Argan (NYSE:AGX) Sets New 12-Month High - Should You Buy?

Key Points

• Argan shares hit a new 52-week high, trading as high as $793.17 after closing previously at $765.46, reflecting strong recent momentum in the stock.
• The company posted better-than-expected quarterly results, with EPS of $3.24 versus $2.31 expected and revenue of $290.95 million, up 50.2% year over year.
• Analysts remain generally positive, with a Moderate Buy consensus and an average price target of $470.40, while the company also announced a quarterly dividend and a $200 million share buyback program.

Argan, Inc. (NYSE:AGX - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $793.17 and last traded at $789.45, with a volume of 219165 shares trading hands. The stock had previously closed at $765.46.

Analyst Upgrades and Downgrades

Several research firms recently commented on AGX. Freedom Capital raised Argan to a "hold" rating in a research note on Tuesday, March 10th. Lake Street Capital increased their price target on Argan from $375.00 to $600.00 and gave the stock a "hold" rating in a report on Friday, June 5th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Argan in a research report on Monday, April 6th. The Goldman Sachs Group lifted their price objective on shares of Argan from $399.00 to $518.00 and gave the company a "buy" rating in a research note on Friday, March 27th. Finally, Zacks Research raised shares of Argan from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $470.40.

Argan Stock Performance

The stock has a market cap of $11.13 billion, a PE ratio of 69.70 and a beta of 0.59. The business has a 50 day moving average price of $674.70 and a two-hundred day moving average price of $504.76.

Argan (NYSE:AGX - Get Free Report) last posted its quarterly earnings data on Thursday, June 4th. The construction company reported $3.24 earnings per share for the quarter, topping the consensus estimate of $2.31 by $0.93. 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 36.89% and a net margin of 15.48%.The business's revenue was up 50.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.60 earnings per share. As a group, research analysts anticipate that Argan, Inc. will post 12.6 earnings per share for the current year.

Argan Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, July 23rd will be issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date of this dividend is Thursday, July 23rd. Argan's payout ratio is 17.57%.

Argan declared that its Board of Directors has authorized a share buyback program on Wednesday, April 8th that authorizes the company to repurchase $200.00 million in outstanding shares. This repurchase authorization authorizes the construction company to purchase up to 2.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Insider Activity at Argan

In other Argan news, Director William F. Leimkuhler sold 8,444 shares of the business's stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $598.49, for a total value of $5,053,649.56. Following the transaction, the director directly owned 41,495 shares in the company, valued at $24,834,342.55. The trade was a 16.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Charles Edwin Iv Collins sold 11,068 shares of the firm's stock in a transaction that occurred 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 sale, the chief executive officer owned 30,320 shares of the company's stock, valued at approximately $18,847,215.20. The trade was a 26.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 186,800 shares of company stock valued at $123,296,561 in the last 90 days. 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. International Assets Investment Management LLC raised its stake in shares of Argan by 2.0% in the first quarter. International Assets Investment Management LLC now owns 775 shares of the construction company's stock valued at $443,000 after buying an additional 15 shares during the period. PNC Financial Services Group Inc. grew its stake in shares of Argan by 5.9% during the 4th quarter. PNC Financial Services Group Inc. now owns 541 shares of the construction company's stock worth $170,000 after acquiring an additional 30 shares during the period. Baader Bank Aktiengesellschaft increased its holdings in Argan by 0.6% in the 1st quarter. Baader Bank Aktiengesellschaft now owns 5,030 shares of the construction company's stock worth $2,734,000 after acquiring an additional 30 shares during the last quarter. National Bank of Canada FI raised its stake in Argan by 26.7% in the 3rd quarter. National Bank of Canada FI now owns 147 shares of the construction company's stock valued at $40,000 after acquiring an additional 31 shares during the period. Finally, Pallas Capital Advisors LLC lifted its holdings in Argan by 1.3% during the fourth quarter. Pallas Capital Advisors LLC now owns 2,564 shares of the construction company's stock valued at $803,000 after purchasing an additional 34 shares during the last quarter. Hedge funds and other institutional investors own 79.43% of the company's stock.

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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