Argan (NYSE:AGX) Trading Up 8% - Should You Buy?

Key Points

• Argan, Inc. (NYSE:AGX)'s share price rose by 8% during mid-day trading, reaching a last traded price of $234.71, despite a significant decline in trading volume.
• Analysts have mixed sentiments on Argan, with Kepler Capital Markets downgrading the stock to "hold," while Lake Street Capital upgraded it and increased the price objective to $260.00.
• In its recent quarterly earnings report, Argan beat expectations with an EPS of $2.50 but reported revenue that fell short of consensus estimates, generating $237.74 million.

Argan, Inc. (NYSE:AGX - Get Free Report)'s share price was up 8% during mid-day trading on Wednesday . The stock traded as high as $230.70 and last traded at $234.71. Approximately 87,152 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 432,538 shares. The stock had previously closed at $217.41.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on AGX shares. Kepler Capital Markets cut shares of Argan from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 28th. JPMorgan Chase & Co. initiated coverage on Argan in a research report on Monday, July 21st. They set a "neutral" rating and a $220.00 price objective for the company. Wall Street Zen upgraded Argan from a "hold" rating to a "buy" rating in a report on Friday, September 5th. Finally, Lake Street Capital lifted their price objective on Argan from $236.00 to $260.00 and gave the stock a "buy" rating in a report on Friday, September 5th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Argan has a consensus rating of "Hold" and an average target price of $210.00.

Argan Stock Performance

The company has a fifty day moving average of $222.29 and a two-hundred day moving average of $183.87. The company has a market cap of $3.14 billion, a PE ratio of 27.34 and a beta of 0.62.

Argan (NYSE:AGX - Get Free Report) last announced its quarterly earnings data on Thursday, September 4th. The construction company reported $2.50 EPS for the quarter, beating the consensus estimate of $1.99 by $0.51. The company had revenue of $237.74 million for the quarter, compared to the consensus estimate of $243.97 million. Argan had a return on equity of 32.61% and a net margin of 12.73%.Argan's quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.31 EPS.

Argan Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Wednesday, July 23rd were given a $0.375 dividend. This represents a $1.50 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Wednesday, July 23rd. Argan's dividend payout ratio is 18.03%.

Insider Buying and Selling at Argan

In other news, Director John Ronald Jr. Jeffrey sold 2,621 shares of the stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $235.63, for a total transaction of $617,586.23. Following the transaction, 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 link. Also, Director Cynthia Flanders sold 15,000 shares of the stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $220.47, for a total value of $3,307,050.00. Following the transaction, the director directly owned 33,428 shares in the company, valued at $7,369,871.16. The trade was a 30.97% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 42,836 shares of company stock worth $9,687,716. Insiders own 6.69% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Larson Financial Group LLC grew its stake in Argan by 2,987.5% during the 1st 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 last quarter. Mark Sheptoff Financial Planning LLC acquired a new position in Argan during the second quarter worth $44,000. McIlrath & Eck LLC raised its holdings 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 purchasing an additional 302 shares during the last quarter. IFP Advisors Inc acquired a new position in Argan during the second quarter worth $71,000. Finally, EverSource Wealth Advisors LLC raised its holdings in Argan by 1,116.7% during the second quarter. EverSource Wealth Advisors LLC now owns 365 shares of the construction company's stock worth $80,000 after purchasing an additional 335 shares during the last quarter. 79.43% of the stock is 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.

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