Comfort Systems USA (NYSE:FIX) Shares Gap Up - Here's What Happened

Key Points

• Comfort Systems USA shares opened sharply higher, rising from a prior close of $1,288.61 to $1,335 before settling near $1,311, despite trading below its 50- and 200-day moving averages.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $1,916.14, although KeyCorp and UBS recently lowered their targets.
• The company exceeded quarterly expectations, reporting $13.91 in EPS and $3.77 billion in revenue, while revenue grew 53.7% year over year; however, its quarterly dividend was cut from $0.90 to $0.10 per share.

Shares of Comfort Systems USA, Inc. (NYSE:FIX - Get Free Report) gapped up before the market opened on Wednesday. The stock had previously closed at $1,288.61, but opened at $1,335.00. Comfort Systems USA shares last traded at $1,311.0690, with a volume of 135,541 shares trading hands.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. DA Davidson set a $1,850.00 target price on Comfort Systems USA in a report on Monday. KeyCorp cut their price target on shares of Comfort Systems USA from $2,125.00 to $1,979.00 and set an "overweight" rating for the company in a report on Monday. Weiss Ratings lowered shares of Comfort Systems USA from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday. UBS Group lowered their price objective on shares of 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. Finally, The Goldman Sachs Group set a $1,875.00 price objective on shares of Comfort Systems USA in a research note 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 MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $1,916.14.

Comfort Systems USA Stock Performance

The firm's 50 day simple moving average is $1,585.43 and its 200-day simple moving average is $1,592.76. The company has a market capitalization of $46.80 billion, a price-to-earnings ratio of 28.95 and a beta of 1.66.

Comfort Systems USA (NYSE:FIX - Get Free Report) last issued its earnings results on Thursday, October 22nd. The construction company reported $13.91 EPS for the quarter, topping the consensus estimate of $12.85 by $1.06. The business had revenue of $3.77 billion during the quarter, compared to analyst estimates of $3.40 billion. The business's quarterly revenue was up 53.7% on a year-over-year basis. During the same period last year, the business earned $8.25 EPS. As a group, equities analysts anticipate that Comfort Systems USA, Inc. will post 49.21 earnings per share for the current fiscal year.

Comfort Systems USA Cuts Dividend

The firm also recently announced 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. This is a drop from Comfort Systems USA's previous quarterly dividend of $0.90. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $0.40 annualized dividend and a yield of 0.0%. Comfort Systems USA's dividend payout ratio (DPR) is presently 8.64%.

Insider Activity

In related news, Director Franklin Myers sold 4,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $1,693.92, for a total transaction of $6,775,680.00. Following the completion of the sale, the director directly owned 8,495 shares in the company, valued at approximately $14,389,850.40. This trade represents a 32.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Brian E. Lane sold 16,024 shares of the company's stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $1,608.21, for a total transaction of $25,769,957.04. Following the completion of the transaction, the insider owned 145,065 shares in the company, valued at approximately $233,294,983.65. This represents a 9.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 26,078 shares of company stock worth $43,211,828 in the last 90 days. Company insiders own 1.24% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of FIX. Jones Financial Companies Lllp acquired a new stake in shares of Comfort Systems USA in the second quarter worth $26,000. Glynn Capital Management LLC grew its holdings in shares of Comfort Systems USA by 58.3% in the 3rd quarter. Glynn Capital Management LLC now owns 19 shares of the construction company's stock worth $31,000 after purchasing an additional 7 shares during the last quarter. Avalon Trust Co bought a new position in Comfort Systems USA in the 2nd quarter valued at $32,000. Field & Main Bank bought a new position in shares of Comfort Systems USA in the second quarter worth about $32,000. Finally, Nvwm LLC bought a new position in Comfort Systems USA in the 3rd quarter valued at $35,000. Institutional investors and hedge funds own 96.51% of the company's stock.

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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