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

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

Several other research analysts also recently weighed in on FSS. Weiss Ratings restated a “buy (b-)” rating on shares of Federal Signal in a research note on Monday, December 29th. CJS Securities upgraded shares of Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 price objective on the stock in a report on Thursday. Three analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Federal Signal currently has an average rating of “Moderate Buy” and a consensus target price of $126.75.

Federal Signal Price Performance

FSS stock opened at $116.51 on Friday. The firm has a market cap of $7.09 billion, a P/E ratio of 29.06, a price-to-earnings-growth ratio of 1.81 and a beta of 1.35. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.25 and a current ratio of 3.02. Federal Signal has a 1 year low of $66.47 and a 1 year high of $132.89. The stock has a 50-day simple moving average of $114.60 and a 200-day simple moving average of $117.28.

Federal Signal (NYSE:FSS) last released its quarterly earnings results on Wednesday, February 25th. The conglomerate reported $1.16 earnings per share for the quarter, topping analysts’ consensus estimates of $1.08 by $0.08. Federal Signal had a return on equity of 20.14% and a net margin of 11.31%.The firm had revenue of $597.10 million during the quarter, compared to analysts’ expectations of $551.36 million. During the same quarter in the prior year, the business earned $0.87 EPS. Federal Signal’s quarterly revenue was up 26.5% compared to the same quarter last year. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. On average, equities analysts predict that Federal Signal will post 3.34 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC grew its holdings in Federal Signal by 140.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 243 shares of the conglomerate’s stock worth $26,000 after acquiring an additional 142 shares in the last quarter. Palladiem LLC acquired a new stake in shares of Federal Signal in the 4th quarter valued at about $27,000. Covestor Ltd lifted its position in shares of Federal Signal by 118.0% during the fourth quarter. Covestor Ltd now owns 279 shares of the conglomerate’s stock worth $30,000 after purchasing an additional 151 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its stake in Federal Signal by 3,100.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate’s stock worth $30,000 after purchasing an additional 248 shares in the last quarter. Finally, MAI Capital Management increased its holdings in Federal Signal by 1,003.8% in the second quarter. MAI Capital Management now owns 287 shares of the conglomerate’s stock valued at $31,000 after buying an additional 261 shares during the last quarter. 92.73% of the stock is currently owned by institutional investors.

Key Stories Impacting Federal Signal

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

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.