Don't Ignore The Insider Selling In Comfort Systems USA

Some Comfort Systems USA, Inc. (NYSE:FIX) shareholders may be a little concerned to see that the Independent Director, Pablo Mercado, recently sold a substantial US$785k worth of stock at a price of US$436 per share. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

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Comfort Systems USA Insider Transactions Over The Last Year

The CEO, President & Director, Brian Lane, made the biggest insider sale in the last 12 months. That single transaction was for US$6.7m worth of shares at a price of US$449 each. That means that an insider was selling shares at around the current price of US$439. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Comfort Systems USA insiders didn't buy any shares 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!

View our latest analysis for Comfort Systems USA

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Insider Ownership Of Comfort Systems USA

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$215m worth of shares (which is 1.4% 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.

What Might The Insider Transactions At Comfort Systems USA Tell Us?

Insiders haven't bought Comfort Systems USA stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Comfort Systems USA is growing earnings. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Comfort Systems USA.

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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.