Federal Signal (NYSE:FSS) Trading 7.8% Higher Following Earnings Beat

Federal Signal Corporation (NYSE:FSS) shares rose 7.8% during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $132.75 and last traded at $126.11. Approximately 133,553 shares changed hands during mid-day trading, a decline of 63% from the average daily volume of 363,373 shares. The stock had previously closed at $116.99.

The conglomerate reported $1.16 EPS for the quarter, beating analysts’ consensus estimates of $1.08 by $0.08. Federal Signal had a net margin of 11.47% and a return on equity of 19.50%. The firm’s revenue for the quarter was up 26.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.87 EPS. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Federal Signal in a research note on Monday, December 29th. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Federal Signal currently has a consensus rating of “Hold” and an average price target of $123.00.

Institutional Investors Weigh In On Federal Signal

Institutional investors and hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC lifted its holdings 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 valued at $26,000 after purchasing an additional 142 shares during the last quarter. Palladiem LLC purchased a new position in Federal Signal in the 4th quarter worth about $27,000. Covestor Ltd lifted its stake in Federal Signal by 118.0% during the fourth quarter. Covestor Ltd now owns 279 shares of the conglomerate’s stock valued at $30,000 after buying an additional 151 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in 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 valued at $30,000 after buying an additional 248 shares in the last quarter. Finally, MAI Capital Management boosted its holdings in shares of Federal Signal by 1,003.8% in the second quarter. MAI Capital Management now owns 287 shares of the conglomerate’s stock worth $31,000 after buying an additional 261 shares during the period. 92.73% of the stock is owned by institutional investors and hedge funds.

Federal Signal Stock Performance

The firm’s 50-day moving average price is $114.19 and its two-hundred day moving average price is $117.33. The company has a quick ratio of 1.25, a current ratio of 2.61 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $7.61 billion, a PE ratio of 32.66, a P/E/G ratio of 1.80 and a beta of 1.35.

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.