Federal Signal (NYSE:FSS) Stock Price Breaks Above Two Hundred Day Moving Average – Should You Sell?

Federal Signal Corporation (NYSE:FSS – Get Free Report)’s share price passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $115.75 and traded as high as $116.43. Federal Signal shares last traded at $115.9460, with a volume of 480,104 shares changing hands.

Trending Headlines about Federal Signal

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

  • Positive Sentiment: Quarterly earnings beat expectations. Federal Signal reported third-quarter adjusted earnings of $1.34 per share, exceeding the $1.32 consensus estimate and rising from $1.14 a year earlier. Revenue increased 18.1% year over year to $655.5 million. Federal Signal Surpasses Q3 Earnings Estimates
  • Positive Sentiment: Demand and profitability were strong. Management reported record third-quarter results, including a 19% improvement in operating income, strong cash generation and a 33% increase in orders. The order growth supports the company’s future revenue visibility. Federal Signal Reports Record Third Quarter Results
  • Positive Sentiment: Full-year adjusted EPS guidance was increased. The improved earnings outlook suggests management expects continued operating momentum despite some revenue uncertainty. Federal Signal also expanded its vacuum-truck portfolio by acquiring Global Vacuum Systems for approximately $29 million, potentially adding products and growth opportunities. Federal Signal Boosts FY26 Adjusted EPS Outlook
  • Neutral Sentiment: The quarterly dividend was maintained. Federal Signal declared a $0.15-per-share dividend payable December 1, equivalent to a $0.60 annual payout and roughly a 0.5% yield. The announcement reinforces capital-return consistency but is unlikely to materially change the investment case. Federal Signal Declares Quarterly Dividend
  • Negative Sentiment: Revenue missed analyst forecasts. Quarterly sales of $655.5 million fell short of the $661.6 million consensus estimate, and full-year sales guidance was narrowed. This could temper the effect of the earnings beat and raise questions about near-term revenue growth.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on FSS shares. Wall Street Zen cut shares of Federal Signal from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Weiss Ratings raised Federal Signal from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Zacks Research downgraded Federal Signal from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 12th. Finally, Citigroup assumed coverage on Federal Signal in a research note on Monday, August 17th. They set a “buy” rating and a $150.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $140.50.

Read Our Latest Analysis on FSS

Federal Signal Trading Up 1.7%

The firm has a market cap of $7.04 billion, a price-to-earnings ratio of 24.85, a price-to-earnings-growth ratio of 1.54 and a beta of 1.23. The business has a 50 day moving average of $115.51 and a 200 day moving average of $115.73. The company has a quick ratio of 1.21, a current ratio of 2.74 and a debt-to-equity ratio of 0.30.

Federal Signal (NYSE:FSS – Get Free Report) last released its earnings results on Thursday, October 29th. The conglomerate reported $1.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.32 by $0.02. Federal Signal had a net margin of 11.66% and a return on equity of 21.36%. The company had revenue of $655.50 million for the quarter, compared to analyst estimates of $661.61 million. During the same period in the prior year, the firm earned $1.14 EPS. The firm’s quarterly revenue was up 18.1% on a year-over-year basis. On average, research analysts forecast that Federal Signal Corporation will post 5.24 earnings per share for the current fiscal year.

Federal Signal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Friday, November 13th will be given a dividend of $0.15 per share. The ex-dividend date is Friday, November 13th. This represents a $0.60 annualized dividend and a yield of 0.5%. Federal Signal’s dividend payout ratio is 12.93%.

Insider Buying and Selling

In other news, VP Diane Bonina sold 14,856 shares of the company’s stock in a transaction dated 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 transaction, the vice president owned 15,689 shares of the company’s stock, valued at $2,046,473.16. This represents a 48.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 3.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Federal Signal

Institutional investors and hedge funds have recently bought and sold shares of the stock. Root Financial Partners LLC acquired a new position in Federal Signal in the third quarter valued at $25,000. Physician Wealth Advisors Inc. increased its stake 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 acquiring an additional 91 shares during the last quarter. Allworth Financial LP purchased a new position in shares of Federal Signal in the 2nd quarter worth about $33,000. Ancora Advisors LLC acquired a new position in shares of Federal Signal in the 2nd quarter valued at about $34,000. Finally, Compass Financial Management LLC purchased a new stake in shares of Federal Signal during the 2nd quarter worth about $51,000. Institutional investors and hedge funds own 92.73% of the company’s stock.

Federal Signal Company Profile

(Get Free Report)

Federal Signal Corporation (NYSE:FSS) designs and manufactures equipment and systems used by municipalities, government agencies, industrial organizations and commercial customers. Its products support public safety, infrastructure maintenance, environmental protection and emergency response activities.

The company operates through two principal business areas: Environmental Solutions and Safety and Security Systems. Environmental Solutions products include street sweepers, sewer cleaners, vacuum trucks, hydro-excavation equipment, dump bodies and snow and ice control equipment.

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