Carderock Capital Management Inc. Makes New Investment in Federal Signal Corporation $FSS

Key Points

• Carderock Capital Management bought a new stake of 15,586 shares in Federal Signal in Q4, valued at about $1.692 million.
• Q4 results beat expectations: Federal Signal reported $1.16 EPS versus $1.08 expected and revenue of $597.1M (+26.5% y/y), and set FY2026 guidance of $4.50–$4.80 EPS.
• Institutional ownership is high at 92.73% with major funds (State Street, Invesco, First Trust, Wasatch, Allianz) adding or initiating positions; analysts hold a consensus "Moderate Buy" with a $131.75 price target, and the company raised its quarterly dividend to $0.15.

Carderock Capital Management Inc. bought a new stake in shares of Federal Signal Corporation (NYSE:FSS - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 15,586 shares of the conglomerate's stock, valued at approximately $1,692,000.

A number of other hedge funds have also recently made changes to their positions in the stock. State Street Corp grew its holdings in shares of Federal Signal by 0.4% in the second quarter. State Street Corp now owns 2,266,523 shares of the conglomerate's stock worth $241,203,000 after purchasing an additional 7,982 shares during the last quarter. Invesco Ltd. lifted its holdings in Federal Signal by 16.0% during the 3rd quarter. Invesco Ltd. now owns 1,967,348 shares of the conglomerate's stock valued at $234,095,000 after buying an additional 271,878 shares in the last quarter. First Trust Advisors LP boosted its position in Federal Signal by 49.6% in the 2nd quarter. First Trust Advisors LP now owns 1,501,431 shares of the conglomerate's stock valued at $159,782,000 after buying an additional 497,652 shares during the period. Wasatch Advisors LP purchased a new stake in Federal Signal in the 3rd quarter valued at about $174,476,000. Finally, Allianz Asset Management GmbH bought a new position in Federal Signal in the 3rd quarter worth about $108,884,000. 92.73% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on FSS. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Federal Signal in a research report on Monday, December 29th. CJS Securities upgraded Federal Signal from a "market perform" rating to a "market outperform" rating and set a $140.00 price target for the company in a report on Thursday, February 26th. KeyCorp upgraded Federal Signal from a "sector weight" rating to an "overweight" rating and set a $130.00 price objective on the stock in a report on Tuesday, March 10th. Finally, Wall Street Zen lowered Federal Signal from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $131.75.

Federal Signal Stock Up 2.8%

Shares of Federal Signal stock opened at $108.57 on Tuesday. The company has a debt-to-equity ratio of 0.41, a current ratio of 3.02 and a quick ratio of 1.35. The stock has a market cap of $6.61 billion, a price-to-earnings ratio of 27.07, a PEG ratio of 1.60 and a beta of 1.32. The firm's 50-day moving average is $113.49 and its two-hundred day moving average is $115.32. Federal Signal Corporation has a 1 year low of $66.47 and a 1 year high of $132.89.

Federal Signal (NYSE:FSS - Get Free Report) last announced its earnings results on Wednesday, February 25th. The conglomerate reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.08 by $0.08. Federal Signal had a return on equity of 20.14% and a net margin of 11.31%.The business had revenue of $597.10 million for the quarter, compared to analysts' expectations of $551.36 million. During the same quarter last year, the firm earned $0.87 EPS. The business's revenue for the quarter was up 26.5% on a year-over-year basis. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. As a group, research analysts expect that Federal Signal Corporation will post 3.34 earnings per share for the current fiscal year.

Federal Signal Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 26th. Investors of record on Friday, March 13th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, March 13th. This is an increase from Federal Signal's previous quarterly dividend of $0.14. This represents a $0.60 dividend on an annualized basis and a yield of 0.6%. Federal Signal's dividend payout ratio is 14.96%.

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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