Argan, Inc. (NYSE:AGX) Raises Dividend to $0.50 Per Share

Key Points

• Argan, Inc. has announced a quarterly dividend increase to $0.50 per share, a 33.3% increase from the previous dividend of $0.38.
• The company's earnings report revealed an earnings per share (EPS) of $2.50, exceeding analyst expectations of $1.99, with a revenue of $237.74 million.
• Analysts have mixed opinions on the stock, with a consensus rating of "Hold" and target prices ranging from $210.00 to $260.00.

Argan, Inc. (NYSE:AGX - Get Free Report) announced a quarterly dividend on Wednesday, September 10th, RTT News reports. Investors of record on Thursday, October 23rd will be given a dividend of 0.50 per share by the construction company on Friday, October 31st. This represents a c) annualized dividend and a yield of 0.9%. This is a 33.3% increase from Argan's previous quarterly dividend of $0.38.

Argan has a payout ratio of 20.5% indicating that its dividend is sufficiently covered by earnings.

Argan Stock Performance

AGX traded up $8.62 on Wednesday, hitting $226.03. 475,679 shares of the company were exchanged, compared to its average volume of 375,406. Argan has a 12 month low of $86.98 and a 12 month high of $253.79. The company has a market cap of $3.12 billion, a PE ratio of 27.17 and a beta of 0.62. The stock's fifty day moving average is $222.70 and its 200-day moving average is $184.16.

Argan (NYSE:AGX - Get Free Report) last released its earnings results on Thursday, September 4th. The construction company reported $2.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.99 by $0.51. Argan had a return on equity of 32.61% and a net margin of 12.73%.The business had revenue of $237.74 million for the quarter, compared to analyst estimates of $243.97 million. During the same quarter in the prior year, the company posted $1.31 earnings per share. Argan's revenue was up 4.7% on a year-over-year basis.

Wall Street Analyst Weigh In

Several analysts recently issued reports on AGX shares. JPMorgan Chase & Co. initiated coverage on Argan in a report on Monday, July 21st. They set a "neutral" rating and a $220.00 target price on the stock. Wall Street Zen upgraded Argan from a "hold" rating to a "buy" rating in a research note on Friday, September 5th. Lake Street Capital upped their price objective on Argan from $236.00 to $260.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Finally, Kepler Capital Markets lowered Argan from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 28th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $210.00.

Argan Company Profile

Argan, Inc, through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The company operates through Power Services, Industrial Services, and Telecom Services segments. The Power Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 18 gigawatts of power-generating capacity.

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