Insider Activity Spotlight: Mark Weber Acquires Federal Signal Stock Options Worth $15K

A substantial insider move unfolded on May 6, as Weber, SVP & COO at Federal Signal FSS, reported the acquisition of stock options for 9,773 shares in an SEC filing.

What Happened: Revealed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Weber, SVP & COO at Federal Signal, strategically acquired stock options for 9,773 shares of FSS. These options empower Weber to buy the company's stock at a favorable exercise price of $86.58 per share.

The Wednesday morning update indicates Federal Signal shares up by 1.01%, currently priced at $88.2. At this value, Weber's 9,773 shares are worth $15,832.

Unveiling the Story Behind 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.

A Deep Dive into Federal Signal's Financials

Positive Revenue Trend: Examining Federal Signal's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.16% as of 31 March, 2025, showcasing a substantial increase in 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.

Insights into Profitability:

• Gross Margin: With a high gross margin of 28.2%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Federal Signal exhibits below-average bottom-line performance with a current EPS of 0.76.

Debt Management: With a below-average debt-to-equity ratio of 0.25, Federal Signal adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 25.61 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.84 is above industry norms, reflecting an elevated valuation for Federal Signal's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 15.65 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

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.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

A Closer Look at Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Federal Signal's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.