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

Federal Signal (NYSE:FSS) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

A number of other brokerages have also weighed in on FSS. Weiss Ratings reissued a “buy (b-)” rating on shares of Federal Signal in a research note on Monday, December 29th. CJS Securities upgraded Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 target price for the company in a research note on Thursday. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $126.75.

Federal Signal Price Performance

NYSE:FSS opened at $116.51 on Friday. Federal Signal has a 12-month low of $66.47 and a 12-month high of $132.89. The firm has a market cap of $7.09 billion, a price-to-earnings ratio of 29.06, a price-to-earnings-growth ratio of 1.81 and a beta of 1.35. The company’s 50-day moving average is $114.60 and its two-hundred day moving average is $117.28. The company has a current ratio of 3.02, a quick ratio of 1.25 and a debt-to-equity ratio of 0.41.

Federal Signal (NYSE:FSS) last posted its quarterly earnings data on Wednesday, February 25th. The conglomerate reported $1.16 earnings per share for the quarter, beating analysts’ consensus estimates of $1.08 by $0.08. The business had revenue of $597.10 million during the quarter, compared to analyst estimates of $551.36 million. Federal Signal had a net margin of 11.31% and a return on equity of 20.14%. The company’s revenue was up 26.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.87 earnings per share. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. Research analysts expect that Federal Signal will post 3.34 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. CW Advisors LLC purchased a new position in Federal Signal in the second quarter valued at approximately $6,426,000. Y Intercept Hong Kong Ltd purchased a new stake in Federal Signal during the third quarter worth approximately $3,745,000. Campbell & CO Investment Adviser LLC acquired a new stake in shares of Federal Signal in the second quarter worth $942,000. Entropy Technologies LP acquired a new stake in shares of Federal Signal in the second quarter worth $1,385,000. Finally, Global Alpha Capital Management Ltd. lifted its holdings in shares of Federal Signal by 17.3% during the 2nd quarter. Global Alpha Capital Management Ltd. now owns 562,813 shares of the conglomerate’s stock valued at $59,895,000 after acquiring an additional 83,100 shares in the last quarter. 92.73% of the stock is owned by hedge funds and other institutional investors.

Federal Signal News Roundup

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

• Positive Sentiment: Q4 results and guidance beat — Federal Signal reported Q4 EPS above estimates and revenue beat, with management setting FY2026 guidance that supported the rally; the earnings surprise was the main catalyst for the recent jump in the share price. Earnings Transcript
• Positive Sentiment: Dividend increase — the board raised the quarterly cash dividend by ~7% to $0.15 per share, a shareholder-friendly move that supports income-focused demand. Dividend Press Release
• Positive Sentiment: Analyst upgrades and model lifts — CJS Securities upgraded FSS to “market outperform” with a $140 target, and Sidoti raised FY2026 and FY2027 EPS estimates (and several quarterly estimates), reinforcing the bullish fundamental view. Analyst Upgrade (Benzinga)
• Positive Sentiment: Technical momentum/ratings improvement — FSS received a Relative Strength (RS) rating lift to 74, which likely supported short-term buying from momentum/rotation flows. RS Rating Lift
• Neutral Sentiment: Board changes — the company announced two new director appointments, a governance update that is unlikely to move fundamentals immediately but can matter to long-term investors. Director Appointments
• Negative Sentiment: Small Q1 cut in Sidoti note — while Sidoti raised FY2026 and other quarterly forecasts, it trimmed its Q1 2026 EPS view (from $0.97 to $0.93), a modest near-term revision that could temper expectations for the coming quarter. Sidoti Estimates
• Negative Sentiment: Post-rally consolidation and lighter volume — after strong post-earnings gains, the stock is pulling back on below-average volume and is trading slightly under its 200‑day moving average, suggesting short-term profit-taking and consolidation risk. Trading Summary

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.