Argan (NYSE:AGX) Director Sells $1,911,474.27 in Stock

Key Points

• Director Peter Getsinger sold 6,493 shares of Argan stock for approximately $1.91 million, reducing his holdings by nearly 40%.
• Argan's stock price fell 3.1% to $281.28 following the insider selling, despite a strong quarterly earnings report that exceeded analyst estimates.
• The company announced an increase in its quarterly dividend from $0.38 to $0.50, signifying confidence in its financial stability.

Argan, Inc. (NYSE:AGX - Get Free Report) Director Peter Getsinger sold 6,493 shares of the firm's stock in a transaction that occurred on Monday, October 20th. The stock was sold at an average price of $294.39, for a total value of $1,911,474.27. Following the completion of the sale, the director owned 9,897 shares of the company's stock, valued at $2,913,577.83. This represents a 39.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link.

Argan Stock Down 3.1%

Shares of AGX stock traded down $8.99 during mid-day trading on Tuesday, reaching $281.28. The stock had a trading volume of 437,794 shares, compared to its average volume of 421,874. The firm's 50 day simple moving average is $249.62 and its 200 day simple moving average is $213.83. Argan, Inc. has a one year low of $101.02 and a one year high of $320.00. The firm has a market cap of $3.88 billion, a PE ratio of 33.81 and a beta of 0.64.

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

Argan Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Thursday, October 23rd will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, October 23rd. This is a boost from Argan's previous quarterly dividend of $0.38. Argan's payout ratio is currently 18.03%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on AGX shares. Wall Street Zen raised Argan from a "hold" rating to a "buy" rating in a report on Friday, September 5th. Weiss Ratings reissued a "buy (b)" rating on shares of Argan in a report on Wednesday, October 8th. Glj Research started coverage on Argan in a report on Monday, September 22nd. They issued a "hold" rating and a $251.00 target price for the company. Zacks Research raised Argan from a "hold" rating to a "strong-buy" rating in a report on Tuesday, October 14th. Finally, JPMorgan Chase & Co. raised Argan from a "neutral" rating to an "overweight" rating and increased their target price for the stock from $220.00 to $315.00 in a report on Monday, October 13th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $258.20.

Institutional Investors Weigh In On Argan

Hedge funds and other institutional investors have recently bought and sold shares of the business. Larson Financial Group LLC increased its holdings in Argan by 2,987.5% during the 1st quarter. Larson Financial Group LLC now owns 247 shares of the construction company's stock valued at $32,000 after purchasing an additional 239 shares in the last quarter. Mark Sheptoff Financial Planning LLC acquired a new stake in shares of Argan in the 2nd quarter valued at $44,000. IFP Advisors Inc acquired a new stake in shares of Argan in the 2nd quarter valued at $71,000. EverSource Wealth Advisors LLC increased its stake in shares of Argan by 1,116.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 365 shares of the construction company's stock valued at $80,000 after buying an additional 335 shares during the period. Finally, HM Payson & Co. increased its stake in shares of Argan by 322.2% in the 3rd quarter. HM Payson & Co. now owns 380 shares of the construction company's stock valued at $103,000 after buying an additional 290 shares during the period. 79.43% of the stock is owned by institutional investors and hedge funds.

About Argan

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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