Witness A Substantial Acquisition As Jennifer L Sherman Acquires $63K In Federal Signal Stock Options

In a new SEC filing on May 6, it was unveiled that Sherman, President & CEO at Federal Signal (NYSE:FSS), acquired stock options for 39,474 shares.

What Happened: Sherman, President & CEO at Federal Signal, acquired stock options for 39,474 shares of FSS. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The options allow Sherman to buy the company's stock at $86.58 per share.

Federal Signal shares are trading up 1.01% at $88.2 at the time of this writing on Wednesday morning. Since the current price is $88.2, this makes Sherman's 39,474 shares worth $63,947.

All You Need to Know About 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.

Federal Signal's Financial Performance

Revenue Growth: Federal Signal displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 9.16%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: Achieving a high gross margin of 28.2%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Federal Signal's EPS reflects a decline, falling below the industry average with a current EPS of 0.76.

Debt Management: Federal Signal's debt-to-equity ratio is below the industry average. With a ratio of 0.25, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 25.61 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.84 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 15.65, Federal Signal demonstrates a robust market valuation, outperforming industry benchmarks.

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.

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Understanding the Significance of Insider Transactions

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

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.

Understanding Crucial 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.