Argan (NYSE:AGX) Director Sells $220,703.00 in Stock

Key Points

• Director Alexander Lisa Larroque sold 350 shares at an average price of $630.58 for a total of $220,703, a transaction that reduced their position by 50% and was disclosed in an SEC Form 4 filing.
• Argan posted a strong quarter with $3.47 EPS vs. $1.99 expected and revenue of $262.05M (up 12.7% year-over-year), and reported healthy profitability metrics including a 14.59% net margin and 33.62% ROE.
• The company declared a quarterly dividend of $0.50 (annualized $2.00, ~0.3% yield) and approved a $200M share buyback (about 2.5% of shares), while the stock jumped ~6.7% to $672.07 amid analyst price-target increases and a "Moderate Buy" consensus.

Argan, Inc. (NYSE:AGX - Get Free Report) Director Alexander Lisa Larroque sold 350 shares of the firm's stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $630.58, for a total transaction of $220,703.00. Following the completion of the sale, the director directly owned 350 shares in the company, valued at approximately $220,703. This trade represents a 50.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Argan Trading Up 6.7%

NYSE:AGX traded up $42.00 during mid-day trading on Thursday, hitting $672.07. The stock had a trading volume of 224,931 shares, compared to its average volume of 438,232. The stock has a 50-day simple moving average of $522.87 and a two-hundred day simple moving average of $403.12. The company has a market capitalization of $9.37 billion, a PE ratio of 69.00 and a beta of 0.46. Argan, Inc. has a twelve month low of $155.65 and a twelve month high of $683.12.

Argan (NYSE:AGX - Get Free Report) last announced its quarterly earnings results on Thursday, March 26th. The construction company reported $3.47 EPS for the quarter, beating the consensus estimate of $1.99 by $1.48. The company had revenue of $262.05 million for the quarter, compared to analyst estimates of $255.32 million. Argan had a net margin of 14.59% and a return on equity of 33.62%. The firm's revenue was up 12.7% on a year-over-year basis. During the same period in the prior year, the firm posted $2.22 earnings per share. Sell-side analysts predict that Argan, Inc. will post 11.44 EPS for the current fiscal year.

Argan Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Wednesday, April 22nd will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 0.3%. The ex-dividend date is Wednesday, April 22nd. Argan's dividend payout ratio is currently 20.53%.

Argan declared that its Board of Directors has approved a stock buyback plan on Wednesday, April 8th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the construction company to repurchase up to 2.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages have commented on AGX. The Goldman Sachs Group increased their price target on shares of Argan from $399.00 to $518.00 and gave the company a "buy" rating in a research note on Friday, March 27th. Weiss Ratings reiterated a "buy (b)" rating on shares of Argan in a research note on Monday, April 6th. JPMorgan Chase & Co. upgraded shares of Argan from a "neutral" rating to an "overweight" rating and set a $550.00 price target on the stock in a research note on Friday, March 27th. Freedom Capital upgraded shares of Argan to a "hold" rating in a research note on Tuesday, March 10th. Finally, Lake Street Capital increased their price target on shares of Argan from $325.00 to $375.00 and gave the company a "hold" rating in a research note on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $425.40.

Hedge Funds Weigh In On Argan

Hedge funds have recently modified their holdings of the business. Aster Capital Management DIFC Ltd purchased a new position in shares of Argan during the third quarter worth approximately $25,000. Danske Bank A S purchased a new position in shares of Argan during the third quarter worth approximately $27,000. Montag A & Associates Inc. purchased a new position in shares of Argan during the fourth quarter worth approximately $30,000. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Argan during the fourth quarter worth approximately $30,000. Finally, Hilton Head Capital Partners LLC purchased a new position in shares of Argan during the fourth quarter worth approximately $31,000. 79.43% of the stock is currently owned by hedge funds and other institutional investors.

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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