Carderock Capital Management Inc. Buys 40,572 Shares of Federal Signal Corporation $FSS

Key Points

• Carderock Capital Management increased its Federal Signal stake by 118.6% in the second quarter, purchasing 40,572 additional shares for a total holding of 74,774 shares valued at approximately $9.6 million.
• Federal Signal reported a strong quarter, with earnings of $1.42 per share exceeding estimates and revenue rising 18.7% year over year to $670.2 million. The company issued full-year 2026 EPS guidance of $5.12–$5.30.
• Shares opened at $132.06, near their 52-week high, while analysts maintain a consensus “Buy” rating with an average price target of $137.33. Federal Signal also declared a quarterly dividend of $0.15 per share.

Carderock Capital Management Inc. raised its stake in Federal Signal Corporation (NYSE:FSS - Free Report) by 118.6% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 74,774 shares of the conglomerate's stock after purchasing an additional 40,572 shares during the period. Federal Signal accounts for approximately 2.1% of Carderock Capital Management Inc.'s investment portfolio, making the stock its 18th biggest position. Carderock Capital Management Inc. owned approximately 0.12% of Federal Signal worth $9,608,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in shares of Federal Signal by 2.1% during the 4th quarter. Vanguard Group Inc. now owns 6,840,396 shares of the conglomerate's stock worth $742,799,000 after buying an additional 138,855 shares during the period. Capital World Investors raised its holdings in Federal Signal by 4.4% in the 4th quarter. Capital World Investors now owns 2,362,294 shares of the conglomerate's stock valued at $256,522,000 after acquiring an additional 100,000 shares during the period. State Street Corp raised its holdings in Federal Signal by 0.4% in the 2nd quarter. State Street Corp now owns 2,266,523 shares of the conglomerate's stock valued at $241,203,000 after acquiring an additional 7,982 shares during the period. Invesco Ltd. lifted its position in Federal Signal by 10.2% during the fourth quarter. Invesco Ltd. now owns 2,168,788 shares of the conglomerate's stock worth $235,509,000 after acquiring an additional 201,440 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in 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 acquiring an additional 18,587 shares during the last quarter. 92.73% of the stock is owned by institutional investors.

Federal Signal Stock Up 2.3%

Shares of FSS opened at $132.06 on Wednesday. The firm has a 50 day simple moving average of $117.80 and a two-hundred day simple moving average of $115.07. 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 one year low of $101.18 and a one year high of $134.51. The company has a market cap of $8.06 billion, a P/E ratio of 28.46, a P/E/G ratio of 1.76 and a beta of 1.24.

Federal Signal (NYSE:FSS - Get Free Report) last issued its earnings results on Thursday, July 30th. The conglomerate reported $1.42 earnings per share 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 the consensus estimate of $667.04 million. During the same quarter last year, the business posted $1.17 EPS. The company's revenue 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. Research analysts forecast that Federal Signal Corporation will post 5.23 EPS for the current fiscal 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. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.60 annualized dividend and a yield of 0.5%. Federal Signal's dividend payout ratio (DPR) is 12.93%.

Wall Street Analysts Forecast Growth

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

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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