BlackRock Inc. Purchases Shares of 9,619,456 Federal Signal Corporation $FSS

Key Points

• BlackRock acquired 9.62 million Federal Signal shares worth approximately $1.24 billion, giving it a 15.76% stake and making it a major shareholder.
• Federal Signal exceeded quarterly earnings expectations, reporting $1.42 EPS versus the $1.29 consensus and $670.2 million in revenue, up 18.7% year over year. Management guided for fiscal 2026 EPS of $5.12–$5.30.
• The stock has a “Moderate Buy” consensus rating with a $140.50 average price target, while the company announced a quarterly dividend of $0.15 per share, equivalent to a 0.5% annual yield.

BlackRock Inc. purchased a new position in Federal Signal Corporation (NYSE:FSS - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 9,619,456 shares of the conglomerate's stock, valued at approximately $1,236,004,000. BlackRock Inc. owned approximately 15.76% of Federal Signal as of its most recent SEC filing.

A number of other large investors have also modified their holdings of the stock. EverSource Wealth Advisors LLC raised 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 in the last quarter. Palladiem LLC purchased a new position in shares of Federal Signal in the 4th quarter valued at about $27,000. Physician Wealth Advisors Inc. grew its position in shares of Federal Signal by 57.2% during the first quarter. Physician Wealth Advisors Inc. now owns 250 shares of the conglomerate's stock worth $27,000 after buying an additional 91 shares in the last quarter. Caitong International Asset Management Co. Ltd grew its position in shares of Federal Signal by 3,100.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate's stock worth $30,000 after buying an additional 248 shares in the last quarter. 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 buying an additional 151 shares during the period. Hedge funds and other institutional investors own 92.73% of the company's stock.

Federal Signal Trading Down 0.9%

FSS opened at $121.55 on Friday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.21 and a current ratio of 2.74. Federal Signal Corporation has a one year low of $101.18 and a one year high of $134.51. The company has a market cap of $7.42 billion, a P/E ratio of 26.20, a PEG ratio of 1.67 and a beta of 1.24. The business's 50-day simple moving average is $121.81 and its 200-day simple moving average is $116.17.

Federal Signal (NYSE:FSS - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The conglomerate reported $1.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.29 by $0.13. The firm had revenue of $670.20 million during 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 firm's quarterly revenue was up 18.7% compared to the same quarter last year. During the same period in the prior year, the company posted $1.17 earnings per share. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. As a group, equities research analysts expect that Federal Signal Corporation will post 5.23 EPS for the current fiscal year.

Federal Signal Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Friday, August 14th will be issued a $0.15 dividend. The ex-dividend date is Friday, August 14th. This represents a $0.60 annualized dividend and a dividend yield of 0.5%. Federal Signal's dividend payout ratio is presently 12.93%.

Insider Activity

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 value of $1,937,816.64. Following 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 transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 3.30% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on FSS shares. Zacks Research cut shares of Federal Signal from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 12th. KeyCorp reiterated an "overweight" rating and set a $140.00 price target on shares of Federal Signal in a report on Thursday, April 30th. Citigroup began coverage on shares of Federal Signal in a research report on Monday. They issued a "buy" rating and a $150.00 price objective on the stock. Weiss Ratings upgraded shares of Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, June 23rd. Finally, DA Davidson lifted their price objective on shares of Federal Signal from $125.00 to $132.00 and gave the stock a "neutral" rating in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Federal Signal presently has a consensus rating of "Moderate Buy" and a consensus price target of $140.50.

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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