Argan (NYSE:AGX) Stock Price Down 8.8% Following Insider Selling

Key Points

• Argan, Inc. (NYSE:AGX) shares dropped 8.8% after several insiders, including the Director and CFO, sold portions of their stock, significantly decreasing their holdings.
• Analysts' ratings have shifted, with JPMorgan Chase & Co. initiating coverage with a "neutral" rating and a price target of $220, while Kepler Capital Markets downgraded the stock from "strong-buy" to "hold."
• Argan's quarterly earnings exceeded expectations, reporting $1.60 EPS against a consensus estimate of $1.09, but the stock's recent performance highlights increasing investor concern following insider sales.

Argan, Inc. (NYSE:AGX - Get Free Report)'s stock price was down 8.8% during trading on Friday after an insider sold shares in the company. The company traded as low as $215.69 and last traded at $223.48. Approximately 216,883 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 439,805 shares. The stock had previously closed at $244.98.

Specifically, CEO Charles Edwin Iv Collins sold 5,000 shares of the firm's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $245.00, for a total transaction of $1,225,000.00. Following the completion of the transaction, the chief executive officer directly owned 14,506 shares in the company, valued at $3,553,970. This trade represents a 25.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Charles Edwin Iv Collins sold 1,500 shares of the business's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $241.50, for a total value of $362,250.00. Following the completion of the transaction, the chief executive officer owned 19,506 shares in the company, valued at $4,710,699. This trade represents a 7.14% decrease in their position. The disclosure for this sale can be found here. In related news, Director John Ronald Jr. Jeffrey sold 2,621 shares of the company's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $235.63, for a total value of $617,586.23. Following the sale, the director owned 9,254 shares of the company's stock, valued at approximately $2,180,520.02. This represents a 22.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on AGX. Lake Street Capital increased their price target on Argan from $150.00 to $236.00 and gave the company a "buy" rating in a report on Thursday, June 5th. JPMorgan Chase & Co. started coverage on shares of Argan in a research note on Monday, July 21st. They set a "neutral" rating and a $220.00 price objective on the stock. Finally, Kepler Capital Markets lowered shares of Argan from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 28th. Four research analysts have rated the stock with a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $202.00.

Argan Stock Up 4.4%

The stock has a market cap of $3.18 billion, a price-to-earnings ratio of 32.70 and a beta of 0.59. The business's 50 day simple moving average is $216.04 and its 200 day simple moving average is $170.05.

Argan (NYSE:AGX - Get Free Report) last posted its earnings results on Wednesday, June 4th. The construction company reported $1.60 EPS for the quarter, topping the consensus estimate of $1.09 by $0.51. The business had revenue of $193.66 million for the quarter, compared to the consensus estimate of $193.75 million. Argan had a net margin of 11.00% and a return on equity of 29.61%. The firm's revenue was up 22.8% compared to the same quarter last year. During the same period last year, the company earned $0.58 EPS.

Argan Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 23rd were issued a $0.375 dividend. The ex-dividend date was Wednesday, July 23rd. This represents a $1.50 annualized dividend and a yield of 0.6%. Argan's payout ratio is 21.04%.

Hedge Funds Weigh In On Argan

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp grew its stake in shares of Argan by 2.2% during the 2nd quarter. Bank of New York Mellon Corp now owns 174,533 shares of the construction company's stock valued at $38,481,000 after purchasing an additional 3,762 shares during the period. AdvisorShares Investments LLC bought a new stake in shares of Argan in the 2nd quarter worth about $463,000. World Investment Advisors purchased a new position in Argan during the second quarter worth $220,000. Flagship Harbor Advisors LLC purchased a new position in Argan during the second quarter worth $289,000. Finally, Ashton Thomas Private Wealth LLC purchased a new stake in Argan in the second quarter worth $258,000. 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.