Argan (NYSE:AGX) Director Sells $3,350,497.20 in Stock

Argan, Inc. (NYSE:AGX) Director Peter Getsinger sold 4,728 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $708.65, for a total transaction of $3,350,497.20. Following the transaction, the director directly owned 6,880 shares of the company’s stock, valued at $4,875,512. The trade was a 40.73% 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.

Argan Stock Performance

Shares of NYSE:AGX traded up $29.89 during midday trading on Wednesday, reaching $720.28. 317,397 shares of the company’s stock were exchanged, compared to its average volume of 407,867. The company’s 50 day simple moving average is $650.54 and its two-hundred day simple moving average is $482.75. The firm has a market capitalization of $10.10 billion, a PE ratio of 63.29 and a beta of 0.59. Argan, Inc. has a 12 month low of $193.82 and a 12 month high of $779.00.

Argan (NYSE:AGX) last released its quarterly earnings data on Thursday, June 4th. The construction company reported $3.24 EPS for the quarter, topping analysts’ consensus estimates of $2.31 by $0.93. The company had revenue of $290.95 million during the quarter, compared to the consensus estimate of $256.03 million. Argan had a net margin of 15.48% and a return on equity of 36.89%. The firm’s revenue for the quarter was up 50.2% compared to the same quarter last year. During the same period last year, the firm earned $1.60 EPS. On average, research analysts anticipate that Argan, Inc. will post 12.6 earnings per share for the current year.

Argan declared that its Board of Directors has initiated a stock repurchase 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 a sign that the company’s leadership believes its stock is undervalued.

Argan Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, July 23rd will be issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Thursday, July 23rd. Argan’s dividend payout ratio (DPR) is currently 17.57%.

Analysts Set New Price Targets

A number of brokerages have weighed in on AGX. The Goldman Sachs Group boosted their target price on shares of Argan from $399.00 to $518.00 and gave the stock a “buy” rating in a research note on Friday, March 27th. Freedom Capital raised shares of Argan to a “hold” rating in a research note on Tuesday, March 10th. JPMorgan Chase & Co. raised shares of Argan from a “neutral” rating to an “overweight” rating and set a $550.00 target price for the company in a research note on Friday, March 27th. Lake Street Capital boosted their target price on shares of Argan from $375.00 to $600.00 and gave the stock a “hold” rating in a research note on Friday, June 5th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Argan in a research note on Monday, April 6th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $470.40.

Key Headlines Impacting Argan

Here are the key news stories impacting Argan this week:

• Positive Sentiment: Argan’s backlog is heavily weighted toward gas projects, and rising power demand could help support future growth and revenue visibility. Argan’s Backlog Is 79% Gas-Focused: Can Power Demand Fuel Upside?
• Neutral Sentiment: The company also recently reported strong quarterly results, with earnings and revenue both beating expectations, which continues to reinforce the bullish long-term setup for AGX.
• Negative Sentiment: Recent insider sales by CEO David Hibbert Watson, Chairman William F. Griffin Jr., and Director Cynthia Flanders may raise some caution among investors, even though the sales do not necessarily signal a change in business fundamentals. Argan (NYSE:AGX) CEO David Hibbert Watson Sells 1,880 Shares

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of AGX. Millennium Management LLC grew its holdings in Argan by 12.2% during the first 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 period. NewEdge Advisors LLC grew its holdings in Argan by 118.3% during 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 period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Argan by 13.4% during 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 grew its holdings in Argan by 37.3% during 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 position in Argan during the second quarter valued at approximately $286,000. Institutional investors and hedge funds own 79.43% of the company’s stock.

About Argan

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.