California State Teachers Retirement System Acquires 8,757,525 Shares of Federal Signal Corporation $FSS

Key Points

• California State Teachers Retirement System increased its Federal Signal stake by 13,113.4%, purchasing 8.76 million additional shares. It now owns 8.82 million shares, or 14.46% of the company, while institutional investors and hedge funds collectively own 92.73%.
• Federal Signal reported strong quarterly results, with revenue up 18.7% year over year to $670.2 million and EPS of $1.42, exceeding analyst expectations of $1.29. Management issued fiscal 2026 EPS guidance of $5.12 to $5.30.
• The company paid a quarterly dividend of $0.15 per share, equal to an annualized $0.60 and a 0.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $140.50, although some firms recently downgraded the stock to “Hold.”

California State Teachers Retirement System lifted its stake in Federal Signal Corporation (NYSE:FSS - Free Report) by 13,113.4% during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 8,824,308 shares of the conglomerate's stock after purchasing an additional 8,757,525 shares during the period. California State Teachers Retirement System owned 14.46% of Federal Signal worth $1,133,835,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in FSS. First Trust Advisors LP boosted its stake in 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 acquiring an additional 124,270 shares during the last quarter. Geode Capital Management LLC increased its stake in Federal Signal by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 1,725,757 shares of the conglomerate's stock valued at $187,427,000 after purchasing an additional 18,587 shares in the last quarter. Deutsche Bank AG bought a new stake in Federal Signal in the second quarter valued at approximately $9,602,000. Montanaro Asset Management Ltd raised its holdings in Federal Signal by 65.9% in the fourth quarter. Montanaro Asset Management Ltd now owns 68,500 shares of the conglomerate's stock worth $7,438,000 after purchasing an additional 27,200 shares during the period. Finally, Vaughan Nelson Investment Management L.P. acquired a new stake in Federal Signal in the first quarter worth $57,749,000. 92.73% of the stock is owned by institutional investors and hedge funds.

Federal Signal Trading Up 0.6%

FSS opened at $114.16 on Friday. The stock has a market capitalization of $6.97 billion, a P/E ratio of 24.60, a P/E/G ratio of 1.56 and a beta of 1.23. Federal Signal Corporation has a 12 month low of $101.18 and a 12 month high of $134.51. The firm's fifty day simple moving average is $120.74 and its 200 day simple moving average is $116.32. 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 released its quarterly earnings results on Thursday, July 30th. The conglomerate reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.13. The firm 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 revenue for the quarter was up 18.7% on a year-over-year basis. During the same quarter last year, the business posted $1.17 EPS. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. As a group, research analysts anticipate that Federal Signal Corporation will post 5.23 EPS for the current fiscal year.

Federal Signal Announces Dividend

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

Analysts Set New Price Targets

Several equities analysts have recently issued reports on FSS shares. Weiss Ratings raised shares of Federal Signal from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, June 23rd. Wall Street Zen downgraded Federal Signal from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Zacks Research cut Federal Signal from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 12th. Finally, Citigroup initiated coverage on Federal Signal in a report on Monday, August 17th. They issued a "buy" rating and a $150.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $140.50.

Insider Transactions at Federal Signal

In other Federal Signal news, VP Diane Bonina sold 14,856 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was 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 owned 15,689 shares of the company's stock, valued at $2,046,473.16. This represents a 48.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 3.30% of the company's stock.

About Federal Signal

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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