Zacks Research Downgrades Federal Signal (NYSE:FSS) to Hold

Posted by Francis Steltz on Aug 14th, 2026

Federal Signal (NYSE:FSS – Get Free Report) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Wednesday,Zacks.com reports.

FSS has been the topic of a number of other research reports. KeyCorp restated an “overweight” rating and set a $140.00 target price on shares of Federal Signal in a research report on Thursday, April 30th. DA Davidson lifted their price target on shares of Federal Signal from $125.00 to $132.00 and gave the company a “neutral” rating in a research report on Friday, May 1st. Wall Street Zen cut Federal Signal from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Finally, Weiss Ratings raised Federal Signal from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday, June 23rd. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Federal Signal presently has an average rating of “Moderate Buy” and a consensus target price of $137.33.

View Our Latest Analysis on Federal Signal

Federal Signal Trading Down 2.4%

Shares of Federal Signal stock opened at $123.29 on Wednesday. The firm has a 50-day moving average of $120.33 and a 200-day moving average of $115.71. The stock has a market cap of $7.53 billion, a PE ratio of 26.57, a PEG ratio of 1.72 and a beta of 1.24. Federal Signal has a 52-week low of $101.18 and a 52-week high of $134.51. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.21 and a current ratio of 2.74.

Federal Signal (NYSE:FSS – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The conglomerate reported $1.42 EPS for the quarter, topping 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 business had revenue of $670.20 million for the quarter, compared to analyst estimates of $667.04 million. During the same period last year, the firm earned $1.17 earnings per share. Federal Signal’s revenue for the quarter 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. As a group, sell-side analysts forecast that Federal Signal will post 5.23 EPS for the current year.

Insider Activity at Federal Signal

In other news, VP Diane Bonina sold 14,856 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $130.44, for a total transaction of $1,937,816.64. Following the completion of the sale, the vice president owned 15,689 shares of the company’s stock, valued at approximately $2,046,473.16. This represents a 48.64% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 3.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Federal Signal during the second quarter worth $1,236,004,000. Vanguard Group Inc. increased its stake in shares of Federal Signal by 2.1% in the 4th quarter. Vanguard Group Inc. now owns 6,840,396 shares of the conglomerate’s stock valued at $742,799,000 after purchasing an additional 138,855 shares during the last quarter. Capital World Investors increased its stake in shares of Federal Signal by 4.4% in the 4th quarter. Capital World Investors now owns 2,362,294 shares of the conglomerate’s stock valued at $256,522,000 after purchasing an additional 100,000 shares during the last quarter. State Street Corp raised its holdings in shares of Federal Signal by 0.4% during the 2nd quarter. State Street Corp now owns 2,266,523 shares of the conglomerate’s stock worth $241,203,000 after buying an additional 7,982 shares in the last quarter. Finally, Invesco Ltd. raised its holdings in shares of Federal Signal by 10.2% during the 4th quarter. Invesco Ltd. now owns 2,168,788 shares of the conglomerate’s stock worth $235,509,000 after buying an additional 201,440 shares in the last quarter. 92.73% of the stock is currently owned by institutional investors and hedge funds.

About Federal Signal

(Get Free Report)

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.