Federal Signal Corporation $FSS Shares Bought by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its stake in Federal Signal by 5.0% in the fourth quarter, ending with 347,069 shares valued at about $37.7 million.
• Federal Signal reported stronger-than-expected quarterly results, with EPS of $1.18 and revenue of $625.6 million, both topping analyst estimates. Revenue also rose 35% year over year.
• Wall Street sentiment remains positive, with several analysts raising ratings and the stock holding a Buy consensus. The average price target now stands at $139.25, above the recent share price of $118.38.

Principal Financial Group Inc. grew its stake in shares of Federal Signal Corporation (NYSE:FSS - Free Report) by 5.0% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 347,069 shares of the conglomerate's stock after purchasing an additional 16,589 shares during the quarter. Principal Financial Group Inc. owned 0.57% of Federal Signal worth $37,688,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently modified their holdings of the company. EverSource Wealth Advisors LLC lifted its stake in shares of Federal Signal by 140.6% during the second quarter. EverSource Wealth Advisors LLC now owns 243 shares of the conglomerate's stock worth $26,000 after purchasing an additional 142 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its stake 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 purchasing an additional 248 shares in the last quarter. CoreCap Advisors LLC lifted its stake in shares of Federal Signal by 50.0% during the third quarter. CoreCap Advisors LLC now owns 300 shares of the conglomerate's stock worth $36,000 after purchasing an additional 100 shares in the last quarter. Danske Bank A S acquired a new position in shares of Federal Signal in the third quarter worth about $48,000. Finally, First Horizon Corp acquired a new position in shares of Federal Signal in the third quarter worth about $86,000. Institutional investors and hedge funds own 92.73% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on FSS. Zacks Research upgraded Federal Signal from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 4th. DA Davidson boosted their price target on Federal Signal from $125.00 to $132.00 and gave the stock a "neutral" rating in a research note on Friday, May 1st. CJS Securities upgraded Federal Signal from a "market perform" rating to a "market outperform" rating and set a $140.00 price target on the stock in a research note on Thursday, February 26th. KeyCorp reiterated an "overweight" rating and issued a $140.00 price target on shares of Federal Signal in a research note on Thursday, April 30th. Finally, Wall Street Zen upgraded Federal Signal from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Federal Signal presently has a consensus rating of "Buy" and an average price target of $139.25.

Federal Signal Stock Down 1.7%

Shares of Federal Signal stock opened at $118.38 on Friday. The company has a quick ratio of 1.29, a current ratio of 2.84 and a debt-to-equity ratio of 0.38. The firm has a market cap of $7.22 billion, a P/E ratio of 26.90, a P/E/G ratio of 1.71 and a beta of 1.32. Federal Signal Corporation has a fifty-two week low of $88.94 and a fifty-two week high of $132.89. The business has a 50-day moving average price of $112.74 and a 200 day moving average price of $113.57.

Federal Signal (NYSE:FSS - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The conglomerate reported $1.18 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.29. The firm had revenue of $625.60 million during the quarter, compared to analyst estimates of $579.87 million. Federal Signal had a return on equity of 21.18% and a net margin of 11.56%.Federal Signal's quarterly revenue was up 35.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.76 earnings per share. Federal Signal has set its FY 2026 guidance at 4.800-5.050 EPS. On average, sell-side analysts forecast that Federal Signal Corporation will post 4.94 earnings per share for the current fiscal year.

Federal Signal Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 15th will be 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 of this dividend is Friday, May 15th. Federal Signal's dividend payout ratio (DPR) is presently 13.64%.

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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