Argan (NYSE:AGX) Shares Down 7.4% - Time to Sell?

Key Points

• Shares fell 7.4% intraday to $405.13 on Thursday, trading about 89,746 shares—roughly 79% below the stock's average daily volume.
• Significant insider selling: insiders disposed of 54,715 shares worth about $19.8 million over the past 90 days, including two directors who cut their holdings by ~38–42%.
• Analysts' consensus is a "Hold" (three Buys, six Holds) with a consensus target of $355.20—below the current price; the company has a $5.79 billion market cap and a P/E of 48.91.

Argan, Inc. (NYSE:AGX - Get Free Report) dropped 7.4% during mid-day trading on Thursday . The company traded as low as $410.12 and last traded at $405.1330. Approximately 89,746 shares traded hands during trading, a decline of 79% from the average daily volume of 436,503 shares. The stock had previously closed at $437.48.

Analyst Upgrades and Downgrades

AGX has been the topic of a number of research reports. Zacks Research downgraded Argan from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, February 3rd. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $370.00 target price (up from $315.00) on shares of Argan in a report on Monday, December 1st. CJS Securities upgraded shares of Argan to a "hold" rating in a research report on Thursday, December 11th. Weiss Ratings reissued a "buy (b+)" rating on shares of Argan in a report on Wednesday, December 24th. Finally, Lake Street Capital lowered shares of Argan from a "buy" rating to a "hold" rating and raised their price objective for the company from $260.00 to $325.00 in a research report on Friday, December 5th. Three investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $355.20.

Argan Trading Down 4.6%

The firm has a market capitalization of $5.79 billion, a price-to-earnings ratio of 48.91 and a beta of 0.57. The stock has a fifty day moving average of $414.59 and a 200-day moving average of $343.95.

Insider Activity

In other news, Director John Ronald Jr. Jeffrey sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, January 27th. The shares were sold at an average price of $360.78, for a total transaction of $1,803,900.00. Following the sale, the director owned 8,192 shares in the company, valued at $2,955,509.76. The trade was a 37.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Cynthia Flanders sold 19,000 shares of the company's stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $386.70, for a total transaction of $7,347,300.00. Following the completion of the sale, the director owned 26,207 shares of the company's stock, valued at approximately $10,134,246.90. This trade represents a 42.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 54,715 shares of company stock valued at $19,787,260 over the last ninety days. Corporate insiders own 6.69% of the company's stock.

Hedge Funds Weigh In On Argan

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Aster Capital Management DIFC Ltd acquired a new stake in shares of Argan in the third quarter worth $25,000. Danske Bank A S acquired a new position in Argan in the 3rd quarter valued at approximately $27,000. Montag A & Associates Inc. purchased a new stake in Argan in the 4th quarter worth approximately $30,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Argan in the 4th quarter worth approximately $30,000. Finally, Hilton Head Capital Partners LLC acquired a new stake in shares of Argan during the 4th quarter valued at $31,000. 79.43% of the stock is currently owned by hedge funds and other institutional investors.

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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