Some Comfort Systems USA, Inc. (NYSE:FIX) shareholders may be a little concerned to see that the Independent Director, Darcy Anderson, recently sold a substantial US$1.2m worth of stock at a price of US$345 per share. However, that sale only accounted for 8.0% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Comfort Systems USA
Over the last year, we can see that the biggest insider sale was by the CEO, President & Director, Brian Lane, for US$7.3m worth of shares, at about US$183 per share. That means that an insider was selling shares at slightly below the current price (US$345). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 16% of Brian Lane's holding.
In total, Comfort Systems USA insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership Of Comfort Systems USA
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Comfort Systems USA insiders own 1.6% of the company, worth about US$196m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Comfort Systems USA is profitable and growing, we're not too worried by this. 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 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. Case in point: We've spotted 1 warning sign for Comfort Systems USA you should be aware of.
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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.