Navellier & Associates Inc. Lowers Stock Position in Argan, Inc. $AGX

Key Points

• Navellier & Associates trimmed its stake in Argan by 6.1% to 36,108 shares (about $11.31M), making AGX its 17th largest holding and ~1.3% of the firm's portfolio.
• Argan posted strong quarterly results—EPS $3.47 vs. $1.99 expected and revenue of $262.05M (+12.7% YoY)—and trades with a market cap of about $10.05B and a 52-week high near $742.
• Insiders have sold significant stock (64,543 shares, ~$39.1M over three months), even as the company announced a $200M share buyback (up to 2.5% of shares) and pays a $0.50 quarterly dividend (0.3% yield).

Navellier & Associates Inc. lowered its position in Argan, Inc. (NYSE:AGX - Free Report) by 6.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 36,108 shares of the construction company's stock after selling 2,334 shares during the period. Argan comprises about 1.3% of Navellier & Associates Inc.'s portfolio, making the stock its 17th largest position. Navellier & Associates Inc. owned about 0.26% of Argan worth $11,313,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in AGX. Millennium Management LLC raised its holdings in shares of Argan by 12.2% in the first quarter. Millennium Management LLC now owns 117,805 shares of the construction company's stock valued at $15,452,000 after purchasing an additional 12,854 shares during the last quarter. NewEdge Advisors LLC raised its holdings in shares of Argan by 118.3% in the first quarter. NewEdge Advisors LLC now owns 5,316 shares of the construction company's stock valued at $697,000 after purchasing an additional 2,881 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Argan by 13.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 35,567 shares of the construction company's stock valued at $4,665,000 after purchasing an additional 4,196 shares during the last quarter. Intech Investment Management LLC raised its holdings in shares of Argan by 37.3% in the first quarter. Intech Investment Management LLC now owns 8,985 shares of the construction company's stock valued at $1,179,000 after purchasing an additional 2,442 shares during the last quarter. Finally, Hsbc Holdings PLC purchased a new stake in shares of Argan in the second quarter valued at about $286,000. Hedge funds and other institutional investors own 79.43% of the company's stock.

Argan Stock Performance

NYSE AGX opened at $720.64 on Wednesday. Argan, Inc. has a 52-week low of $162.10 and a 52-week high of $742.30. The company has a 50-day simple moving average of $533.31 and a 200 day simple moving average of $409.39. The company has a market capitalization of $10.05 billion, a PE ratio of 73.99 and a beta of 0.61.

Argan (NYSE:AGX - Get Free Report) last issued its earnings results on Thursday, March 26th. The construction company reported $3.47 earnings per share for the quarter, topping analysts' consensus estimates of $1.99 by $1.48. The firm had revenue of $262.05 million during the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter last year, the business earned $2.22 earnings per share. As a group, analysts forecast that Argan, Inc. will post 11.44 EPS for the current fiscal year.

Argan Announces Dividend

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

Argan declared that its Board of Directors has authorized a share repurchase program on Wednesday, April 8th that allows the company to buyback $200.00 million in shares. This buyback authorization allows the construction company to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on AGX shares. Weiss Ratings restated a "buy (b)" rating on shares of Argan in a research report on Monday, April 6th. JPMorgan Chase & Co. upgraded shares of Argan from a "neutral" rating to an "overweight" rating and set a $550.00 price objective for the company in a report on Friday, March 27th. Lake Street Capital raised their price objective on shares of Argan from $325.00 to $375.00 and gave the stock a "hold" rating in a report on Friday, March 27th. The Goldman Sachs Group raised their price objective on shares of Argan from $399.00 to $518.00 and gave the stock a "buy" rating in a report on Friday, March 27th. Finally, Freedom Capital upgraded shares of Argan to a "hold" rating in a report on Tuesday, March 10th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $425.40.

Insider Activity

In other Argan news, CEO David Hibbert Watson sold 19,310 shares of the stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $602.11, for a total transaction of $11,626,744.10. Following the completion of the transaction, the chief executive officer owned 49,998 shares in the company, valued at $30,104,295.78. This trade represents a 27.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Charles Edwin Iv Collins sold 11,068 shares of the stock in a transaction dated Tuesday, April 21st. The stock was sold at an average price of $621.61, for a total transaction of $6,879,979.48. Following the transaction, the chief executive officer owned 30,320 shares of the company's stock, valued at $18,847,215.20. This represents a 26.74% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 64,543 shares of company stock valued at $39,054,956. 6.69% of the stock is currently owned by corporate insiders.

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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