Federal Signal Corporation (NYSE:FSS) Receives Average Recommendation of “Buy” from Analysts

Federal Signal Corporation (NYSE:FSS) has earned an average rating of “Buy” from the five research firms that are currently covering the company, Marketbeat.com reports. One analyst has rated the stock with a hold recommendation, three have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $137.3333.

Several equities research analysts have weighed in on FSS shares. KeyCorp reaffirmed an “overweight” rating and issued a $140.00 price target on shares of Federal Signal in a research note on Thursday, April 30th. Wall Street Zen cut shares of Federal Signal from a “buy” rating to a “hold” rating in a research report on Saturday. Weiss Ratings upgraded Federal Signal from a “buy (b-)” rating to a “buy (b)” rating in a research note on Tuesday, June 23rd. DA Davidson upped 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. Finally, Zacks Research raised Federal Signal from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 4th.

Federal Signal Stock Performance

Shares of FSS stock opened at $124.91 on Tuesday. The company has a market cap of $7.62 billion, a price-to-earnings ratio of 26.92, a price-to-earnings-growth ratio of 1.81 and a beta of 1.23. Federal Signal has a 52 week low of $101.18 and a 52 week high of $134.51. The company has a quick ratio of 1.29, a current ratio of 2.74 and a debt-to-equity ratio of 0.30. The firm has a 50 day moving average of $117.17 and a 200-day moving average of $114.89.

Federal Signal (NYSE:FSS) last released its earnings results on Thursday, July 30th. The conglomerate reported $1.42 earnings per share (EPS) for the quarter, beating 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 company had revenue of $670.20 million for the quarter, compared to the consensus estimate of $667.04 million. During the same quarter in the previous year, the company earned $1.17 EPS. Federal Signal’s quarterly 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. On average, equities analysts forecast that Federal Signal will post 5.23 earnings per share for the current year.

Federal Signal Announces Dividend

The company also recently announced 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 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Friday, August 14th. Federal Signal’s dividend payout ratio is presently 12.93%.

Federal Signal News Summary

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

Institutional Trading of Federal Signal

Hedge funds have recently bought and sold shares of the business. Physician Wealth Advisors Inc. raised its holdings in Federal Signal by 57.2% during the first quarter. Physician Wealth Advisors Inc. now owns 250 shares of the conglomerate’s stock worth $27,000 after buying an additional 91 shares during the last quarter. New Age Alpha Advisors LLC increased its position in shares of Federal Signal by 3.4% during the fourth quarter. New Age Alpha Advisors LLC now owns 2,895 shares of the conglomerate’s stock worth $314,000 after acquiring an additional 95 shares in the last quarter. Canada Pension Plan Investment Board increased its position in shares of Federal Signal by 10.0% during the second quarter. Canada Pension Plan Investment Board now owns 1,100 shares of the conglomerate’s stock worth $117,000 after acquiring an additional 100 shares in the last quarter. Smartleaf Asset Management LLC raised its holdings in shares of Federal Signal by 9.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,245 shares of the conglomerate’s stock worth $130,000 after acquiring an additional 108 shares during the last quarter. Finally, UMB Bank n.a. raised its holdings in shares of Federal Signal by 50.5% in the 4th quarter. UMB Bank n.a. now owns 331 shares of the conglomerate’s stock worth $36,000 after acquiring an additional 111 shares during the last quarter. Institutional investors and hedge funds 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.