Argan (NYSE:AGX) Upgraded by Zacks Research to “Strong-Buy” Rating

Zacks Research upgraded shares of Argan (NYSE:AGX) from a hold rating to a strong-buy rating in a report published on Wednesday,Zacks.com reports.

A number of other research analysts have also recently issued reports on the stock. 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 report on Friday, March 27th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Argan in a report on Monday, April 6th. Lake Street Capital upped their target price on Argan from $375.00 to $600.00 and gave the company a “hold” rating in a report on Friday, June 5th. The Goldman Sachs Group lifted their price target on Argan from $399.00 to $518.00 and gave the stock a “buy” rating in a research note on Friday, March 27th. Finally, Wall Street Zen upgraded shares of Argan from a “hold” rating to a “buy” rating in a research report on Saturday, March 28th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $470.40.

Argan Trading Up 2.2%

Shares of NYSE AGX opened at $748.66 on Wednesday. The stock has a market cap of $10.50 billion, a P/E ratio of 65.79 and a beta of 0.58. The stock has a 50 day moving average of $671.54 and a two-hundred day moving average of $501.64. Argan has a twelve month low of $196.90 and a twelve month high of $791.38.

Argan (NYSE:AGX) last issued its quarterly earnings data on Thursday, June 4th. The construction company reported $3.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.31 by $0.93. The company had revenue of $290.95 million for 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%. Argan’s revenue for the quarter was up 50.2% on a year-over-year basis. During the same period last year, the firm posted $1.60 EPS. As a group, research analysts predict that Argan will post 12.6 earnings per share for the current year.

Argan Announces Dividend

The business also recently disclosed 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. The ex-dividend date of this dividend is Thursday, July 23rd. This represents a $2.00 annualized dividend and a dividend yield of 0.3%. Argan’s payout ratio is currently 17.57%.

Argan announced that its Board of Directors has initiated a share buyback program on Wednesday, April 8th that permits the company to buyback $200.00 million in shares. This buyback authorization permits the construction company to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other Argan news, Chairman William F. Griffin, Jr. sold 20,000 shares of the business’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $760.43, for a total transaction of $15,208,600.00. Following the transaction, the chairman owned 40,976 shares in the company, valued at $31,159,379.68. The trade was a 32.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Peter W. Getsinger sold 2,000 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $699.00, for a total transaction of $1,398,000.00. Following the completion of the sale, the director directly owned 4,880 shares in the company, valued at $3,411,120. This represents a 29.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 186,800 shares of company stock valued at $123,296,561. 6.69% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Argan

Large investors have recently modified their holdings of the stock. Maverick Capital Ltd. acquired a new position in Argan in the fourth quarter worth about $137,503,000. First Trust Advisors LP raised its stake in Argan by 69.8% during the third quarter. First Trust Advisors LP now owns 559,466 shares of the construction company’s stock valued at $151,084,000 after buying an additional 230,073 shares in the last quarter. Balyasny Asset Management L.P. lifted its holdings in Argan by 168.9% during the 2nd quarter. Balyasny Asset Management L.P. now owns 253,365 shares of the construction company’s stock worth $55,862,000 after buying an additional 159,149 shares during the last quarter. Invesco Ltd. lifted its holdings in Argan by 172.5% during the 2nd quarter. Invesco Ltd. now owns 229,893 shares of the construction company’s stock worth $50,687,000 after buying an additional 145,516 shares during the last quarter. Finally, TD Asset Management Inc acquired a new position in shares of Argan in the 3rd quarter worth approximately $35,629,000. Institutional investors own 79.43% of the company’s stock.

Argan Company Profile

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.