Key Points
- Argan director Peter Getsinger sold 4,728 shares on June 16 at an average price of $708.65, for total proceeds of about $3.35 million. After the sale, he still held 6,880 shares, and the transaction reduced his position by 40.73%.
- Argan’s stock has been strong recently, with shares up 4.3% and trading near $720.28, close to its 52-week high of $779. The company also has a market cap of about $10.1 billion.
- Fundamentals remain solid: Argan recently beat quarterly earnings estimates with EPS of $3.24 and revenue up 50.2% year over year. The company also approved a $200 million share buyback and announced a quarterly dividend.
Argan, Inc. (NYSE:AGX - Get Free Report) Director Karen Sweeney sold 300 shares of Argan stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $705.00, for a total value of $211,500.00. Following the completion of the transaction, the director owned 1,548 shares of the company's stock, valued at approximately $1,091,340. This represents a 16.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.
Argan Price Performance
Shares of AGX stock opened at $720.28 on Thursday. The company has a market cap of $10.10 billion, a PE ratio of 63.29 and a beta of 0.58. Argan, Inc. has a 1 year low of $193.82 and a 1 year high of $779.00. The stock's 50 day simple moving average is $653.49 and its two-hundred day simple moving average is $485.14.
Argan (NYSE:AGX - Get Free Report) last posted its quarterly earnings data on Thursday, June 4th. The construction company reported $3.24 EPS for the quarter, topping the consensus estimate of $2.31 by $0.93. The company had revenue of $290.95 million during the quarter, compared to analyst estimates of $256.03 million. Argan had a net margin of 15.48% and a return on equity of 36.89%. Argan's quarterly revenue was up 50.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.60 earnings per share. Equities research analysts expect that Argan, Inc. will post 12.6 EPS for the current year.
Argan announced that its Board of Directors has authorized a share buyback plan on Wednesday, April 8th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the construction company to purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its stock is undervalued.
Argan Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 23rd will be paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend is Thursday, July 23rd. Argan's payout ratio is currently 17.57%.
Institutional Inflows and Outflows
Several large investors have recently made changes to their positions in AGX. Empowered Funds LLC purchased a new stake in shares of Argan during the 1st quarter worth $692,000. DV Trading LLC purchased a new position in Argan in the first quarter valued at about $327,000. CTC Alternative Strategies Ltd. bought a new position in Argan in the first quarter worth about $301,000. Norris Financial Group LLC bought a new position in Argan in the first quarter worth about $4,850,000. Finally, Western Wealth Management LLC purchased a new stake in shares of Argan during the first quarter valued at about $25,000. 79.43% of the stock is owned by institutional investors.
Wall Street Analyst Weigh In
Several equities analysts have recently commented on the company. Zacks Research lowered Argan from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 26th. Wall Street Zen upgraded shares of Argan from a "hold" rating to a "buy" rating in a report on Saturday, March 28th. JPMorgan Chase & Co. raised shares of Argan from a "neutral" rating to an "overweight" rating and set a $550.00 target price on the stock in a research report on Friday, March 27th. Weiss Ratings restated a "buy (b)" rating on shares of Argan in a report on Monday, April 6th. Finally, Lake Street Capital upped their price target on shares of Argan from $375.00 to $600.00 and gave the stock a "hold" rating in a research report on Friday, June 5th. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Argan has a consensus rating of "Moderate Buy" and a consensus price target of $470.40.
Get Our Latest Analysis on AGX
Key Stories Impacting Argan
Here are the key news stories impacting Argan this week:
- Positive Sentiment: Argan’s latest quarterly results were strong, with earnings and revenue both beating estimates by a wide margin, reinforcing the company’s growth and margin profile. Argan earnings report
- Positive Sentiment: Analysts highlighted Argan’s gas-heavy backlog as a potential tailwind, citing rising power demand and ongoing infrastructure opportunities. Zacks backlog article
- Neutral Sentiment: Argan’s board has authorized a $200 million share repurchase program and the company recently announced a quarterly dividend, both of which can help support the stock over time. Argan capital return details
- Negative Sentiment: Multiple insiders, including CEO David Hibbert Watson, Chairman William F. Griffin Jr., and directors Peter Getsinger and Karen Sweeney, sold shares over the past few days, which may weigh on sentiment as investors often view clustered insider selling cautiously. Insider selling alert
Argan Company Profile
(
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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