Invst LLC Makes New Investment in Argan, Inc. $AGX

Key Points

• Invst LLC acquired 4,102 shares of Argan, Inc. valued at approximately $538,000, indicating growing interest from institutional investors.
• Argan's CEO sold 5,000 shares for $1.23 million, reducing his ownership by 25.63%, while several other insiders also increased their selling activity.
• The company recently increased its quarterly dividend from $0.38 to $0.50, reflecting a commitment to returning value to shareholders.

Invst LLC acquired a new stake in Argan, Inc. (NYSE:AGX - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 4,102 shares of the construction company's stock, valued at approximately $538,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of AGX. Vanguard Group Inc. lifted its holdings in Argan by 9.8% during the 1st quarter. Vanguard Group Inc. now owns 926,168 shares of the construction company's stock worth $121,485,000 after buying an additional 82,585 shares during the last quarter. American Century Companies Inc. increased its stake in Argan by 7.6% in the first quarter. American Century Companies Inc. now owns 517,302 shares of the construction company's stock valued at $67,855,000 after purchasing an additional 36,644 shares during the last quarter. Goodlander Investment Management LLC purchased a new position in Argan in the first quarter valued at approximately $18,364,000. Millennium Management LLC raised its holdings in Argan by 12.2% during the first quarter. Millennium Management LLC now owns 117,805 shares of the construction company's stock worth $15,452,000 after purchasing an additional 12,854 shares in the last quarter. Finally, Lord Abbett & CO. LLC lifted its position in shares of Argan by 4.8% during the 1st quarter. Lord Abbett & CO. LLC now owns 114,839 shares of the construction company's stock worth $15,063,000 after buying an additional 5,298 shares during the last quarter. Institutional investors and hedge funds own 79.43% of the company's stock.

Argan Trading Up 9.1%

Shares of AGX traded up $21.80 during mid-day trading on Thursday, hitting $261.22. 269,546 shares of the company's stock were exchanged, compared to its average volume of 429,984. Argan, Inc. has a fifty-two week low of $89.66 and a fifty-two week high of $261.42. The business's 50 day moving average is $225.57 and its two-hundred day moving average is $187.89. The firm has a market capitalization of $3.61 billion, a P/E ratio of 31.40 and a beta of 0.62.

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

Argan Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Thursday, October 23rd will be paid a $0.50 dividend. This is a boost from Argan's previous quarterly dividend of $0.38. The ex-dividend date is Thursday, October 23rd. This represents a $2.00 annualized dividend and a dividend yield of 0.8%. Argan's dividend payout ratio (DPR) is 24.04%.

Insiders Place Their Bets

In other news, CFO Richard H. Deily sold 1,604 shares of the business's stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $242.77, for a total transaction of $389,403.08. Following the transaction, the chief financial officer directly owned 7,802 shares in the company, valued at $1,894,091.54. The trade was a 17.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director John Ronald Jr. Jeffrey sold 2,621 shares of the firm's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $235.63, for a total transaction of $617,586.23. Following the completion of the sale, the director owned 9,254 shares of the company's stock, valued at approximately $2,180,520.02. The trade was a 22.07% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 30,445 shares of company stock valued at $7,005,991. Corporate insiders own 6.69% of the company's stock.

Wall Street Analysts Forecast Growth

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

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.