We wouldn't blame Comfort Systems USA, Inc. (NYSE:FIX) shareholders if they were a little worried about the fact that Brian Lane, the CEO, President & Director recently netted about US$4.9m selling shares at an average price of US$330. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.0%.
Comfort Systems USA Insider Transactions Over The Last Year
Notably, that recent sale by CEO, President & Director Brian Lane was not the only time they sold Comfort Systems USA shares this year. Earlier in the year, they fetched US$183 per share in a -US$7.3m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$331. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 16% of Brian Lane's holding.
All up, insiders sold more shares in Comfort Systems USA than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Comfort Systems USA insiders own about US$184m worth of shares (which is 1.6% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Comfort Systems USA Tell Us?
Insiders sold Comfort Systems USA shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Comfort Systems USA makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Comfort Systems USA has 1 warning sign and it would be unwise to ignore it.
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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.