Have Comfort Systems USA Insiders Been Selling Stock?
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 & Director recently netted about US$26m selling shares at an average price of US$1,608. However, that sale only accounted for 9.9% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Comfort Systems USA
Notably, that recent sale by Brian Lane is the biggest insider sale of Comfort Systems USA shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$1,519. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Comfort Systems USA didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Comfort Systems USA
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Does Comfort Systems USA Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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$626m worth of shares (which is 1.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Comfort Systems USA Insider Transactions Indicate?
Insiders sold Comfort Systems USA shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Comfort Systems USA is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Comfort Systems USA you should be aware of.
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.