We wouldn't blame Comfort Systems USA, Inc. (NYSE:FIX) shareholders if they were a little worried about the fact that Franklin Myers, the Independent Chairman recently netted about US$4.7m selling shares at an average price of US$390. That's a big disposal, and it decreased their holding size by 10%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Comfort Systems USA

The CEO, President & Director, Brian Lane, made the biggest insider sale in the last 12 months. That single transaction was for US$5.0m worth of shares at a price of US$312 each. That means that even when the share price was below the current price of US$391, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 7.4% of Brian Lane's holding.

Over the last year we saw more insider selling of Comfort Systems USA shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Comfort Systems USA Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Comfort Systems USA insiders own 1.5% of the company, worth about US$207m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Comfort Systems USA Tell Us?

Insiders sold Comfort Systems USA shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Comfort Systems USA makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Comfort Systems USA. In terms of investment risks, we've identified 1 warning sign with Comfort Systems USA and understanding it should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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.