Comfort Systems USA (NYSE:FIX) Shares Gap Up After Earnings Beat

Key Points

• Comfort Systems USA (NYSE:FIX) shares experienced a significant increase, opening at $665.30 after a better-than-expected earnings report, with earnings per share of $6.53 exceeding estimates by $1.69.
• The company reported a revenue of $2.17 billion for the quarter, marking a 20.1% annual increase compared to the previous year.
• Comfort Systems USA announced a dividend increase from $0.45 to $0.50 per share, reflecting a positive change in their annualized payout.
• Several analysts upgraded their rating on the stock, with DA Davidson raising the target price to $630.00, emphasizing a "buy" rating.

Comfort Systems USA, Inc. (NYSE:FIX - Get Free Report) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $562.83, but opened at $665.30. Comfort Systems USA shares last traded at $661.68, with a volume of 174,445 shares trading hands.

The construction company reported $6.53 earnings per share for the quarter, topping analysts' consensus estimates of $4.84 by $1.69. The firm had revenue of $2.17 billion during the quarter, compared to analyst estimates of $1.97 billion. Comfort Systems USA had a net margin of 8.13% and a return on equity of 36.35%. The business's revenue was up 20.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.74 EPS.

Comfort Systems USA Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Monday, August 25th will be given a dividend of $0.50 per share. This is a positive change from Comfort Systems USA's previous quarterly dividend of $0.45. This represents a $2.00 dividend on an annualized basis and a yield of 0.30%. Comfort Systems USA's payout ratio is currently 10.80%.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. DA Davidson boosted their target price on shares of Comfort Systems USA from $465.00 to $630.00 and gave the stock a "buy" rating in a research report on Monday, June 30th. Stifel Nicolaus boosted their target price on shares of Comfort Systems USA from $512.00 to $581.00 and gave the stock a "buy" rating in a research report on Friday, July 11th. Finally, Wall Street Zen lowered shares of Comfort Systems USA from a "buy" rating to a "hold" rating in a research report on Saturday, July 5th. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, Comfort Systems USA has a consensus rating of "Moderate Buy" and a consensus target price of $572.60.

Insider Activity at Comfort Systems USA

In other news, Director Pablo G. Mercado sold 1,800 shares of the business's stock in a transaction dated Monday, May 5th. The shares were sold at an average price of $436.10, for a total transaction of $784,980.00. Following the transaction, the director owned 7,236 shares in the company, valued at approximately $3,155,619.60. The trade was a 19.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Darcy Anderson sold 8,000 shares of the business's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $506.82, for a total transaction of $4,054,560.00. Following the transaction, the director owned 26,535 shares in the company, valued at approximately $13,448,468.70. The trade was a 23.16% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 40,800 shares of company stock worth $18,696,795. Insiders own 1.59% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of Comfort Systems USA by 13.1% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,556 shares of the construction company's stock worth $824,000 after purchasing an additional 296 shares during the period. Farther Finance Advisors LLC increased its stake in Comfort Systems USA by 27.7% in the first quarter. Farther Finance Advisors LLC now owns 1,102 shares of the construction company's stock valued at $364,000 after acquiring an additional 239 shares during the period. Wealth Enhancement Advisory Services LLC increased its stake in Comfort Systems USA by 97.7% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 7,375 shares of the construction company's stock valued at $2,377,000 after acquiring an additional 3,644 shares during the period. Dynamic Advisor Solutions LLC increased its stake in Comfort Systems USA by 256.0% in the first quarter. Dynamic Advisor Solutions LLC now owns 2,040 shares of the construction company's stock valued at $658,000 after acquiring an additional 1,467 shares during the period. Finally, Spire Wealth Management increased its stake in Comfort Systems USA by 9.8% in the first quarter. Spire Wealth Management now owns 1,005 shares of the construction company's stock valued at $324,000 after acquiring an additional 90 shares during the period. Institutional investors own 96.51% of the company's stock.

Comfort Systems USA Stock Performance

The firm has a market cap of $23.25 billion, a P/E ratio of 39.72 and a beta of 1.51. The stock's 50 day moving average is $510.31 and its two-hundred day moving average is $434.24. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.08 and a quick ratio of 1.05.

Comfort Systems USA Company Profile

Comfort Systems USA, Inc, together with its subsidiaries, provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States. It operates through two segments, Mechanical and Electrical. The company offers heating, ventilation, and air conditioning systems, as well as plumbing, electrical, piping and controls, off-site construction, monitoring, and fire protection.

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