Jennison Associates LLC Makes New $31.68 Million Investment in Argan, Inc. $AGX

Key Points

• Jennison Associates LLC acquired a new stake of 101,097 shares in Argan valued at approximately $31.68 million, representing about 0.73% of the company and adding to institutional ownership that now totals roughly 79.4%.
• Corporate insiders sold a combined 64,543 shares worth about $39.05 million during the quarter (including director sales), reducing insider holdings to roughly 6.69%.
• Argan reported a strong quarter (EPS $3.47 vs. $1.99 estimate, revenue up 12.7%), its board approved a $200 million share repurchase, and analysts have raised ratings and targets even as the stock trades near a 12‑month high (~$703).

Jennison Associates LLC acquired a new stake in Argan, Inc. (NYSE:AGX - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 101,097 shares of the construction company's stock, valued at approximately $31,676,000. Jennison Associates LLC owned approximately 0.73% of Argan at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Emerald Mutual Fund Advisers Trust acquired a new position in Argan during the third quarter worth about $14,138,000. Thames Capital Management LLC acquired a new position in Argan during the third quarter worth about $11,175,000. Versor Investments LP acquired a new position in Argan during the third quarter worth about $971,000. Leavell Investment Management Inc. raised its position in Argan by 125.3% during the third quarter. Leavell Investment Management Inc. now owns 12,505 shares of the construction company's stock worth $3,377,000 after acquiring an additional 6,955 shares during the last quarter. Finally, TD Asset Management Inc acquired a new position in Argan during the third quarter worth about $35,629,000. 79.43% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Argan

In related news, Director Peter W. Getsinger sold 3,000 shares of the business's stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $628.36, for a total value of $1,885,080.00. Following the completion of the sale, the director directly owned 6,847 shares in the company, valued at approximately $4,302,380.92. The trade was a 30.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Ronald Jr. Jeffrey sold 2,698 shares of the business's stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $664.84, for a total transaction of $1,793,738.32. Following the completion of the sale, the director 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 64,543 shares of company stock valued at $39,054,956. Corporate insiders own 6.69% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Zacks Research upgraded shares of Argan from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, March 31st. JPMorgan Chase & Co. upgraded shares of Argan from a "neutral" rating to an "overweight" rating and set a $550.00 target price for the company in a research report on Friday, March 27th. The Goldman Sachs Group lifted their price target on shares of Argan from $399.00 to $518.00 and gave the stock a "buy" rating in a report on Friday, March 27th. Lake Street Capital lifted their price target on shares of Argan from $325.00 to $375.00 and gave the stock a "hold" rating in a report on Friday, March 27th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Argan in a report on Monday, April 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $425.40.

Argan Price Performance

Shares of NYSE AGX opened at $703.06 on Friday. The company has a market cap of $9.80 billion, a PE ratio of 72.18 and a beta of 0.46. Argan, Inc. has a 12 month low of $157.88 and a 12 month high of $704.59. The company has a 50-day simple moving average of $527.67 and a 200-day simple moving average of $404.99.

Argan (NYSE:AGX - Get Free Report) last issued its quarterly earnings results on Thursday, March 26th. The construction company reported $3.47 EPS for the quarter, topping analysts' consensus estimates of $1.99 by $1.48. The business had revenue of $262.05 million during the quarter, compared to the consensus estimate of $255.32 million. Argan had a net margin of 14.59% and a return on equity of 33.62%. The company's quarterly revenue was up 12.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.22 earnings per share. On average, analysts anticipate that Argan, Inc. will post 11.44 EPS for the current year.

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

Argan Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Wednesday, April 22nd were issued a dividend of $0.50 per share. The ex-dividend date was Wednesday, April 22nd. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.3%. Argan's payout ratio is 20.53%.

Argan Company 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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