Argan (NYSE:AGX) Shares Up 4.3% - Here's Why

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 share price was up 4.3% during mid-day trading on Friday . The stock traded as high as $239.89 and last traded at $234.07. Approximately 45,773 shares were traded during trading, a decline of 90% from the average daily volume of 436,794 shares. The stock had previously closed at $224.37.

Analyst Ratings Changes

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

Argan Stock Up 5.5%

The business's 50 day simple moving average is $211.74 and its two-hundred day simple moving average is $167.50. The stock has a market cap of $3.23 billion, a P/E ratio of 33.18 and a beta of 0.54.

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

Argan Dividend Announcement

The firm also recently declared 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 annualized dividend and a dividend yield of 0.63%. The ex-dividend date is Wednesday, July 23rd. Argan's payout ratio is currently 21.04%.

Insider Activity

In other Argan news, Director William F. Leimkuhler sold 7,604 shares of Argan stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $222.03, for a total transaction of $1,688,316.12. Following the transaction, the director directly owned 50,636 shares of the company's stock, valued at approximately $11,242,711.08. The trade was a 13.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Rainer H. Bosselmann sold 13,728 shares of Argan stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $221.58, for a total value of $3,041,850.24. Following the transaction, the director directly owned 196,723 shares in the company, valued at $43,589,882.34. The trade was a 6.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 85,404 shares of company stock valued at $18,221,387. 6.69% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of AGX. Larson Financial Group LLC increased 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 worth $32,000 after buying an additional 239 shares during the period. McIlrath & Eck LLC raised its stake in Argan by 419.4% during the fourth quarter. McIlrath & Eck LLC now owns 374 shares of the construction company's stock worth $51,000 after buying an additional 302 shares during the last quarter. Federated Hermes Inc. raised its stake in Argan by 1,123.5% during the fourth quarter. Federated Hermes Inc. now owns 416 shares of the construction company's stock worth $57,000 after buying an additional 382 shares during the last quarter. IFP Advisors Inc bought a new position in Argan during the second quarter worth $71,000. Finally, State of Wyoming bought a new position in Argan during the first quarter worth $109,000. 79.43% of the stock is owned by institutional investors and hedge funds.

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.