Comfort Systems USA (NYSE:FIX) Shares Gap Down - What's Next?

Key Points

• Comfort Systems USA shares plunged: FIX opened at $1,115, down sharply from its prior close of $1,285.13, amid heavy trading.
• Latest results beat expectations: Quarterly EPS was $13.91 versus $12.85 forecast, while revenue reached $3.77 billion, up 53.7% year over year.
• Analyst targets and dividend moved lower: Several firms cut price targets, though the consensus rating remained “Moderate Buy” with an average target of $1,916.14. The quarterly dividend was reduced from $0.90 to $0.10 per share.

Comfort Systems USA, Inc. (NYSE:FIX - Get Free Report) gapped down before the market opened on Wednesday. The stock had previously closed at $1,285.13, but opened at $1,115.00. Comfort Systems USA shares last traded at $1,113.5440, with a volume of 279,873 shares changing hands.

Analysts Set New Price Targets

Several brokerages have issued reports on FIX. UBS Group lowered their target price on Comfort Systems USA from $2,225.00 to $1,900.00 and set a "buy" rating on the stock in a research note on Monday, October 26th. Weiss Ratings lowered Comfort Systems USA from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, October 23rd. Zacks Research lowered Comfort Systems USA from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Stifel Nicolaus set a $1,808.00 price objective on Comfort Systems USA in a research note on Monday, October 26th. Finally, Oppenheimer dropped their price objective on shares of Comfort Systems USA from $2,400.00 to $2,000.00 and set an "outperform" rating on the stock in a report on Monday, October 26th. Eight analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $1,916.14.

Comfort Systems USA Stock Down 16.9%

The company has a quick ratio of 1.13, a current ratio of 1.15 and a debt-to-equity ratio of 0.01. The stock has a 50-day moving average of $1,545.56 and a 200-day moving average of $1,598.92. The company has a market cap of $37.37 billion, a PE ratio of 23.13 and a beta of 1.64.

Comfort Systems USA (NYSE:FIX - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The construction company reported $13.91 EPS for the quarter, beating the consensus estimate 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%. The company's revenue was up 53.7% on a year-over-year basis. During the same period in the prior year, the company earned $8.25 EPS. Sell-side analysts predict that Comfort Systems USA, Inc. will post 50.32 earnings per share 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. Shareholders of record on Thursday, November 12th will be paid a dividend of $0.10 per share. The ex-dividend date is Thursday, November 12th. This is a negative change from Comfort Systems USA's previous quarterly dividend of $0.90. This represents a $0.40 dividend on an annualized basis and a yield of 0.0%. Comfort Systems USA's dividend payout ratio (DPR) is presently 7.77%.

Insider Activity at Comfort Systems USA

In related news, CFO William George, III sold 2,554 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $1,859.65, for a total value of $4,749,546.10. Following the sale, the chief financial officer owned 30,250 shares in the company, valued at approximately $56,254,412.50. This trade represents a 7.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Franklin Myers sold 4,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $1,693.92, for a total transaction of $6,775,680.00. Following the completion of the transaction, the director owned 8,495 shares in the company, valued at $14,389,850.40. The trade was a 32.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 26,078 shares of company stock valued at $43,211,828 over the last 90 days. Corporate insiders own 1.24% of the company's stock.

Hedge Funds Weigh In On Comfort Systems USA

A number of large investors have recently bought and sold shares of FIX. Signature Equity Partners LLC raised its stake in Comfort Systems USA by 16.7% during the first quarter. Signature Equity Partners LLC now owns 35 shares of the construction company's stock worth $48,000 after acquiring an additional 5 shares in the last quarter. Capital Advisors Inc. OK increased its holdings in Comfort Systems USA by 1.9% in the second quarter. Capital Advisors Inc. OK now owns 321 shares of the construction company's stock worth $636,000 after purchasing an additional 6 shares in the last quarter. Versant Capital Management Inc grew its holdings in Comfort Systems USA by 3.4% in the third quarter. Versant Capital Management Inc now owns 183 shares of the construction company's stock worth $303,000 after purchasing an additional 6 shares during the period. LifeGoal Investments LLC grew its stake in Comfort Systems USA by 1.9% in the third quarter. LifeGoal Investments LLC now owns 314 shares of the construction company's stock valued at $519,000 after acquiring an additional 6 shares during the period. Finally, Petra Financial Advisors Inc. raised its holdings in Comfort Systems USA by 0.7% during the first quarter. Petra Financial Advisors Inc. now owns 1,080 shares of the construction company's stock worth $1,489,000 after buying an additional 7 shares during the last quarter. Institutional investors own 96.51% of the company's stock.

Comfort Systems USA Company Profile

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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