Federal Signal (NYSE:FSS) Downgraded by Wall Street Zen to Hold

Wall Street Zen cut shares of Federal Signal (NYSE:FSS) from a buy rating to a hold rating in a research note published on Saturday.

FSS has been the topic of several other reports. DA Davidson raised their price objective on Federal Signal from $125.00 to $132.00 and gave the stock a “neutral” rating in a report on Friday, May 1st. Zacks Research upgraded Federal Signal from a “hold” rating to a “strong-buy” rating in a report on Monday, May 4th. KeyCorp reissued an “overweight” rating and set a $140.00 price target on shares of Federal Signal in a research report on Thursday, April 30th. Finally, Weiss Ratings upgraded Federal Signal from a “buy (b-)” rating to a “buy (b)” rating in a research note on Tuesday, June 23rd. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, Federal Signal currently has an average rating of “Buy” and an average price target of $137.33.

Federal Signal Stock Performance

Shares of NYSE:FSS opened at $124.91 on Friday. The firm has a market cap of $7.62 billion, a PE ratio of 26.92, a price-to-earnings-growth ratio of 1.81 and a beta of 1.23. The firm’s 50 day simple moving average is $117.17 and its 200-day simple moving average is $114.89. Federal Signal has a one year low of $101.18 and a one year high of $134.51. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.29 and a current ratio of 2.74.

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, beating the consensus estimate of $1.29 by $0.13. The firm had revenue of $670.20 million during the quarter, compared to the consensus estimate of $667.04 million. Federal Signal had a net margin of 11.66% and a return on equity of 21.36%. The company’s revenue was up 18.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.17 earnings per share. Federal Signal has set its FY 2026 guidance at 5.120-5.300 EPS. As a group, equities analysts predict that Federal Signal will post 5.23 EPS for the current year.

Federal Signal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Friday, August 14th will be paid a dividend of $0.15 per share. The ex-dividend date is Friday, August 14th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.5%. Federal Signal’s dividend payout ratio (DPR) is currently 12.93%.

Hedge Funds Weigh In On Federal Signal

A number of large investors have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC increased its holdings in shares of Federal Signal by 47.2% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 88,210 shares of the conglomerate’s stock valued at $9,579,000 after acquiring an additional 28,299 shares during the period. Geode Capital Management LLC lifted its stake in shares of Federal Signal by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 1,725,757 shares of the conglomerate’s stock worth $187,427,000 after purchasing an additional 18,587 shares during the last quarter. First Trust Advisors LP lifted its stake in shares of 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 purchasing an additional 124,270 shares during the last quarter. B. Metzler seel. Sohn & Co. AG lifted its stake in shares of Federal Signal by 60.5% during the 4th quarter. B. Metzler seel. Sohn & Co. AG now owns 30,772 shares of the conglomerate’s stock worth $3,342,000 after purchasing an additional 11,605 shares during the last quarter. Finally, Montanaro Asset Management Ltd boosted its position in Federal Signal by 65.9% during the fourth quarter. Montanaro Asset Management Ltd now owns 68,500 shares of the conglomerate’s stock valued at $7,438,000 after purchasing an additional 27,200 shares in the last quarter. Institutional investors own 92.73% of the company’s stock.

Trending Headlines about Federal Signal

Here are the key news stories impacting Federal Signal this week:

• Positive Sentiment: Quarterly earnings surpassed estimates. Federal Signal reported second-quarter adjusted EPS of $1.42, up from $1.17 a year earlier and above analyst estimates of approximately $1.28-$1.29. Revenue increased 18.7% year over year to $670.2 million, slightly exceeding the $667.0 million consensus. Federal Signal Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Record operating performance and stronger demand supported the outlook. The company reported 19% net-sales growth, a 21% improvement in operating income, strong cash generation and an 18% increase in orders, indicating healthy customer demand and operational execution. Federal Signal Reports Record Second Quarter Results
• Positive Sentiment: Full-year EPS guidance was raised above expectations. Federal Signal now expects fiscal 2026 EPS of $5.12-$5.30, compared with the analyst consensus of $4.97. Revenue guidance of $2.6-$2.7 billion was broadly in line with consensus, but the higher profit outlook is a key bullish signal for investors. Federal Signal Posts Q2 Sales in Line With Estimates
• Neutral Sentiment: The earnings call and related presentations provided additional commentary on the quarterly performance, order trends and updated outlook, but the available reports did not identify a material negative development. Federal Signal Q2 2026 Earnings Call Transcript

Federal Signal Company Profile

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.