Argan (NYSE:AGX) Issues Quarterly Earnings Results, Beats Estimates By $0.97 EPS

Key Points

• Argan beat quarterly expectations, reporting EPS of $3.24 versus the $2.27 consensus and revenue of $290.95 million versus expectations of $256.03 million. The company also posted a strong return on equity of 33.62%.
• The stock rose after the results, trading up 0.5% to $689.63, with a market cap of $9.62 billion. Argan’s shares have ranged from a 52-week low of $193.82 to a high of $748.50.
• Shareholder returns and capital actions continue, as Argan paid a $0.50 quarterly dividend and has authorized a $200 million share buyback program. The article also notes recent insider selling, including moves by the CEO and a director.

Argan (NYSE:AGX - Get Free Report) released its quarterly earnings data on Thursday. The construction company reported $3.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.97, FiscalAI reports. The business had revenue of $290.95 million for the quarter, compared to analysts' expectations of $256.03 million. Argan had a return on equity of 33.62% and a net margin of 14.59%.

Argan Trading Up 0.5%

NYSE AGX traded up $3.26 on Thursday, hitting $689.63. 352,885 shares of the company traded hands, compared to its average volume of 402,945. The company has a market capitalization of $9.62 billion, a price-to-earnings ratio of 70.80 and a beta of 0.58. The business's 50 day moving average price is $626.20 and its 200-day moving average price is $464.28. Argan has a 52-week low of $193.82 and a 52-week high of $748.50.

Argan Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Wednesday, April 22nd were given a dividend of $0.50 per share. The ex-dividend date was Wednesday, April 22nd. This represents a $2.00 annualized dividend and a yield of 0.3%. Argan's payout ratio is 20.53%.

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

Insider Activity at Argan

In related news, CEO Charles Edwin Iv Collins sold 11,068 shares of Argan stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $621.61, for a total transaction of $6,879,979.48. Following the transaction, the chief executive officer directly owned 30,320 shares in the company, valued at approximately $18,847,215.20. The trade was a 26.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Peter W. Getsinger sold 3,000 shares of Argan stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $628.36, for a total value of $1,885,080.00. Following the transaction, the director owned 6,847 shares in the company, valued at $4,302,380.92. This trade represents a 30.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 64,543 shares of company stock valued at $39,054,956 in the last ninety days. Corporate insiders own 6.69% of the company's stock.

Institutional Investors Weigh In On Argan

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Hsbc Holdings PLC bought a new stake in Argan during the fourth quarter valued at about $203,000. Mercer Global Advisors Inc. ADV grew its position in shares of Argan by 1,116.4% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 18,587 shares of the construction company's stock valued at $5,824,000 after purchasing an additional 17,059 shares in the last quarter. NewEdge Advisors LLC grew its position in shares of Argan by 25.1% during the fourth quarter. NewEdge Advisors LLC now owns 6,677 shares of the construction company's stock valued at $2,092,000 after purchasing an additional 1,338 shares in the last quarter. Crusonia Wealth Advisors LLC purchased a new position in shares of Argan during the fourth quarter valued at about $316,000. Finally, XTX Topco Ltd grew its position in shares of Argan by 90.0% during the fourth quarter. XTX Topco Ltd now owns 2,696 shares of the construction company's stock valued at $845,000 after purchasing an additional 1,277 shares in the last quarter. 79.43% of the stock is owned by institutional investors.

Analysts Set New Price Targets

AGX has been the topic of several analyst reports. Wall Street Zen raised Argan from a "hold" rating to a "buy" rating in a research report on Saturday, March 28th. The Goldman Sachs Group upped their price objective on Argan from $399.00 to $518.00 and gave the company a "buy" rating in a research report on Friday, March 27th. Zacks Research cut Argan from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 26th. JPMorgan Chase & Co. raised Argan from a "neutral" rating to an "overweight" rating and set a $550.00 price objective on the stock in a research report on Friday, March 27th. Finally, Freedom Capital raised Argan to a "hold" rating in a research report on Tuesday, March 10th. Four research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $425.40.

About Argan

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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