Argan, Inc. (AGX) - What Are Researchers Saying About This Stock?

Key Points

• Analysts give Argan a “Moderate Buy” consensus across 10 brokerages, with an average 12-month price target of $509. Ratings range from sell to strong buy, including a $273 target from Piper Sandler and a $785 target from JPMorgan.
• Argan reported strong quarterly results, with EPS of $3.76 versus the $2.64 consensus and revenue of $383.98 million, up 61.5% year over year. The company also raised its quarterly dividend from $0.50 to $0.70 per share.
• AGX shares opened at $328.77, well below their one-year high of $805.75, while institutional investors own 79.43% of the stock. An insider also sold 5,716 shares, reducing his position by 69.29%.

Shares of Argan, Inc. (NYSE:AGX - Get Free Report) have received an average rating of "Moderate Buy" from the ten brokerages that are presently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation, four have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $509.00.

A number of analysts recently issued reports on AGX shares. Wall Street Zen raised Argan from a "hold" rating to a "buy" rating in a research report on Sunday, October 18th. Lake Street Capital raised Argan from a "hold" rating to a "buy" rating and set a $600.00 price target on the stock in a research report on Thursday, September 3rd. Piper Sandler started coverage on Argan in a research note on Tuesday, September 8th. They set an "underweight" rating and a $273.00 target price for the company. Weiss Ratings lowered Argan from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday. Finally, JPMorgan Chase & Co. dropped their price target on Argan from $800.00 to $785.00 and set an "overweight" rating on the stock in a research report on Tuesday, September 29th.

Argan Trading Down 0.7%

Shares of NYSE AGX opened at $328.77 on Tuesday. Argan has a one year low of $276.28 and a one year high of $805.75. The business has a 50-day moving average price of $409.92 and a two-hundred day moving average price of $516.41. The firm has a market capitalization of $4.61 billion, a PE ratio of 26.01, a PEG ratio of 2.41 and a beta of 0.56.

Argan (NYSE:AGX - Get Free Report) last issued its earnings results on Wednesday, September 2nd. The construction company reported $3.76 earnings per share for the quarter, beating analysts' consensus estimates of $2.64 by $1.12. The company had revenue of $383.98 million for the quarter, compared to the consensus estimate of $300.53 million. Argan had a return on equity of 38.51% and a net margin of 15.09%. The firm's quarterly revenue was up 61.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.50 EPS. Research analysts anticipate that Argan will post 13.72 EPS for the current year.

Argan Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Thursday, October 22nd will be paid a $0.70 dividend. The ex-dividend date is Thursday, October 22nd. This is a boost from Argan's previous quarterly dividend of $0.50. This represents a $2.80 annualized dividend and a dividend yield of 0.9%. Argan's dividend payout ratio is 22.15%.

Insiders Place Their Bets

In other news, Director John Jeffrey, Jr. sold 5,716 shares of Argan stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $579.64, for a total transaction of $3,313,222.24. Following the sale, the director owned 2,533 shares of the company's stock, valued at approximately $1,468,228.12. This trade represents a 69.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.99% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in Argan during the second quarter worth $1,764,086,000. First Trust Advisors LP increased its holdings in shares of Argan by 32.1% in the first quarter. First Trust Advisors LP now owns 791,353 shares of the construction company's stock valued at $431,010,000 after purchasing an additional 192,204 shares in the last quarter. Renaissance Technologies LLC raised its position in shares of Argan by 2.1% during the first quarter. Renaissance Technologies LLC now owns 610,899 shares of the construction company's stock worth $332,726,000 after acquiring an additional 12,300 shares during the last quarter. Maverick Capital Ltd. raised its holdings in Argan by 5.9% during the 1st quarter. Maverick Capital Ltd. now owns 464,759 shares of the construction company's stock worth $253,131,000 after purchasing an additional 25,901 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in Argan by 1.3% in the first quarter. Dimensional Fund Advisors LP now owns 397,962 shares of the construction company's stock valued at $216,728,000 after buying an additional 4,954 shares during the period. Institutional investors and hedge funds own 79.43% of the company's stock.

Argan Company Profile

Argan, Inc is a holding company that provides engineering, procurement, construction, commissioning, operations and maintenance services for the power generation and renewable energy industries. Its work supports the development, construction and improvement of utility-scale energy infrastructure.

Through its subsidiaries, Argan offers engineering and construction management, project development support, procurement, installation, startup and commissioning services. Its projects have included natural gas-fired power plants, solar and other renewable energy facilities, and related industrial and electrical infrastructure.

Argan's principal operating businesses include Gemma Power Systems, which provides engineering, procurement and construction services for power generation and renewable energy projects, and Atlantic Projects Company, which provides engineering, project management and construction-related services.

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