We wouldn't blame Comfort Systems USA, Inc. (NYSE:FIX) shareholders if they were a little worried about the fact that William Sandbrook, the Independent Director recently netted about US$926k selling shares at an average price of US$185. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.
Check out our latest analysis for Comfort Systems USA
The Last 12 Months Of Insider Transactions At Comfort Systems USA
The CEO, President & Director, Brian Lane, made the biggest insider sale in the last 12 months. That single transaction was for US$7.3m worth of shares at a price of US$183 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$202. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 16% of Brian Lane's holding.
Over the last year we saw more insider selling of Comfort Systems USA shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Comfort Systems USA insiders own about US$117m worth of shares (which is 1.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Comfort Systems USA Insiders?
Insiders haven't bought Comfort Systems USA stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Comfort Systems USA is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Comfort Systems USA and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.