Federal Signal (NYSE:FSS) Lowered to “Hold” Rating by Zacks Research

Zacks Research lowered shares of Federal Signal (NYSE:FSS) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday morning,Zacks.com reports.

A number of other research analysts have also weighed in on the stock. Wall Street Zen lowered shares of Federal Signal from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. KeyCorp restated an “overweight” rating and issued a $140.00 price target on shares of Federal Signal in a research report on Thursday, April 30th. DA Davidson increased their price target on Federal Signal from $125.00 to $132.00 and gave the company a “neutral” rating in a report on Friday, May 1st. Finally, Weiss Ratings upgraded Federal Signal from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday, June 23rd. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $137.33.

Federal Signal Price Performance

Shares of NYSE FSS opened at $123.29 on Wednesday. The firm has a 50-day simple moving average of $120.33 and a 200-day simple moving average of $115.71. The company has a quick ratio of 1.21, a current ratio of 2.74 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $7.53 billion, a price-to-earnings ratio of 26.57, a price-to-earnings-growth ratio of 1.72 and a beta of 1.24. Federal Signal has a 52 week low of $101.18 and a 52 week high of $134.51.

Federal Signal (NYSE:FSS) last posted its quarterly earnings results on Thursday, July 30th. The conglomerate reported $1.42 earnings per share for the quarter, topping analysts’ consensus estimates of $1.29 by $0.13. Federal Signal had a net margin of 11.66% and a return on equity of 21.36%. The firm had revenue of $670.20 million for the quarter, compared to analyst estimates of $667.04 million. During the same period in the previous year, the business posted $1.17 earnings per share. Federal Signal’s quarterly revenue was up 18.7% on a year-over-year basis. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. On average, equities analysts predict that Federal Signal will post 5.23 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 Thursday, August 27th. Stockholders of record on Friday, August 14th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Friday, August 14th. Federal Signal’s payout ratio is presently 12.93%.

Insider Buying and Selling

In related 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 value of $1,937,816.64. Following the transaction, the vice president directly owned 15,689 shares in the company, valued at approximately $2,046,473.16. This represents a 48.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 3.30% of the company’s stock.

Institutional Investors Weigh In On Federal Signal

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC lifted its stake in shares of 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 during the last quarter. Palladiem LLC purchased a new position in shares of Federal Signal during the 4th quarter worth $27,000. Physician Wealth Advisors Inc. increased its position in shares of Federal Signal by 57.2% during the 1st quarter. Physician Wealth Advisors Inc. now owns 250 shares of the conglomerate’s stock worth $27,000 after purchasing an additional 91 shares during the last quarter. Allworth Financial LP acquired a new stake in shares of Federal Signal during the 2nd quarter worth about $33,000. Finally, Caitong International Asset Management Co. Ltd raised its holdings in Federal Signal by 3,100.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate’s stock valued at $30,000 after buying an additional 248 shares during the period. Hedge funds and other institutional investors own 92.73% of the company’s stock.

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.