Some Comfort Systems USA, Inc. (NYSE:FIX) shareholders may be a little concerned to see that the CEO & Director, Brian Lane, recently sold a substantial US$22m worth of stock at a price of US$1,970 per share. However, that sale only accounted for 6.5% of their holding, so arguably it doesn't say much about their conviction.

Comfort Systems USA Insider Transactions Over The Last Year

In fact, the recent sale by Brian Lane was the biggest sale of Comfort Systems USA shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$2,035, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 6.5% of Brian Lane's holding.

Comfort Systems USA insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Comfort Systems USA better if I see some big insider buys.

Insider Ownership Of Comfort Systems USA

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Comfort Systems USA insiders own 1.2% of the company, currently worth about US$834m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Comfort Systems USA Insiders?

Insiders haven't bought Comfort Systems USA stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Comfort Systems USA is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Comfort Systems USA has 1 warning sign we think you should be aware of.

Of course Comfort Systems USA may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.