Argan, Inc. $AGX is AltraVue Capital LLC's 10th Largest Position

Key Points

• AltraVue Capital cut its Argan stake by 42.3% in the fourth quarter, but the position still remained its 10th largest holding at about 3.7% of the portfolio.
• Argan reported strong first-quarter results, with EPS of $3.24 topping estimates of $2.27 and revenue of $290.95 million beating expectations, up 50.2% year over year.
• The company’s board authorized a $200 million share buyback, and analysts now broadly rate the stock a Moderate Buy with a consensus target price of $470.40.

AltraVue Capital LLC decreased its stake in shares of Argan, Inc. (NYSE:AGX - Free Report) by 42.3% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 142,942 shares of the construction company's stock after selling 104,600 shares during the quarter. Argan comprises about 3.7% of AltraVue Capital LLC's investment portfolio, making the stock its 10th biggest holding. AltraVue Capital LLC owned about 1.03% of Argan worth $44,787,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also added to or reduced their stakes in the stock. Aster Capital Management DIFC Ltd bought a new stake in shares of Argan in the 3rd quarter worth $25,000. Montag A & Associates Inc. bought a new stake in shares of Argan in the 4th quarter worth $30,000. Danske Bank A S bought a new stake in shares of Argan in the 3rd quarter worth $27,000. Accredited Wealth Management LLC bought a new stake in shares of Argan in the 3rd quarter worth $32,000. Finally, USA Financial Formulas bought a new stake in shares of Argan in the 4th quarter worth $40,000. Hedge funds and other institutional investors own 79.43% of the company's stock.

Insider Activity

In related news, Director Alexander Lisa Larroque sold 350 shares of the stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $630.58, for a total transaction of $220,703.00. Following the completion of the transaction, the director directly owned 350 shares of the company's stock, valued at approximately $220,703. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director John Ronald Jr. Jeffrey sold 2,698 shares of the stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $664.84, for a total value of $1,793,738.32. Following the transaction, the director directly owned 2,000 shares of the company's stock, valued at approximately $1,329,680. The trade was a 57.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 64,543 shares of company stock valued at $39,054,956 in the last three months. 6.69% of the stock is currently owned by insiders.

Argan Trading Up 0.9%

NYSE:AGX opened at $695.56 on Friday. Argan, Inc. has a 12-month low of $193.82 and a 12-month high of $779.00. The stock has a 50-day moving average price of $636.32 and a 200 day moving average price of $468.26. The stock has a market capitalization of $9.70 billion, a P/E ratio of 61.12 and a beta of 0.58.

Argan (NYSE:AGX - Get Free Report) last released its earnings results on Thursday, June 4th. The construction company reported $3.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.27 by $0.97. Argan had a return on equity of 37.94% and a net margin of 15.48%.The firm had revenue of $290.95 million during the quarter, compared to analysts' expectations of $256.03 million. During the same quarter last year, the business posted $1.60 earnings per share. The firm's revenue was up 50.2% on a year-over-year basis. On average, research analysts predict that Argan, Inc. will post 11.44 earnings per share for the current fiscal year.

Argan announced that its Board of Directors has initiated a share repurchase plan on Wednesday, April 8th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the construction company to purchase up to 2.5% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

Argan Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Wednesday, April 22nd were given a dividend of $0.50 per share. The ex-dividend date was Wednesday, April 22nd. This represents a $2.00 annualized dividend and a dividend yield of 0.3%. Argan's dividend payout ratio (DPR) is currently 20.53%.

Key Stories Impacting Argan

Here are the key news stories impacting Argan this week:

• Positive Sentiment: Argan beat expectations with first-quarter earnings of $3.24 per share versus $2.27 expected, while revenue of $290.95 million also topped estimates. Revenue rose 50.2% year over year, highlighting continued strength in the company’s power-project construction business. Article Title
• Positive Sentiment: Management said Argan expects to add new projects over the next 10 to 18 months, reinforcing investor confidence in its backlog-driven growth outlook. Article Title
• Positive Sentiment: The board increased the share repurchase authorization to $200 million, which can support earnings per share and signals confidence in the company’s cash generation. Article Title
• Positive Sentiment: Investor commentary also pointed to a strong power-project backlog and record quarterly results, suggesting the company is benefiting from demand tied to AI/data-center power needs and broader electrification trends. Article Title
• Neutral Sentiment: Several earnings-call transcripts and presentation posts largely reiterate the same quarterly results and management commentary, adding context but not materially changing the investment story. Article Title
• Neutral Sentiment: Market coverage also notes the stock had already rallied ahead of earnings, so part of the move may reflect investors positioning for strong results and shareholder returns. Article Title

Analyst Ratings Changes

A number of analysts have commented on the company. Lake Street Capital lifted their target price on Argan from $375.00 to $600.00 and gave the stock a "hold" rating in a report on Friday. The Goldman Sachs Group lifted their price objective on Argan from $399.00 to $518.00 and gave the stock a "buy" rating in a report on Friday, March 27th. Freedom Capital raised Argan to a "hold" rating in a report on Tuesday, March 10th. Wall Street Zen raised Argan from a "hold" rating to a "buy" rating in a report on Saturday, March 28th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Argan in a report on Monday, April 6th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $470.40.

Argan Profile

Argan, Inc NYSE: AGX is a holding company that provides professional technical and management services to the power generation and renewable energy industries. Through its wholly owned subsidiaries, the company delivers engineering, procurement and construction management (EPCM), commissioning and operations and maintenance (O&M) services for a broad range of energy facilities. Argan focuses on projects for utility, industrial and municipally owned clients, helping to bring efficient thermal and renewable energy plants into operation and maintain optimal performance over the asset life cycle.

The company's principal subsidiaries include Gemma Power Systems, which specializes in turnkey construction of combined-cycle, simple-cycle, cogeneration and renewable energy plants; Atlantic Projects Company, which provides electrical balance-of-plant, control systems, instrumentation and commissioning services; and Infrastructure Solutions, which offers industrial maintenance, outage support and modification services.

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