Independent Advisor Alliance Makes New Investment in Argan, Inc. (NYSE:AGX)

Key Points

• Independent Advisor Alliance has acquired a new position in Argan, Inc. (NYSE:AGX), purchasing 23,432 shares valued at approximately $3,074,000 in the 1st quarter of 2023, representing about 0.17% ownership.
• Argan reported a Q2 EPS of $1.60, surpassing consensus estimates by $0.51, with a net margin of 11.00% and year-over-year revenue growth of 22.8%.
• Insider sales included Director William F. Leimkuhler and CEO Charles Edwin Iv Collins, who sold shares totaling over $2.9 million, resulting in significant decreases in their ownership stakes.

Independent Advisor Alliance purchased a new stake in shares of Argan, Inc. (NYSE:AGX - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 23,432 shares of the construction company's stock, valued at approximately $3,074,000. Independent Advisor Alliance owned approximately 0.17% of Argan at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of AGX. Larson Financial Group LLC lifted its holdings in shares of Argan by 2,987.5% during the first quarter. Larson Financial Group LLC now owns 247 shares of the construction company's stock valued at $32,000 after purchasing an additional 239 shares in the last quarter. McIlrath & Eck LLC lifted its holdings in Argan by 419.4% in the fourth quarter. McIlrath & Eck LLC now owns 374 shares of the construction company's stock valued at $51,000 after acquiring an additional 302 shares during the period. Federated Hermes Inc. lifted its holdings in Argan by 1,123.5% in the fourth quarter. Federated Hermes Inc. now owns 416 shares of the construction company's stock valued at $57,000 after acquiring an additional 382 shares during the period. State of Tennessee Department of Treasury bought a new position in Argan in the fourth quarter valued at about $138,000. Finally, Nisa Investment Advisors LLC lifted its holdings in Argan by 12.7% in the first quarter. Nisa Investment Advisors LLC now owns 1,059 shares of the construction company's stock valued at $139,000 after acquiring an additional 119 shares during the period. 79.43% of the stock is owned by institutional investors.

Insider Activity

In related news, Director John Ronald Jr. Jeffrey sold 2,621 shares of the stock in a transaction dated Tuesday, July 29th. The stock was 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 in the company, valued at approximately $2,180,520.02. This trade represents a 22.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Richard H. Deily sold 1,604 shares of the stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $242.77, for a total value of $389,403.08. Following the sale, the chief financial officer owned 7,802 shares of the company's stock, valued at $1,894,091.54. This represents a 17.05% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 96,564 shares of company stock valued at $21,046,366 in the last three months. 6.69% of the stock is currently owned by insiders.

Argan Stock Down 2.3%

NYSE:AGX traded down $5.23 during trading hours on Thursday, hitting $224.30. 166,546 shares of the stock traded hands, compared to its average volume of 437,559. Argan, Inc. has a 1 year low of $69.81 and a 1 year high of $253.79. The company has a market cap of $3.06 billion, a price-to-earnings ratio of 31.46 and a beta of 0.59. The stock has a 50 day moving average price of $219.19 and a 200 day moving average price of $173.75.

Argan (NYSE:AGX - Get Free Report) last issued its quarterly earnings results on Wednesday, June 4th. The construction company reported $1.60 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.51. Argan had a net margin of 11.00% and a return on equity of 29.61%. The business had revenue of $193.66 million for the quarter, compared to the consensus estimate of $193.75 million. During the same quarter in the previous year, the firm earned $0.58 earnings per share. The company's revenue for the quarter was up 22.8% on a year-over-year basis.

Argan Dividend Announcement

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

Analyst Upgrades and Downgrades

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

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.