Key Points
- Insider sale: Director John Ronald Jr. Jeffrey sold 2,698 shares on April 27 for $1,793,738.32 (at $664.84/share), leaving him with 2,000 shares and representing a 57.43% reduction in his ownership after additional sales on April 21 and March 31.
- Earnings beat and capital return: Argan reported quarterly EPS of $3.47 vs. $1.99 expected and revenue of $262.05M, and its board approved a $200 million share repurchase plan while declaring a $0.50 quarterly dividend.
- Market position and analyst view: The stock trades near its 52-week high ($683.12) with a market cap of $8.77B and a P/E of 64.5, and analysts collectively rate the shares a "Moderate Buy" with an average target of $425.40.
Argan, Inc. (NYSE:AGX - Get Free Report) Director John Ronald Jr. Jeffrey sold 2,698 shares of the business's stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $664.84, for a total transaction of $1,793,738.32. Following the sale, the director directly owned 2,000 shares in the company, valued at $1,329,680. This trade represents a 57.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.
John Ronald Jr. Jeffrey also recently made the following trade(s):
- On Tuesday, April 21st, John Ronald Jr. Jeffrey sold 3,636 shares of Argan stock. The stock was sold at an average price of $615.40, for a total transaction of $2,237,594.40.
- On Tuesday, March 31st, John Ronald Jr. Jeffrey sold 4,556 shares of Argan stock. The shares were sold at an average price of $539.85, for a total value of $2,459,556.60.
Argan Stock Performance
NYSE:AGX opened at $628.56 on Thursday. Argan, Inc. has a 52-week low of $142.97 and a 52-week high of $683.12. The company has a market cap of $8.77 billion, a P/E ratio of 64.53 and a beta of 0.46. The stock's 50-day simple moving average is $522.87 and its 200 day simple moving average is $403.12.
Argan (NYSE:AGX - Get Free Report) last issued its quarterly earnings results on Thursday, March 26th. The construction company reported $3.47 EPS for the quarter, beating the consensus estimate of $1.99 by $1.48. The firm had revenue of $262.05 million during the quarter, compared to analysts' expectations of $255.32 million. Argan had a return on equity of 33.62% and a net margin of 14.59%.The business's quarterly revenue was up 12.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.22 earnings per share. As a group, equities analysts predict that Argan, Inc. will post 11.44 earnings per share for the current fiscal year.
Argan announced that its board has approved a stock repurchase plan on Wednesday, April 8th that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the construction company to reacquire up to 2.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.
Argan Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Wednesday, April 22nd will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend is Wednesday, April 22nd. Argan's dividend payout ratio is presently 20.53%.
Wall Street Analyst Weigh In
Several analysts have issued reports on AGX shares. The Goldman Sachs Group upped their price target on shares of Argan from $399.00 to $518.00 and gave the stock a "buy" rating in a research report on Friday, March 27th. Freedom Capital raised shares of Argan to a "hold" rating in a research report on Tuesday, March 10th. Lake Street Capital boosted their price objective on shares of Argan from $325.00 to $375.00 and gave the stock a "hold" rating in a research note on Friday, March 27th. Wall Street Zen raised shares of Argan from a "hold" rating to a "buy" rating in a report on Saturday, March 28th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Argan in a research note on Monday, April 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $425.40.
Get Our Latest Research Report on AGX
Institutional Inflows and Outflows
A number of institutional investors have recently made changes to their positions in AGX. Millennium Management LLC lifted its holdings in Argan by 12.2% during the 1st quarter. Millennium Management LLC now owns 117,805 shares of the construction company's stock valued at $15,452,000 after purchasing an additional 12,854 shares during the last quarter. NewEdge Advisors LLC increased its holdings in shares of Argan by 118.3% in the first quarter. NewEdge Advisors LLC now owns 5,316 shares of the construction company's stock valued at $697,000 after purchasing an additional 2,881 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Argan by 13.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 35,567 shares of the construction company's stock valued at $4,665,000 after purchasing an additional 4,196 shares during the period. Intech Investment Management LLC raised its position in shares of Argan by 37.3% in the first quarter. Intech Investment Management LLC now owns 8,985 shares of the construction company's stock valued at $1,179,000 after purchasing an additional 2,442 shares during the period. Finally, Hsbc Holdings PLC acquired a new stake in shares of Argan during the 2nd quarter worth about $286,000. 79.43% of the stock is owned by institutional investors and hedge funds.
About Argan
(
Get Free Report)
Argan, Inc (NYSE: AGX) is a holding company that provides professional technical and management services to the power generation and renewable energy industries. Through its wholly owned subsidiaries, the company delivers engineering, procurement and construction management (EPCM), commissioning and operations and maintenance (O&M) services for a broad range of energy facilities. Argan focuses on projects for utility, industrial and municipally owned clients, helping to bring efficient thermal and renewable energy plants into operation and maintain optimal performance over the asset life cycle.
The company's principal subsidiaries include Gemma Power Systems, which specializes in turnkey construction of combined-cycle, simple-cycle, cogeneration and renewable energy plants; Atlantic Projects Company, which provides electrical balance-of-plant, control systems, instrumentation and commissioning services; and Infrastructure Solutions, which offers industrial maintenance, outage support and modification services.
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