Argan (NYSE:AGX) Trading Down 5.2% - Here's What Happened

Key Points

• Argan, Inc. shares fell by 5.2% to $226.54 during mid-day trading with a significant drop in volume, reflecting a 71% decline from the average session volume.
• Analyst ratings have shifted with Lake Street Capital raising their price target to $236 and issuing a "buy" rating, while Kepler Capital Markets downgraded their rating to "hold."
• Argan announced a quarterly dividend of $0.375 per share, representing an annualized yield of 0.7%, with a payout ratio of 21.04%.

Argan, Inc. (NYSE:AGX - Get Free Report) was down 5.2% during mid-day trading on Monday . The stock traded as low as $226.78 and last traded at $226.54. Approximately 126,193 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 439,870 shares. The stock had previously closed at $239.02.

Analyst Ratings Changes

Several analysts have recently weighed in on AGX shares. Kepler Capital Markets downgraded Argan from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 28th. Wall Street Zen downgraded shares of Argan from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Lake Street Capital lifted their price target on shares of Argan from $150.00 to $236.00 and gave the company a "buy" rating in a research note on Thursday, June 5th. Finally, JPMorgan Chase & Co. initiated coverage on Argan in a research report on Monday, July 21st. They set a "neutral" rating and a $220.00 target price for the company. Four investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $202.00.

Argan Trading Down 0.5%

The business's 50-day moving average price is $218.80 and its 200-day moving average price is $174.36. The stock has a market cap of $3.05 billion, a PE ratio of 31.34 and a beta of 0.59.

Argan (NYSE:AGX - Get Free Report) last posted its quarterly earnings data 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. Argan had a return on equity of 29.61% and a net margin of 11.00%. The firm had revenue of $193.66 million during the quarter, compared to analysts' expectations of $193.75 million. During the same quarter last year, the firm earned $0.58 EPS. The business's quarterly revenue was up 22.8% on a year-over-year basis.

Argan Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 23rd were paid a $0.375 dividend. The ex-dividend date was Wednesday, July 23rd. This represents a $1.50 dividend on an annualized basis and a yield of 0.7%. Argan's dividend payout ratio (DPR) is 21.04%.

Insider Activity at Argan

In other news, Director John Ronald Jr. Jeffrey sold 2,621 shares of the business's stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $235.63, for a total transaction of $617,586.23. Following the sale, the director directly owned 9,254 shares of the company's stock, valued at $2,180,520.02. The trade was a 22.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 value of $1,225,000.00. Following the completion of the transaction, the chief executive officer owned 14,506 shares of the company's stock, valued at $3,553,970. This trade represents a 25.63% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 96,564 shares of company stock worth $21,046,366 in the last 90 days. 6.69% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Ameritas Investment Partners Inc. raised its position in shares of Argan by 6.5% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 1,354 shares of the construction company's stock worth $299,000 after purchasing an additional 83 shares during the last quarter. Cardinal Capital Management lifted its holdings in Argan by 0.4% in the 1st quarter. Cardinal Capital Management now owns 31,086 shares of the construction company's stock valued at $4,078,000 after purchasing an additional 111 shares in the last quarter. Nisa Investment Advisors LLC lifted its holdings in Argan by 12.7% in the 1st quarter. Nisa Investment Advisors LLC now owns 1,059 shares of the construction company's stock valued at $139,000 after purchasing an additional 119 shares in the last quarter. Cerity Partners LLC boosted its position in Argan by 3.7% during the fourth quarter. Cerity Partners LLC now owns 4,042 shares of the construction company's stock worth $545,000 after acquiring an additional 144 shares during the last quarter. Finally, Meritage Portfolio Management grew its stake in Argan by 3.0% during the 2nd quarter. Meritage Portfolio Management now owns 5,277 shares of the construction company's stock valued at $1,163,000 after acquiring an additional 154 shares in the last quarter. 79.43% of the stock is currently owned by institutional investors and hedge funds.

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.