Argan (NYSE:AGX) Hits New 1-Year High - What's Next?

Key Points

• Argan, Inc. shares hit a new 52-week high of $260.22, influenced by a strong trading volume of 233,298 shares.
• The company reported $2.50 earnings per share (EPS) for the latest quarter, exceeding analysts' estimates of $1.99 per share, while also announcing an increase in its quarterly dividend from $0.38 to $0.50.
• Analyst ratings show mixed sentiments, with one upgrade to a "buy" rating, while the consensus remains a "hold" with an average price target of $210.00.

Argan, Inc. (NYSE:AGX - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $257.83 and last traded at $260.22, with a volume of 233298 shares. The stock had previously closed at $239.42.

Analyst Ratings Changes

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

Argan Stock Up 7.0%

The company has a market cap of $3.54 billion, a PE ratio of 30.79 and a beta of 0.62. The stock's 50 day moving average is $225.57 and its 200-day moving average is $187.89.

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

Argan Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Thursday, October 23rd will be paid a $0.50 dividend. This is an increase from Argan's previous quarterly dividend of $0.38. This represents a $2.00 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, October 23rd. Argan's payout ratio is currently 24.04%.

Insiders Place Their Bets

In other news, Director Cynthia Flanders sold 2,000 shares of the stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $234.56, for a total value of $469,120.00. Following the sale, the director owned 31,428 shares of the company's stock, valued at approximately $7,371,751.68. This represents a 5.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Peter W. Getsinger sold 2,609 shares of the stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $239.68, for a total transaction of $625,325.12. Following the completion of the sale, the director directly owned 12,896 shares in the company, valued at approximately $3,090,913.28. This represents a 16.83% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 30,445 shares of company stock valued at $7,005,991. 6.69% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in AGX. Larson Financial Group LLC increased its stake in Argan by 2,987.5% in the 1st quarter. Larson Financial Group LLC now owns 247 shares of the construction company's stock worth $32,000 after buying an additional 239 shares during the period. Mark Sheptoff Financial Planning LLC purchased a new position in Argan in the 2nd quarter worth about $44,000. McIlrath & Eck LLC increased its stake in Argan by 419.4% in the 4th quarter. McIlrath & Eck LLC now owns 374 shares of the construction company's stock worth $51,000 after buying an additional 302 shares during the period. IFP Advisors Inc purchased a new position in Argan in the 2nd quarter worth about $71,000. Finally, EverSource Wealth Advisors LLC increased its stake in Argan by 1,116.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 365 shares of the construction company's stock worth $80,000 after buying an additional 335 shares during the period. Hedge funds and other institutional investors own 79.43% of the company's stock.

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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