Comfort Systems USA (NYSE:FIX) Stock Price Down 6.8% - Should You Sell?

Key Points

• Comfort Systems USA shares fell 6.8% in midday trading, even though the company has recently posted strong results and remains well above its 50-day and 200-day moving averages.
• The company beat quarterly earnings expectations, reporting $10.51 EPS versus $6.81 expected on revenue of $2.87 billion, with revenue up 56.5% year over year. Analysts now expect full-year EPS of 43.17.
• Analyst sentiment remains positive overall, with seven Buy ratings and two Hold ratings, giving the stock a consensus “Moderate Buy” and an average price target of $1,923.20. The company also raised its quarterly dividend to $0.80 per share from $0.70.

Comfort Systems USA, Inc. (NYSE:FIX - Get Free Report) shares were down 6.8% during mid-day trading on Monday . The stock traded as low as $1,877.12 and last traded at $1,856.7070. Approximately 93,449 shares changed hands during mid-day trading, a decline of 78% from the average daily volume of 420,878 shares. The stock had previously closed at $1,992.74.

Analyst Ratings Changes

Several equities analysts have recently issued reports on FIX shares. KeyCorp upgraded Comfort Systems USA from a "sector weight" rating to an "overweight" rating and set a $2,004.00 price target on the stock in a research note on Friday, April 24th. Weiss Ratings reissued a "buy (b)" rating on shares of Comfort Systems USA in a report on Monday, April 20th. Wall Street Zen downgraded Comfort Systems USA from a "strong-buy" rating to a "buy" rating in a report on Sunday, May 10th. Stifel Nicolaus raised their price objective on Comfort Systems USA from $1,611.00 to $1,819.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Finally, Zacks Research downgraded Comfort Systems USA from a "strong-buy" rating to a "hold" rating in a report on Friday, April 24th. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $1,923.20.

Comfort Systems USA Stock Performance

The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.21 and a current ratio of 1.24. The company has a market cap of $65.21 billion, a price-to-earnings ratio of 53.67 and a beta of 1.70. The company has a fifty day moving average of $1,599.07 and a two-hundred day moving average of $1,263.40.

Comfort Systems USA (NYSE:FIX - Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The construction company reported $10.51 earnings per share for the quarter, beating the consensus estimate of $6.81 by $3.70. The company had revenue of $2.87 billion for the quarter, compared to the consensus estimate of $2.39 billion. Comfort Systems USA had a return on equity of 51.69% and a net margin of 12.07%.Comfort Systems USA's revenue for the quarter was up 56.5% on a year-over-year basis. During the same quarter last year, the business posted $4.75 EPS. Equities research analysts anticipate that Comfort Systems USA, Inc. will post 43.17 EPS for the current year.

Comfort Systems USA Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Shareholders of record on Friday, May 15th will be issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend is Friday, May 15th. This is a boost from Comfort Systems USA's previous quarterly dividend of $0.70. Comfort Systems USA's dividend payout ratio (DPR) is presently 9.23%.

Insider Activity

In other Comfort Systems USA news, insider Brian E. Lane sold 11,113 shares of Comfort Systems USA stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $1,969.84, for a total transaction of $21,890,831.92. Following the transaction, the insider directly owned 161,089 shares of the company's stock, valued at approximately $317,319,555.76. The trade was a 6.45% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Franklin Myers sold 8,636 shares of Comfort Systems USA stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $1,472.56, for a total value of $12,717,028.16. Following the transaction, the director directly owned 73,995 shares in the company, valued at $108,962,077.20. The trade was a 10.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 61,024 shares of company stock worth $99,678,386. 1.24% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Quent Capital LLC bought a new position in shares of Comfort Systems USA in the 3rd quarter worth about $25,000. Ameriflex Group Inc. raised its position in shares of Comfort Systems USA by 100.0% in the 3rd quarter. Ameriflex Group Inc. now owns 30 shares of the construction company's stock worth $25,000 after acquiring an additional 15 shares in the last quarter. Core Wealth Advisors LLC bought a new position in shares of Comfort Systems USA in the 4th quarter worth about $28,000. CENTRAL TRUST Co bought a new position in shares of Comfort Systems USA in the 1st quarter worth about $46,000. Finally, Ascentis Independent Advisors bought a new position in shares of Comfort Systems USA in the 1st quarter worth about $46,000. 96.51% of the stock is owned by institutional investors.

About Comfort Systems USA

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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