Argan (NYSE:AGX) Director Peter Getsinger Sells 2,000 Shares

Key Points

• Director selling: Argan Director Peter Getsinger sold 2,000 shares at an average price of $699, totaling about $1.4 million. The sale reduced his position by 29.07% and was disclosed in an SEC filing.
• Strong quarterly results: Argan reported quarterly EPS of $3.24, beating estimates by $0.93, on revenue of $290.95 million, also above expectations. Revenue rose 50.2% year over year, and the company posted a net margin of 15.48%.
• Stock and shareholder actions: Shares rose 4.3% to $720.28, near the 12-month high of $779.00. Argan also announced a $0.50 quarterly dividend and a $200 million share repurchase program.

Argan, Inc. (NYSE:AGX - Get Free Report) Director Peter Getsinger sold 2,000 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $699.00, for a total value of $1,398,000.00. Following the sale, the director owned 4,880 shares of the company's stock, valued at $3,411,120. This trade represents a 29.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

Argan Stock Up 4.3%

NYSE:AGX traded up $29.89 during midday trading on Wednesday, reaching $720.28. The stock had a trading volume of 317,397 shares, compared to its average volume of 407,867. The firm has a fifty day simple moving average of $650.54 and a two-hundred day simple moving average of $482.75. Argan, Inc. has a 12-month low of $193.82 and a 12-month high of $779.00. The stock has a market cap of $10.10 billion, a P/E ratio of 63.29 and a beta of 0.59.

Argan (NYSE:AGX - Get Free Report) last announced 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. Argan had a net margin of 15.48% and a return on equity of 36.89%. The company had revenue of $290.95 million during the quarter, compared to the consensus estimate of $256.03 million. During the same quarter in the prior year, the firm earned $1.60 EPS. Argan's quarterly revenue was up 50.2% on a year-over-year basis. On average, sell-side analysts anticipate that Argan, Inc. will post 12.6 earnings per share for the current fiscal year.

Argan Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 23rd will be given a dividend of $0.50 per share. The ex-dividend date is Thursday, July 23rd. This represents a $2.00 annualized dividend and a yield of 0.3%. Argan's payout ratio is presently 17.57%.

Argan declared that its Board of Directors has initiated a share repurchase program on Wednesday, April 8th that allows the company to buyback $200.00 million in shares. This buyback authorization allows the construction company to repurchase up to 2.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on AGX. Weiss Ratings reiterated a "buy (b)" rating on shares of Argan in a research report on Monday, April 6th. Lake Street Capital upped their target price on shares of Argan from $375.00 to $600.00 and gave the company a "hold" rating in a report on Friday, June 5th. JPMorgan Chase & Co. raised Argan from a "neutral" rating to an "overweight" rating and set a $550.00 price objective for the company in a research report on Friday, March 27th. The Goldman Sachs Group boosted their target price on shares of Argan from $399.00 to $518.00 and gave the company a "buy" rating in a report on Friday, March 27th. Finally, Freedom Capital upgraded Argan to a "hold" rating in a research note on Tuesday, March 10th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $470.40.

Key Argan News

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

Hedge Funds Weigh In On Argan

A number of institutional investors have recently added to or reduced their stakes in the company. Maverick Capital Ltd. acquired a new stake in shares of Argan during the fourth quarter valued at about $137,503,000. First Trust Advisors LP boosted its holdings in Argan by 69.8% in the third quarter. First Trust Advisors LP now owns 559,466 shares of the construction company's stock valued at $151,084,000 after purchasing an additional 230,073 shares during the last quarter. Balyasny Asset Management L.P. grew its stake 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 valued at $55,862,000 after purchasing an additional 159,149 shares in the last quarter. Invesco Ltd. raised its position in shares of Argan by 172.5% in the 2nd quarter. Invesco Ltd. now owns 229,893 shares of the construction company's stock valued at $50,687,000 after purchasing an additional 145,516 shares in the last quarter. Finally, TD Asset Management Inc purchased a new position in shares of Argan during the 3rd quarter valued at approximately $35,629,000. Institutional investors and hedge funds 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.

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