Federal Signal (NYSE:FSS) Stock

Federal Signal

Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates in the segments of Environmental Solutions Group and the Safety and Security Systems Group. The Environmental Solutions group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance water blasting equipment, dump truck bodies, and trailers. The Safety and Security Systems Group offers comprehensive systems and products such as campus and community alerting, emergency vehicles, first responder interoperable communications, and others. The company generates a majority of its revenue from the Environmental Solutions Group segment.

Earnings

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General

3M Company MMM is scheduled to release third-quarter 2024 results on Oct. 22, before market open.


Should 3M Stock Be Part Of Your Portfolio Ahead Of Q3 Earnings?

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Analyst Ratings

Honeywell International Inc. (NASDAQ: HON) is experiencing strength in its commercial aviation aftermarket business driven by solid demand in the air transport and business aviation markets.

Honeywell Boasts Strong Prospects Despite Headwinds

Options

Investors in Federal Signal Corporation (NYSE: FSS) need to pay close attention to the stock based on moves in the options market lately. That is because the Aug 16, 2024 $75 Call had some of the highest implied volatility of all equity options today.

Do Options Traders Know Something About Federal Signal Stock We Don&#39;t?

Federal Signal Corp

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The Board of Directors of Federal Signal Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>) declared a quarterly cash dividend of fourteen cents ($0.14) per share on its common stock. This represents an increase of $0.02 per share, or 17%, compared to the dividend declared in the prior quarter. The dividend is payable on March 27, 2025 to stockholders of record at the close of business on March 14, 2025.

Federal Signal Corporation Increases Quarterly Dividend From $0.12 To $0.14 Per Share

Raymond James analyst Tim Thein reinstates Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>) with a Outperform and announces $110 price target.

Price Target

Initiation

Raymond James Reinstates Outperform on Federal Signal, Announces $110 Price Target

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Shares of machinery companies are trading higher. Investors may be reacting to the US presidential election and its impact on the industry.

DA Davidson analyst Michael Shlisky maintains Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>) with a Neutral and lowers the price target from $94 to $90.

DA Davidson Maintains Neutral on Federal Signal, Lowers Price Target to $90

Guidance

Federal Signal On Thursday Raised Full-Year Adj. EPS Outlook From $3.20-$3.35 To $3.30-$3.40, Narrowed Full-Year Net Sales Outlook  From $1.85B-$1.90B To $1.86B-$1.88B

Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>) reported quarterly earnings of $0.88 per share which beat the analyst consensus estimate of $0.84 by 4.76 percent. The company reported quarterly sales of $474.200 million which missed the analyst consensus estimate of $481.665 million by 100.00 percent. This is a 100.00 percent decrease over sales of $446.400 million the same period last year.

Earnings Beats

Earnings Misses

Federal Signal Q3 2024 Adj. EPS $0.88 Beats $0.84 Estimate, Sales $474.200M Miss $481.665M Estimate

Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>) is gearing up to announce its quarterly earnings on Thursday, 2024-10-31. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Federal Signal will report an earnings per share (EPS) of $0.84.
The market awaits Federal Signal's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
<h3>Historical Earnings Performance</h3>
In the previous earnings release, the company beat EPS by $0.11, leading to a 3.03% increase in the share price the following trading session.
Here's a look at Federal Signal's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.84</td>
<td>0.56</td>
<td>0.66</td>
<td>0.66</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.95</td>
<td>0.64</td>
<td>0.74</td>
<td>0.71</td>
</tr>
<tr>
<td>Price Change %</td>
<td>3.0%</td>
<td>-1.0%</td>
<td>-2.0%</td>
<td>2.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1730311481_0.png" alt="eps graph" />
<a href="https://www.benzinga.com/quote/FSS/earnings">To track all earnings releases for Federal Signal visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insights Ahead: Federal Signal's Quarterly Earnings

3M Company MMM is scheduled to release <a href="https://www.zacks.com/stock/research/MMM/earnings-calendar?icid=quote-stock_overview-quote_nav_tracking-zcom-left_subnav_quote_navbar-earnings_dates_announcements">third-quarter</a> 2024 results on Oct. 22, before market open. 
The Zacks Consensus Estimate for earnings is pegged at $1.93 per share, reflecting an increase of 0.5% in the past 60 days. The consensus mark implies a 28% decline from the year-ago reported actuals. The Zacks Consensus Estimate for revenues is pegged at $6.1 billion, indicating a 26.6% decrease year over year.
<h3>Estimate Movement</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/1b/81718.jpg?v=527876902" style="height:167px; width:624px" /> 
Image Source: Zacks Investment Research
It is worth noting that in April 2024, 3M completed the spin-off of its Health Care business into a separate public company. Notably, the spin-off is likely to have weighed on MMM&#39;s year-over-year top-line comparison in the quarter.
Despite the unfavorable impacts of the Health Care spin-off, the company&#39;s third-quarter performance is likely to have benefited from strength across its end markets, channel inventory normalization, solid operational execution and cost-saving initiatives. 
3M has an impressive earnings surprise history. The company&#39;s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.6%. In the last reported quarter, it delivered an earnings surprise of 16.3%.
<h2>3M&#39;s Earnings Surprise History</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/9b/81719.jpg?v=1627260871" style="height:145px; width:624px" /> 
Image Source: Zacks Investment Research
<h3>Earnings Whispers</h3>
Our proven model predicts an earnings beat for 3M this time around. The combination of a positive <a href="https://www.zacks.com/earnings/earnings-surprise-predictions/">Earnings ESP</a> and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. 
Earnings ESP: MMM has an Earnings ESP of +1.81% as the Most Accurate Estimate is pegged at $1.97 per share, which is higher than the Zacks Consensus Estimate of $1.93. You can uncover the best stocks before they&#39;re reported with our <a href="https://www.zacks.com/premium/esp-buy?adid=zp_article_espfilter&amp;icid=zpi_article_espfilter">Earnings ESP Filter</a>. 
Zacks Rank: 3M presently carries a Zacks Rank of 3. You can see <a href="https://www.zacks.com/stocks/buy-list/?ADID=zp_1link&amp;ICID=zpi%20_1link">the complete list of today&#39;s Zacks #1 Rank stocks here</a>.
<div class="chart_embed">
<h3>3M Company Price and EPS Surprise</h3>
<a href="https://www.zacks.com/stock/chart/MMM/price-eps-surprise?icid=chart-MMM-price-eps-surprise"><img alt="3M Company Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/16/1729257407.png" style="height:302px; width:624px" title="" /> </a>
<a href="https://www.zacks.com/stock/chart/MMM/price-eps-surprise?icid=chart-MMM-price-eps-surprise">3M Company price-eps-surprise</a> | <a href="https://www.zacks.com/stock/quote/MMM?icid=chart-MMM-price-eps-surprise">3M Company Quote</a>
</div>
<h3>Factors Shaping Quarterly Performance</h3>
Strength in electronics, automotive, aerospace, commercial branding and transportation end markets is expected to have augmented the Transportation and Electronics segment&#39;s revenues in the third quarter. Continued channel inventory normalization, supported by strong growth in electronics demand, is likely to have driven its performance. Also, solid demand for its products in the automotive electrification market, supported by an increase in auto OEM (original equipment manufacturer) build rates, might have been a tailwind for the segment. 
Improvement in demand across end markets is anticipated to have been a tailwind for 3M&#39;s industrial adhesives &amp; tapes, personal safety and automotive aftermarket businesses under the Safety and Industrial segment. However, weakness across the abrasives and industrial specialties markets is likely to have been a spoilsport. The Zacks Consensus Estimate for Safety and Industrial segment revenues is pegged at $2.79 billion, indicating a 1.4% increase from the year-ago number. 
The company is expected to have benefited from its restructuring actions, including headcount reduction, which are likely to have reduced costs and improved margins in the quarter. Its restructuring savings and spending discipline are also likely to have boosted its margins and profitability. 
Despite the positives, weakness in 3M&#39;s packaging and expression as well as home and auto care businesses is likely to have dragged its performance. Lower consumer retail discretionary spending on hardline goods is likely to hurt its Consumer segment&#39;s results. The consensus mark for the Consumer segment&#39;s revenues is pegged at $1.31 billion, indicating a 0.8% decline from the year-ago number. 
Given the company&#39;s extensive geographic presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar is also likely to have hurt 3M&#39;s overseas business.
<h3>Price Performance &amp; Valuation</h3>
MMM&#39;s shares have exhibited an uptrend in the past three months, outperforming its peers and the Zacks <a href="https://www.zacks.com/stocks/industry-rank/industry/diversified-operations-48">Diversified Operations</a> industry. The conglomerate giant&#39;s shares have surged 30.6%, outperforming the industry&#39;s and the S&amp;P 500&#39;s growth of 1.8% and 5.6%, respectively. The company&#39;s peers Honeywell International Inc. HON and Federal Signal Corporation FSS have gained 2.3% and 2.4%, respectively, in the same period.
<h2>MMM Outperforms Industry, S&amp;P 500 &amp; Peers</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/68/81720.jpg?v=857223673" style="height:294px; width:624px" /> 
Image Source: Zacks Investment Research
In terms of valuation, MMM&#39;s forward 12-month price-to-earnings (P/E) is 17.55X, a premium to its industry average of 16.17X. This indicates that investors will be paying a higher price than the company&#39;s expected earnings growth compared with its peers. Also, the stock is overvalued compared with its peer, Griffon Corporation GFF, which is trading at 11.88X.
<h2>Price-to-Earnings (Forward 12 Months)</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/03/81722.jpg?v=1727293138" style="height:230px; width:624px" /> 
Image Source: Zacks Investment Research
<h3>Investment Thesis</h3>
3M&#39;s robust and diversified portfolio encompassing industrial abrasives, automotive components, electrical products and packaging materials, along with strength in its segments, is likely to drive its growth. The company&#39;s ongoing restructuring actions are expected to improve margins and cash flow in the long run. It expects these actions to be completed by 2025 and yield annual pre-tax savings. Also, its commitment to rewarding its shareholders handsomely through dividend payments and share buybacks adds to its strength. 
However, weakness in the packaging and expression as well as home and auto care businesses remains concerning for its near-term performance. The company has been subject to several litigations, including earplug lawsuits. It has committed substantial funds to resolve these disputes as ongoing litigation might lead to additional expenses.
Also, a high debt level, if not controlled, is likely to be a drag on 3M&#39;s profitability. Exiting the second-quarter 2024, the company&#39;s long-term debt was high at $11.8 billion. This is evident from its long-term debt-to-capital ratio compared with its industry.
<h2>MMM&#39;s Long-Term Debt-to-Capital</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/fb/81723.jpg?v=1244707954" style="height:259px; width:624px" /> 
Image Source: Zacks Investment Research
<h3>Should You Buy 3M Stock Now?</h3>
Investors interested in 3M stock should wait for a better entry point, considering its premium valuation and the challenges it is facing in the retail market. Also, a <a href="https://www.zacks.com/style-scores-education/">VGM Score</a> of D does not reflect major strength in the stock. 
One should monitor the stock&#39;s developments closely before buying it, as an erroneous and hasty decision could affect portfolio gains. Therefore, it might be prudent to wait for MMM&#39;s earnings report before making an investment decision. 
However, those who already own this stock may stay invested as the company&#39;s upbeat estimates, strong share price returns and strength across most end markets offer solid long-term prospects.
<a href="https://www.zacks.com/stock/news/2353219/should-3m-stock-be-part-of-your-portfolio-ahead-of-q3-earnings?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2353219">To read this article on Zacks.com click here.</a>
<a href="https://www.zacks.com/">Zacks Investment Research</a>

Honeywell International Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hon#NASDAQ">HON</a>) is experiencing strength in its commercial aviation aftermarket business driven by solid demand in the air transport and business aviation markets. Also, strength in the company&#39;s commercial aviation original equipment business, backed by an improvement in build rates and an increase in air transport hours, has been favorable.
In the quarters ahead, it expects the Aerospace segment to benefit from strong demand in commercial aviation, growth in air transport flight hours and higher chipset deliveries. Strength in its defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, is also likely to be beneficial.
Solid demand for its products and solutions, led by increasing building projects, will likely be beneficial for the Building Automation segment. Strength in the advanced materials business, driven by higher demand for fluorine products, bodes well for the Energy and Sustainability Solutions segment.
The company has been strengthening its business through acquisitions. Acquisitions had a positive impact of 1% on sales growth in the second quarter. In July 2024, it inked a deal to acquire Air Products&#39; liquefied natural gas process technology and equipment business for $1.81 billion in cash. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close before the end of 2024.
In June 2024, Honeywell inked a deal to acquire CAES Systems Holdings LLC from private equity firm Advent. The transaction will augment its defense technology offerings across various domains, including land, sea, air and space. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close by the second half of 2024. In the same month, Honeywell acquired Carrier&#39;s Global Access Solutions business for an all-cash deal of $4.95 billion. The inclusion of Global Access Solutions&#39; expertise in advanced access and security solutions, coupled with its impressive growth and margin profile, will enable Honeywell to expand its security products portfolio and boost its building automation segment.
The company inked a deal to purchase Civitanavi Systems S.p.A. for about &euro;200 million ($217 million) to boost its portfolio of aerospace navigation solutions in March 2024. With the buyout, Honeywell expects to strengthen its foothold in the European Union. Management expects the transaction to be completed in third-quarter 2024, subject to the fulfillment of certain customary closing conditions.
In August 2023, the company acquired SCADAfence, a provider of operational technology (OT) and Internet of Things cybersecurity solutions. The acquisition will expand Honeywell&#39;s OT cybersecurity portfolio in Tel Aviv, Israel, while simultaneously fortifying its existing capabilities in cybersecurity, thus offering customers enhanced security, reliability and efficiency. SCADAfence has been integrated into the Honeywell Forge Cybersecurity+ suite within Honeywell Connected Enterprise.
Honeywell remains committed to rewarding its shareholders handsomely through dividend payments and share buybacks. In September 2023, HON hiked its quarterly dividend by approximately 5% to $1.08 per share (annually&nbsp;$4.32). This marks its 14th consecutive dividend hike since 2010. In the first six months of 2024, it paid out dividends of $1.4 billion and repurchased shares worth $1.2 billion. Strong free cash flow generation supports the company&#39;s shareholder-friendly activities. Honeywell expects free cash flow to be in the range of $5.5-$5.9 billion for 2024.
In the past year, this Zacks Rank #3 (Hold) company&#39;s shares gained 8.1% compared with the industry&#39;s 17.6% growth.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/c5/74934.jpg?v=101758204" />
Image Source: Zacks Investment Research
However, Honeywell has been witnessing weakness in the Industrial Automation segment. Weakness in the warehouse and workflow solutions businesses, due to lower demand for projects, has been affecting the segment&#39;s performance. Also, the weakened demand for personal protective equipment within the sensing and safety technologies business is worrisome. Continued softness in the warehouse automation business, owing to lower investments in the market, remains a concern for the segment.
Honeywell&#39;s long-term debt in the last five years (2019-2023) witnessed a CAGR of 8.3%. At the end of the second quarter, the company&#39;s long-term debt was $20.9 billion, higher than $16.6 billion at 2023-end. The increase in its debt level was primarily attributable to the funds raised for the Global Access Solutions acquisition. Considering its high debt level, its cash and cash equivalents of $9.6 billion do not look impressive.
Honeywell stock looks more leveraged than the industry. Its debt/capital ratio is currently 0.61, higher than 0.32 of the industry.&nbsp; Also, interest expenses and other financial charges in the second quarter remained high at $250 million. Exiting the second quarter, its long-term debt and current maturities totaled $23.4 billion. High debt levels can increase its financial obligations and prove detrimental to profitability in the quarters ahead.
<h3>Stocks to Consider</h3>
Some better-ranked companies are discussed below.
3M Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mmm#NYSE">MMM</a>) currently carries a Zacks Rank #2 (Buy).
MMM delivered a trailing four-quarter average earnings surprise of 12.6%. In the past 60 days, the Zacks Consensus Estimate for 3M&#39;s 2024 earnings has increased 1.6%.
Federal Signal Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fss#NYSE">FSS</a>) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 12.3%.
In the past 60 days, the consensus estimate for FSS&#39;s 2024 earnings has increased 5.2%.
Unisys Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uis#NYSE">UIS</a>) currently sports a Zacks Rank of 1. UIS delivered a trailing four-quarter average earnings surprise of 87.7%.
In the past 60 days, the Zacks Consensus Estimate for Unisys&#39; 2024 earnings has increased more than 100%.
<a href="https://www.zacks.com/stock/news/2325262/honeywell-hon-boasts-strong-prospects-despite-headwinds?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2325262">To read this article on Zacks.com click here.</a>

Federal Signal Reaffirms FY24 Sales Outlook Of $1.85B - $1.90B Vs. $1.87B Est.

Federal Signal Raises FY24 Adj EPS Outlook From $2.95 - $3.15 To $3.20 - $3.35 Vs. $3.03 Est.

Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>) reported quarterly earnings of $0.95 per share which beat the analyst consensus estimate of $0.84 by 13.1 percent. This is a 41.79 percent increase over earnings of $0.67 per share from the same period last year. The company reported quarterly sales of $490.40 million which beat the analyst consensus estimate of $486.19 million by 0.87 percent. This is a 10.85 percent increase over sales of $442.40 million the same period last year.

Federal Signal Q2 Adj $0.95 Beats $0.84 Estimate, Sales $490.40M Beat $486.19M Estimate

Federal Signal's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>) short percent of float has risen 11.45% since its last report. The company recently reported that it has 637 thousand shares sold short, which is 1.46% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.89 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Federal Signal Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721654112_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Federal Signal has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Federal Signal's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Federal Signal's peer group average for short interest as a percentage of float is 5.85%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

How Is The Market Feeling About Federal Signal?

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Citigroup Financial 300% Minupon Princ Protected Nts for Russell 2000 Index

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Shares of companies within the broader industrial sector are trading higher following Core Retail Sales and Retail Sales economic data. Also, strength may be due to trader optimism that the Fed will cut rates.

Investors in Federal Signal Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fss#NYSE">FSS</a>) need to pay close attention to the stock based on moves in the options market lately. That is because the Aug 16, 2024 $75 Call had some of the highest implied volatility of all equity options today.
<h3>What is Implied Volatility?</h3>
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
<h3>What do the Analysts Think?</h3>
Clearly, options traders are pricing in a big move for Federal Signal shares, but what is the fundamental picture for the company? Currently, Federal Signal is a Zacks Rank #3 (Hold) in the Diversified Operations industry that ranks in the Top 17% of our Zacks Industry Rank. Over the last 60 days, no analyst has increased the earnings estimates for the current quarter, while none has dropped the estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from 83 cents per share 84 cents in that period.
Given the way analysts feel about Federal Signal right now, this huge implied volatility could mean there&#39;s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
<a href="https://www.zacks.com/stock/news/2298608/do-options-traders-know-something-about-federal-signal-fss-stock-we-don-t?cid=CS-BENZ-FT-tale_of_the_tape|options-2298608">To read this article on Zacks.com click here.</a>

Do Options Traders Know Something About Federal Signal Stock We Don't?

William Blair analyst Ross Sparenblek initiates coverage on Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>) with a Outperform rating.

William Blair Initiates Coverage On Federal Signal with Outperform Rating

A noteworthy insider acquisition was disclosed on May 6, as Bonina, VP at Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>), reported the acquisition of stock options for 4,271 shares.
What Happened: A Form 4 filing from the <a href="https://www.sec.gov/Archives/edgar/data/0000277509/000192323324000035//Archives/edgar/data/277509/000192323324000035/0001923233-24-000035-index.htm">U.S. Securities and Exchange Commission</a> on Monday showed that Bonina, VP at Federal Signal, a company in the Industrials sector, acquired stock options for 4,271 shares of FSS. The options allow Bonina to buy the company's stock at $82.31 per share.
As of Tuesday morning, Federal Signal shares are down by 0.0%, with a current price of $84.2. This implies that Bonina's 4,271 shares have a value of $8,072.
<h3>Delving into Federal Signal's Background</h3>
Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates in the segments of Environmental Solutions Group and the Safety and Security Systems Group. The Environmental Solutions group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance water blasting equipment, dump truck bodies, and trailers. The Safety and Security Systems Group offers comprehensive systems and products such as campus and community alerting, emergency vehicles, first responder interoperable communications, and others. The company generates a majority of its revenue from the Environmental Solutions Group segment.
<h3>Key Indicators: Federal Signal's Financial Health</h3>
Revenue Growth: Federal Signal displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 10.22%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.
Evaluating Earnings Performance:
<ul>
<li>
Gross Margin: The company maintains a high gross margin of 27.3%, indicating strong cost management and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, Federal Signal exhibits below-average bottom-line performance with a current EPS of 0.85.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.28.
Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 28.54, Federal Signal's stock is perceived as being overvalued in the market.
</li>
<li>
Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.94 suggests overvaluation in the eyes of investors, considering sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Federal Signal's EV/EBITDA ratio, surpassing industry averages at 18.03, positions it with an above-average valuation in the market.
</li>
</ul>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Unmasking the Significance of Insider Transactions</h3>
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>The Insider's Guide to Important Transaction Codes</h3>
Navigating through the landscape of transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000277509">Check Out The Full List Of Federal Signal's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

In A Strategic Move, Diane Bonina Acquires Federal Signal Stock Options: Enhancing Value

In a new SEC filing on May 6, it was unveiled that Elting, VP at Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>), acquired stock options for 1,710 shares.
What Happened: In a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000277509/000192323324000039//Archives/edgar/data/277509/000192323324000039/0001923233-24-000039-index.htm">U.S. Securities and Exchange Commission</a> on Monday, Elting, VP at Federal Signal, acquired stock options for 1,710 shares of FSS. These options provide Elting with the right to purchase the company's stock at $82.31 per share.
As of Tuesday morning, Federal Signal shares are down by 0.0%, with a current price of $84.2. This implies that Elting's 1,710 shares have a value of $3,231.
<h3>Unveiling the Story Behind Federal Signal</h3>
Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates in the segments of Environmental Solutions Group and the Safety and Security Systems Group. The Environmental Solutions group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance water blasting equipment, dump truck bodies, and trailers. The Safety and Security Systems Group offers comprehensive systems and products such as campus and community alerting, emergency vehicles, first responder interoperable communications, and others. The company generates a majority of its revenue from the Environmental Solutions Group segment.
<h3>Financial Milestones: Federal Signal's Journey</h3>
Positive Revenue Trend: Examining Federal Signal's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.22% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Navigating Financial Profits:
<ul>
<li>
Gross Margin: With a high gross margin of 27.3%, the company demonstrates effective cost control and strong profitability relative to its peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, Federal Signal exhibits below-average bottom-line performance with a current EPS of 0.85.
</li>
</ul>
Debt Management: Federal Signal's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.28.
In-Depth Valuation Examination:
<ul>
<li>
Price to Earnings (P/E) Ratio: Federal Signal's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 28.54.
</li>
<li>
Price to Sales (P/S) Ratio: The current P/S ratio of 2.94 is above industry norms, reflecting an elevated valuation for Federal Signal's stock and potential overvaluation based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio of 18.03, the company's market valuation exceeds industry averages.
</li>
</ul>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Why Insider Transactions Are Important</h3>
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
<h3>Transaction Codes To Focus On</h3>
When analyzing transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000277509">Check Out The Full List Of Federal Signal's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Strategic Play: Lauren B Elting Acquires Federal Signal Stock Options to Portfolio

Jennifer L Sherman, President &amp; CEO at Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>), reported acquisition of company stock options on May 6, according to a new SEC filing.
What Happened: Sherman, President &amp; CEO at Federal Signal, acquired stock options for 35,896 shares of FSS. This information was disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000277509/000192323324000044//Archives/edgar/data/277509/000192323324000044/0001923233-24-000044-index.htm">U.S. Securities and Exchange Commission</a> on Monday. The options allow Sherman to buy the company's stock at $82.31 per share.
As of Tuesday morning, Federal Signal shares are down by 0.0%, with a current price of $84.2. This implies that Sherman's 35,896 shares have a value of $67,843.
<h3>Delving into Federal Signal's Background</h3>
Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates in the segments of Environmental Solutions Group and the Safety and Security Systems Group. The Environmental Solutions group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance water blasting equipment, dump truck bodies, and trailers. The Safety and Security Systems Group offers comprehensive systems and products such as campus and community alerting, emergency vehicles, first responder interoperable communications, and others. The company generates a majority of its revenue from the Environmental Solutions Group segment.
<h3>Federal Signal: A Financial Overview</h3>
Revenue Growth: Federal Signal's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 10.22%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.
Key Profitability Indicators:
<ul>
<li>
Gross Margin: The company maintains a high gross margin of 27.3%, indicating strong cost management and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Federal Signal's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.85.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.28.
Valuation Overview:
<ul>
<li>
Price to Earnings (P/E) Ratio: Federal Signal's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 28.54.
</li>
<li>
Price to Sales (P/S) Ratio: The current P/S ratio of 2.94 is above industry norms, reflecting an elevated valuation for Federal Signal's stock and potential overvaluation based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Federal Signal's EV/EBITDA ratio of 18.03 exceeds industry averages, indicating a premium valuation in the market
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>The Impact of Insider Transactions on Investments</h3>
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Cracking Transaction Codes</h3>
Delving into transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000277509">Check Out The Full List Of Federal Signal's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Smart Money At Play: Jennifer L Sherman Acquires Federal Signal Stock Options Worth $67K

A substantial acquisition of company stock options by Mark Weber, SVP &amp; COO at Federal Signal (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSS#NYSE">FSS</a>) was reported on May 6, based on a new SEC filing.
What Happened: In a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000277509/000192323324000045//Archives/edgar/data/277509/000192323324000045/0001923233-24-000045-index.htm">U.S. Securities and Exchange Commission</a> on Monday, Weber, SVP &amp; COO at Federal Signal, acquired stock options for 10,254 shares of FSS. These options provide Weber with the right to purchase the company's stock at $82.31 per share.
The Tuesday morning market activity shows Federal Signal shares down by 0.0%, trading at $84.2. This implies a total value of $19,380 for Weber's 10,254 shares.
<h3>Get to Know Federal Signal Better</h3>
Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates in the segments of Environmental Solutions Group and the Safety and Security Systems Group. The Environmental Solutions group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance water blasting equipment, dump truck bodies, and trailers. The Safety and Security Systems Group offers comprehensive systems and products such as campus and community alerting, emergency vehicles, first responder interoperable communications, and others. The company generates a majority of its revenue from the Environmental Solutions Group segment.
<h3>Federal Signal: Delving into Financials</h3>
Positive Revenue Trend: Examining Federal Signal's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.22% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Analyzing Profitability Metrics:
<ul>
<li>
Gross Margin: The company maintains a high gross margin of 27.3%, indicating strong cost management and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Federal Signal's EPS reflects a decline, falling below the industry average with a current EPS of 0.85.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.28.
Valuation Overview:
<ul>
<li>
Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 28.54 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
</li>
<li>
Price to Sales (P/S) Ratio: The current P/S ratio of 2.94 is above industry norms, reflecting an elevated valuation for Federal Signal's stock and potential overvaluation based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio of 18.03, the company's market valuation exceeds industry averages.
</li>
</ul>
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Understanding the Significance of Insider Transactions</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
<h3>Transaction Codes To Focus On</h3>
When dissecting transactions, the focal point for <a href="https://www.benzinga.com/money/investing-tools">investors</a> is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000277509">Check Out The Full List Of Federal Signal's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Mark Weber Makes A Tactical Move: Adds Federal Signal Stock Options To Portfolio

Press Releases

Federal Signal Corporation Declares Dividend of $0.12 per share

Commodities

Federal Signal Reports Second Quarter Results Including Double-Digit Sales and Earnings Growth; Raises Full-Year Outlook

Federal Signal Completes Acquisition of Standard Equipment Company

Federal Signal to Host Third Quarter Earnings Conference Call on October 31, 2024

Federal Signal to Present at Baird's 2024 Global Industrials Conference

Federal Signal Reports Third Quarter Results Including 6% Organic Net Sales Growth and Double-Digit Earnings Improvement; Raises Full-Year Earnings Outlook and EBITDA Margin Targets for Safety and Security Systems Group

Federal Signal Completes Acquisition of Hog Technologies, A Leading U.S. Manufacturer of Road-Marking, Line-Removal and Waterblasting Equipment

Federal Signal to Host Fourth Quarter Earnings Conference Call on February 26, 2025

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