Argan (NYSE:AGX) Sets New 1-Year High - Here's What Happened

Key Points

• Argan, Inc. shares reached a new 52-week high of $278.41, with the stock previously closing at $266.73, reflecting a trading volume of 28,445 shares.
• The company recently reported earnings of $2.50 EPS, exceeding analyst estimates of $1.99, while also announcing a dividend increase to $0.50 per share.
• Analysts have provided mixed ratings for Argan, with one "Buy," four "Hold," and an average price target of $220.25.

Argan, Inc. (NYSE:AGX - Get Free Report) shares hit a new 52-week high on Monday . The company traded as high as $278.41 and last traded at $277.33, with a volume of 28445 shares changing hands. The stock had previously closed at $266.73.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the stock. Lake Street Capital raised 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. Wall Street Zen upgraded 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 issued a "neutral" rating and a $220.00 price objective on the stock. Finally, Glj Research began coverage on shares of Argan in a report on Monday, September 22nd. They issued a "hold" rating and a $251.00 price objective on the stock. One research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $220.25.

Argan Stock Performance

The stock's 50-day moving average is $232.58 and its 200 day moving average is $196.10. The stock has a market capitalization of $3.76 billion, a PE ratio of 32.76 and a beta of 0.62.

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

Argan Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Thursday, October 23rd will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, October 23rd. This is an increase from Argan's previous quarterly dividend of $0.38. Argan's payout ratio is 18.03%.

Insider Activity at Argan

In other Argan news, Director James W. Quinn sold 11,897 shares of the firm's stock in a transaction on Friday, September 19th. The shares were sold at an average price of $260.73, for a total transaction of $3,101,904.81. Following the transaction, the director directly owned 4,660 shares of the company's stock, valued at approximately $1,215,001.80. This trade represents a 71.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Peter W. Getsinger sold 2,609 shares of the firm's stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $239.68, for a total transaction of $625,325.12. Following the transaction, the director directly owned 12,896 shares in the company, valued at $3,090,913.28. The trade was a 16.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 45,781 shares of company stock worth $11,632,183 in the last three months. Company insiders own 6.69% of the company's stock.

Institutional Trading of Argan

Several hedge funds and other institutional investors have recently made changes to their positions in AGX. Ameritas Investment Partners Inc. grew its holdings in Argan by 6.5% in the second quarter. Ameritas Investment Partners Inc. now owns 1,354 shares of the construction company's stock valued at $299,000 after purchasing an additional 83 shares during the period. Cardinal Capital Management grew its holdings in Argan by 0.4% in the first quarter. Cardinal Capital Management now owns 31,086 shares of the construction company's stock valued at $4,078,000 after purchasing an additional 111 shares during the period. Nisa Investment Advisors LLC grew its holdings in Argan by 12.7% in the first quarter. Nisa Investment Advisors LLC now owns 1,059 shares of the construction company's stock valued at $139,000 after purchasing an additional 119 shares during the period. Meritage Portfolio Management grew its holdings in Argan by 3.0% in the second quarter. Meritage Portfolio Management now owns 5,277 shares of the construction company's stock valued at $1,163,000 after purchasing an additional 154 shares during the period. Finally, Great Lakes Advisors LLC grew its holdings in Argan by 0.8% in the first quarter. Great Lakes Advisors LLC now owns 18,599 shares of the construction company's stock valued at $2,440,000 after purchasing an additional 155 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.