Comfort Systems USA, Inc. $FIX Stock: Smith Group Asset Management LLC Cuts Position

Key Points

• Smith Group Asset Management cut its Comfort Systems USA stake by 39% in the third quarter, selling 20,173 shares and retaining 31,600 shares worth approximately $52.3 million. Institutional investors collectively own 96.51% of FIX.
• Analysts maintain a generally positive outlook, with eight Buy ratings and two Holds, producing a “Moderate Buy” consensus and an average price target of $1,916.14. However, several firms recently lowered their targets.
• Comfort Systems USA reported stronger-than-expected quarterly results, with $13.91 in EPS and $3.77 billion in revenue, but insiders sold more than $43.2 million of stock over the past three months. The company also reduced its quarterly dividend from $0.90 to $0.10 per share.

Smith Group Asset Management LLC decreased its stake in Comfort Systems USA, Inc. (NYSE:FIX - Free Report) by 39.0% in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 31,600 shares of the construction company's stock after selling 20,173 shares during the period. Comfort Systems USA makes up 3.4% of Smith Group Asset Management LLC's investment portfolio, making the stock its 9th largest holding. Smith Group Asset Management LLC owned 0.09% of Comfort Systems USA worth $52,269,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently added to or reduced their stakes in the company. Simplicity Wealth LLC acquired a new stake in shares of Comfort Systems USA in the 2nd quarter worth approximately $601,000. New York State Teachers Retirement System increased its stake in Comfort Systems USA by 2.7% in the 1st quarter. New York State Teachers Retirement System now owns 30,665 shares of the construction company's stock valued at $42,287,000 after purchasing an additional 800 shares in the last quarter. Argent Capital Management LLC increased its stake in Comfort Systems USA by 20.8% in the 1st quarter. Argent Capital Management LLC now owns 6,985 shares of the construction company's stock valued at $9,632,000 after purchasing an additional 1,202 shares in the last quarter. IPG Investment Advisors LLC purchased a new position in Comfort Systems USA in the 2nd quarter valued at approximately $1,833,000. Finally, NewEdge Advisors LLC raised its holdings in Comfort Systems USA by 30.5% during the second quarter. NewEdge Advisors LLC now owns 6,476 shares of the construction company's stock worth $12,835,000 after purchasing an additional 1,512 shares during the last quarter. Hedge funds and other institutional investors own 96.51% of the company's stock.

Analysts Set New Price Targets

FIX has been the topic of a number of research analyst reports. KeyCorp decreased their target price on Comfort Systems USA from $2,125.00 to $1,979.00 and set an "overweight" rating on the stock in a research report on Monday. Zacks Research lowered Comfort Systems USA from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. DA Davidson set a $1,850.00 price target on Comfort Systems USA in a research report on Monday. Oppenheimer cut their price target on Comfort Systems USA from $2,400.00 to $2,000.00 and set an "outperform" rating for the company in a research note on Monday. Finally, The Goldman Sachs Group set a $1,875.00 price objective on shares of Comfort Systems USA in a research report on Tuesday, October 20th. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $1,916.14.

Insider Activity

In related news, CFO William George, III sold 2,554 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $1,859.65, for a total transaction of $4,749,546.10. Following the sale, the chief financial officer owned 30,250 shares of the company's stock, valued at $56,254,412.50. This trade represents a 7.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Brian Lane sold 16,024 shares of Comfort Systems USA stock in a transaction dated Wednesday, August 26th. The stock was sold at an average price of $1,608.21, for a total value of $25,769,957.04. Following the sale, the insider owned 145,065 shares of the company's stock, valued at approximately $233,294,983.65. This represents a 9.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 26,078 shares of company stock worth $43,211,828 over the last three months. 1.24% of the stock is currently owned by corporate insiders.

Comfort Systems USA Trading Up 4.5%

Shares of FIX opened at $1,346.81 on Thursday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.15 and a quick ratio of 1.13. The firm has a 50 day simple moving average of $1,577.57 and a 200-day simple moving average of $1,594.63. Comfort Systems USA, Inc. has a 1-year low of $841.66 and a 1-year high of $2,073.99. The stock has a market cap of $47.12 billion, a price-to-earnings ratio of 29.08 and a beta of 1.66.

Comfort Systems USA (NYSE:FIX - Get Free Report) last posted its earnings results on Thursday, October 22nd. The construction company reported $13.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $12.85 by $1.06. The firm had revenue of $3.77 billion for the quarter, compared to analyst estimates of $3.40 billion. Comfort Systems USA had a return on equity of 55.24% and a net margin of 13.01%. Comfort Systems USA's revenue was up 53.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $8.25 EPS. Equities analysts forecast that Comfort Systems USA, Inc. will post 49.21 EPS for the current fiscal year.

Comfort Systems USA Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Thursday, November 12th will be given a $0.10 dividend. This is a decrease from Comfort Systems USA's previous quarterly dividend of $0.90. This represents a $0.40 annualized dividend and a dividend yield of 0.0%. The ex-dividend date is Thursday, November 12th. Comfort Systems USA's dividend payout ratio (DPR) is currently 8.64%.

About Comfort Systems USA

Comfort Systems USA, Inc NYSE: FIX is a provider of mechanical and electrical contracting services for commercial, industrial, and institutional customers. The company designs, installs, maintains, repairs, and replaces heating, ventilation, air conditioning, and temperature-control systems, as well as plumbing, piping, electrical, and related building systems.

Its services support new construction, building renovations, facility upgrades, and ongoing maintenance. Comfort Systems USA also provides specialized services for data centers, manufacturing facilities, healthcare buildings, educational institutions, and other complex commercial and industrial projects.

Founded in 1997 and headquartered in Houston, Texas, the company operates through a network of regional contracting businesses serving customers across the United States.

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