Comfort Systems USA (NYSE:FIX) Sets New 52-Week High - Time to Buy?

Key Points

• Comfort Systems USA reached a new 52-week high of $1,547.53 (last $1,524.17), and analysts hold an average "Buy" rating with a mean target of $1,573.67 — DA Davidson raised its target to $1,800.
• Strong quarterly results: the company reported EPS of $9.37 versus $6.75 expected and revenue of $2.65B (up 41.7% year-over-year), with a net margin of 11.23% and ROE of 48.52%.
• Insider selling alongside a dividend increase: the quarterly dividend was raised to $0.70 ($2.80 annual), while insiders sold 37,288 shares (roughly $53.7M) in the past 90 days, with insiders now owning 1.59% of the stock.

Comfort Systems USA, Inc. (NYSE:FIX - Get Free Report)'s stock price reached a new 52-week high on Wednesday . The company traded as high as $1,547.53 and last traded at $1,524.1720, with a volume of 121064 shares trading hands. The stock had previously closed at $1,424.91.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Wall Street Zen lowered shares of Comfort Systems USA from a "strong-buy" rating to a "buy" rating in a research note on Saturday, January 3rd. Zacks Research upgraded shares of Comfort Systems USA from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 24th. DA Davidson lifted their price target on shares of Comfort Systems USA from $1,200.00 to $1,800.00 and gave the stock a "buy" rating in a research note on Monday, February 23rd. UBS Group reiterated a "buy" rating and issued a $1,310.00 price target on shares of Comfort Systems USA in a research note on Monday, February 2nd. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Comfort Systems USA in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, Comfort Systems USA presently has an average rating of "Buy" and an average target price of $1,573.67.

Comfort Systems USA Price Performance

The business's 50 day moving average price is $1,351.95 and its 200 day moving average price is $1,088.37. The stock has a market capitalization of $53.57 billion, a P/E ratio of 52.45 and a beta of 1.60. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.21 and a quick ratio of 1.19.

Comfort Systems USA (NYSE:FIX - Get Free Report) last posted its quarterly earnings data on Thursday, February 19th. The construction company reported $9.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.75 by $2.62. The company had revenue of $2.65 billion for the quarter, compared to the consensus estimate of $2.34 billion. Comfort Systems USA had a net margin of 11.23% and a return on equity of 48.52%. The firm's revenue was up 41.7% compared to the same quarter last year. During the same quarter last year, the firm posted $4.09 earnings per share. Sell-side analysts forecast that Comfort Systems USA, Inc. will post 16.85 EPS for the current year.

Comfort Systems USA Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Friday, March 6th were issued a $0.70 dividend. The ex-dividend date of this dividend was Friday, March 6th. This is a positive change from Comfort Systems USA's previous quarterly dividend of $0.60. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.2%. Comfort Systems USA's payout ratio is 9.69%.

Insider Buying and Selling

In related news, CFO William George III sold 9,000 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $1,434.97, for a total value of $12,914,730.00. Following the transaction, the chief financial officer owned 37,824 shares of the company's stock, valued at approximately $54,276,305.28. This trade represents a 19.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Franklin Myers sold 8,636 shares of the firm's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $1,472.56, for a total transaction of $12,717,028.16. Following the completion of the transaction, the director directly owned 73,995 shares in the company, valued at approximately $108,962,077.20. The trade was a 10.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 37,288 shares of company stock valued at $53,677,038 in the last 90 days. 1.59% of the stock is owned by insiders.

Hedge Funds Weigh In On Comfort Systems USA

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Farmers & Merchants Investments Inc. lifted its holdings in Comfort Systems USA by 29.0% during the fourth quarter. Farmers & Merchants Investments Inc. now owns 40 shares of the construction company's stock valued at $37,000 after purchasing an additional 9 shares in the last quarter. Great Lakes Advisors LLC lifted its holdings in Comfort Systems USA by 3.0% during the fourth quarter. Great Lakes Advisors LLC now owns 312 shares of the construction company's stock valued at $291,000 after purchasing an additional 9 shares in the last quarter. JFS Wealth Advisors LLC lifted its holdings in Comfort Systems USA by 29.4% during the fourth quarter. JFS Wealth Advisors LLC now owns 44 shares of the construction company's stock valued at $41,000 after purchasing an additional 10 shares in the last quarter. West Michigan Advisors LLC lifted its holdings in Comfort Systems USA by 1.3% during the fourth quarter. West Michigan Advisors LLC now owns 768 shares of the construction company's stock valued at $717,000 after purchasing an additional 10 shares in the last quarter. Finally, EWA LLC lifted its holdings in Comfort Systems USA by 2.7% during the fourth quarter. EWA LLC now owns 379 shares of the construction company's stock valued at $353,000 after purchasing an additional 10 shares in the last quarter. Hedge funds and other institutional investors own 96.51% of the company's stock.

Comfort Systems USA Company Profile

Comfort Systems USA, Inc is a U.S.-based mechanical contracting company that provides a range of heating, ventilation and air conditioning (HVAC) services to commercial, industrial and institutional customers. The company focuses on the design, installation, maintenance and repair of HVAC systems, and it supports projects from initial engineering and system selection through long-term service agreements and upgrades.

Its service offerings include new construction and retrofit installations, preventive and corrective maintenance, emergency repair, energy management and building automation systems.

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