Diane Bonina, VP at Federal Signal FSS, reported acquisition of company stock options on May 6, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Bonina, VP at Federal Signal, a company in the Industrials sector, acquired stock options for 4,883 shares of FSS. The options allow Bonina to buy the company’s stock at $86.58 per share.
The latest update on Wednesday morning shows Federal Signal shares up by 0.88%, trading at $88.09. At this price, Bonina’s 4,883 shares are worth $7,373.
Discovering Federal Signal: A Closer Look
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’s revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 9.16%. This indicates a substantial 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.
Analyzing Profitability Metrics:
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Gross Margin: The company excels with a remarkable gross margin of 28.2%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): Federal Signal’s EPS is below the industry average. The company faced challenges with a current EPS of 0.76. This suggests a potential decline in earnings.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.25.
Evaluating Valuation:
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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.
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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.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 15.65, Federal Signal demonstrates exemplary market valuation, surpassing industry averages.
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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Delving Into the Significance of Insider Transactions
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
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.
Deciphering Transaction Codes in Insider Filings
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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.
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.
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