Argan (NYSE:AGX) Trading 4.3% Higher - Still a Buy?

Key Points

• Argan, Inc.'s stock rose 4.3% on Friday, closing at $234.07, although trading volume was significantly lower than average.
• The company reported impressive earnings, with $1.60 EPS for the quarter, exceeding estimates by $0.51, and a 22.8% revenue increase year-on-year.
• Argan announced a quarterly dividend of $0.375, scheduled for payment on July 31st, representing a yield of 0.64%.
• Recent insider transactions revealed significant sales by directors, with one director's ownership decreasing by 70.73% after selling 40,000 shares.

Argan, Inc. (NYSE:AGX - Get Free Report)'s stock price was up 4.3% on Friday . The company traded as high as $239.89 and last traded at $234.07. Approximately 45,773 shares changed hands during trading, a decline of 90% from the average daily volume of 436,794 shares. The stock had previously closed at $224.37.

Analyst Upgrades and Downgrades

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

Argan Stock Performance

The stock has a market cap of $3.24 billion, a P/E ratio of 33.37 and a beta of 0.54. The stock has a 50-day moving average price of $212.70 and a 200-day moving average price of $168.12.

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

Argan Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 31st. Stockholders of record on Wednesday, July 23rd will be paid a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a dividend yield of 0.63%. The ex-dividend date is Wednesday, July 23rd. Argan's dividend payout ratio (DPR) is presently 21.04%.

Insider Activity

In other news, Director Cynthia Flanders sold 15,000 shares of the business's stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $220.47, for a total transaction of $3,307,050.00. Following the transaction, the director directly owned 33,428 shares of the company's stock, valued at approximately $7,369,871.16. The trade was a 30.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Peter W. Getsinger sold 3,456 shares of the business's stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $212.01, for a total value of $732,706.56. Following the transaction, the director directly owned 14,895 shares in the company, valued at $3,157,888.95. This trade represents a 18.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 85,404 shares of company stock valued at $18,221,387. 6.69% of the stock is owned by insiders.

Hedge Funds Weigh In On Argan

Several hedge funds have recently made changes to their positions in AGX. Larson Financial Group LLC boosted its position in shares of Argan by 2,987.5% during the first quarter. Larson Financial Group LLC now owns 247 shares of the construction company's stock valued at $32,000 after purchasing an additional 239 shares in the last quarter. McIlrath & Eck LLC lifted its holdings in shares of Argan by 419.4% during the fourth quarter. McIlrath & Eck LLC now owns 374 shares of the construction company's stock valued at $51,000 after purchasing an additional 302 shares in the last quarter. Federated Hermes Inc. lifted its holdings in shares of Argan by 1,123.5% during the fourth quarter. Federated Hermes Inc. now owns 416 shares of the construction company's stock valued at $57,000 after purchasing an additional 382 shares in the last quarter. IFP Advisors Inc bought a new position in shares of Argan during the second quarter valued at $71,000. Finally, State of Wyoming purchased a new stake in Argan during the first quarter valued at $109,000. 79.43% of the stock is owned by hedge funds and other institutional investors.

Argan Company Profile

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.