Argan (NYSE:AGX) Reaches New 52-Week High - Time to Buy?

Key Points

• Argan shares hit a new 52-week high, trading as high as $743.18 and last changing hands near $733.89, extending a strong rally well above its 50-day and 200-day moving averages.
• The company recently posted better-than-expected quarterly results, with EPS of $3.47 versus $1.99 expected and revenue up 12.7% year over year, reinforcing bullish sentiment around the stock.
• Argan also boosted shareholder returns with a quarterly dividend and a $200 million stock repurchase authorization, though insider selling has been notable in recent weeks.

Shares of Argan, Inc. (NYSE:AGX - Get Free Report) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $743.18 and last traded at $733.8930, with a volume of 68282 shares trading hands. The stock had previously closed at $719.92.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Weiss Ratings reiterated a "buy (b)" rating on shares of Argan in a research note on Monday, April 6th. Freedom Capital upgraded Argan to a "hold" rating in a research note on Tuesday, March 10th. Zacks Research upgraded Argan from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, March 31st. JPMorgan Chase & Co. upgraded Argan from a "neutral" rating to an "overweight" rating and set a $550.00 price target for the company in a research note on Friday, March 27th. Finally, The Goldman Sachs Group lifted their price target on Argan from $399.00 to $518.00 and gave the company a "buy" rating in a research note on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $425.40.

Argan Stock Performance

The business has a 50 day moving average price of $563.37 and a two-hundred day moving average price of $426.94. The stock has a market cap of $10.25 billion, a PE ratio of 75.48 and a beta of 0.61.

Argan (NYSE:AGX - Get Free Report) last announced its earnings results on Thursday, March 26th. The construction company reported $3.47 earnings per share for the quarter, topping analysts' consensus estimates of $1.99 by $1.48. Argan had a return on equity of 33.62% and a net margin of 14.59%.The firm had revenue of $262.05 million for the quarter, compared to the consensus estimate of $255.32 million. During the same quarter in the previous year, the business earned $2.22 EPS. The company's revenue was up 12.7% compared to the same quarter last year. As a group, research analysts anticipate that Argan, Inc. will post 11.44 earnings per share for the current year.

Argan Announces Dividend

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

Argan declared that its board has approved a stock repurchase plan on Wednesday, April 8th that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the construction company to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In related news, Director John Ronald Jr. Jeffrey sold 4,556 shares of the company's stock in a transaction that occurred on Tuesday, March 31st. The stock was sold at an average price of $539.85, for a total value of $2,459,556.60. Following the transaction, the director owned 3,636 shares in the company, valued at approximately $1,962,894.60. This represents a 55.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO David Hibbert Watson sold 19,310 shares of the company's stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $602.11, for a total value of $11,626,744.10. Following the completion of the transaction, the chief executive officer owned 49,998 shares in the company, valued at approximately $30,104,295.78. The trade was a 27.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 64,543 shares of company stock valued at $39,054,956 in the last quarter. 6.69% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Argan

Institutional investors have recently bought and sold shares of the company. Aster Capital Management DIFC Ltd purchased a new stake in shares of Argan during the third quarter worth $25,000. Danske Bank A S purchased a new stake in shares of Argan during the third quarter worth $27,000. Montag A & Associates Inc. purchased a new stake in shares of Argan during the fourth quarter worth $30,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Argan during the fourth quarter worth $30,000. Finally, Hilton Head Capital Partners LLC purchased a new stake in shares of Argan during the fourth quarter worth $31,000. Hedge funds and other institutional investors own 79.43% of the company's stock.

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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