Argan (NYSE:AGX) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Argan to “Hold” from “Buy.” Other analysts have also become more cautious, although the overall consensus remains “Moderate Buy” with an average price target of $470.40.
• Argan shares opened at $504.36, down 2.4%, and remain well below their 52-week high of $805.75. The stock trades at a price-to-earnings ratio of 44.32.
• The company reported strong quarterly results, with earnings of $3.24 per share versus the $2.31 consensus estimate and revenue up 50.2% year over year to $290.95 million. However, insiders sold approximately $87.6 million of stock over the past 90 days.

Argan (NYSE:AGX - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

A number of other research analysts also recently commented on AGX. Lake Street Capital increased their target price on shares of Argan from $375.00 to $600.00 and gave the company a "hold" rating in a research report on Friday, June 5th. Weiss Ratings downgraded shares of Argan from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Finally, Zacks Research lowered Argan from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $470.40.

Argan Stock Down 2.4%

Shares of AGX opened at $504.36 on Friday. The stock has a 50 day moving average price of $633.25 and a 200 day moving average price of $579.65. The company has a market capitalization of $7.07 billion, a price-to-earnings ratio of 44.32 and a beta of 0.61. Argan has a 52-week low of $197.00 and a 52-week high of $805.75.

Argan (NYSE:AGX - Get Free Report) last announced its quarterly earnings results on Thursday, June 4th. The construction company reported $3.24 EPS for the quarter, beating the consensus estimate of $2.31 by $0.93. The company had revenue of $290.95 million for the quarter, compared to analyst estimates of $256.03 million. Argan had a net margin of 15.48% and a return on equity of 36.89%. The firm's revenue was up 50.2% on a year-over-year basis. During the same period in the prior year, the firm posted $1.60 earnings per share. On average, equities analysts anticipate that Argan will post 12.6 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Peter W. Getsinger sold 4,728 shares of Argan stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $708.65, for a total value of $3,350,497.20. Following the transaction, the director directly owned 6,880 shares in the company, valued at $4,875,512. This trade represents a 40.73% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Cynthia Flanders sold 2,596 shares of the business's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $666.31, for a total transaction of $1,729,740.76. Following the completion of the transaction, the director directly owned 23,144 shares in the company, valued at $15,421,078.64. This represents a 10.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 127,973 shares of company stock valued at $87,554,828. 2.99% of the stock is owned by company insiders.

Institutional Trading of Argan

Several hedge funds have recently modified their holdings of the business. Millennium Management LLC grew its stake in shares of Argan by 12.2% during the 1st quarter. Millennium Management LLC now owns 117,805 shares of the construction company's stock worth $15,452,000 after purchasing an additional 12,854 shares during the period. NewEdge Advisors LLC lifted its stake in shares of Argan by 118.3% in the first quarter. NewEdge Advisors LLC now owns 5,316 shares of the construction company's stock valued at $697,000 after purchasing an additional 2,881 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Argan by 13.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 35,567 shares of the construction company's stock worth $4,665,000 after buying an additional 4,196 shares in the last quarter. Intech Investment Management LLC boosted its holdings in Argan by 37.3% during the first quarter. Intech Investment Management LLC now owns 8,985 shares of the construction company's stock worth $1,179,000 after buying an additional 2,442 shares in the last quarter. Finally, Hsbc Holdings PLC acquired a new position in Argan during the second quarter worth about $286,000. 79.43% of the stock is owned by institutional investors and hedge funds.

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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