.30% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities research analysts have commented on FSS shares. Citigroup started coverage on shares of Federal Signal in a research report on Monday, August 17th. They set a "buy" rating and a $150.00 target price on the stock. Wall Street Zen cut shares of Federal Signal from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Zacks Research lowered shares of Federal Signal from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 12th. Finally, Weiss Ratings downgraded shares of Federal Signal from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, September 14th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $140.50.

Federal Signal Company Profile

Federal Signal Corporation NYSE: FSS designs and manufactures equipment and systems that help protect people, maintain infrastructure and improve environmental conditions. The company serves municipal, governmental, industrial and commercial customers with products used in public safety, emergency response, infrastructure maintenance and environmental services.

Its Environmental Solutions Group provides street sweepers, sewer cleaners, vacuum excavators, hydro-excavation equipment, vacuum loaders and related vehicles and systems.

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