NBC Securities Inc. Reduces Stake in Argan, Inc. $AGX

Key Points

• NBC Securities cut its stake in Argan by 51.2%, leaving it with 1,547 shares worth about $485,000, while insiders have sold 57,695 shares (≈$33.38M) in the last 90 days and insiders now own 6.69% of the stock.
• Argan reported a strong quarter with EPS of $3.47 versus a $1.99 consensus and revenue of $262.05 million (up 12.7% year-over-year), with a 33.62% ROE and 14.59% net margin.
• The board approved a $200 million share repurchase program (up to 2.5% of shares) and declared a $0.50 quarterly dividend, while analysts have a consensus rating of “Moderate Buy” with a $425.40 price target.

NBC Securities Inc. reduced its position in Argan, Inc. (NYSE:AGX - Free Report) by 51.2% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,547 shares of the construction company's stock after selling 1,624 shares during the period. NBC Securities Inc.'s holdings in Argan were worth $485,000 as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Aster Capital Management DIFC Ltd purchased a new position in Argan in the 3rd quarter valued at approximately $25,000. Danske Bank A S purchased a new position in Argan in the 3rd quarter valued at approximately $27,000. Accredited Wealth Management LLC purchased a new position in Argan in the 3rd quarter valued at approximately $32,000. USA Financial Formulas purchased a new position in Argan in the 4th quarter valued at approximately $40,000. Finally, National Bank of Canada FI increased its stake in Argan by 26.7% in the 3rd quarter. National Bank of Canada FI now owns 147 shares of the construction company's stock valued at $40,000 after purchasing an additional 31 shares in the last quarter. 79.43% of the stock is owned by hedge funds and other institutional investors.

Argan Price Performance

Shares of NYSE AGX opened at $656.06 on Monday. Argan, Inc. has a 1-year low of $142.97 and a 1-year high of $683.12. The business has a 50-day moving average of $509.12 and a 200-day moving average of $396.14. The company has a market capitalization of $9.15 billion, a price-to-earnings ratio of 67.36 and a beta of 0.46.

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 the consensus estimate of $1.99 by $1.48. Argan had a return on equity of 33.62% and a net margin of 14.59%.The company had revenue of $262.05 million during the quarter, compared to the consensus estimate of $255.32 million. During the same quarter in the prior year, the business earned $2.22 earnings per share. The company's revenue was up 12.7% compared to the same quarter last year. Research analysts expect that Argan, Inc. will post 11.44 EPS for the current fiscal year.

Argan declared that its board has approved a stock buyback program on Wednesday, April 8th that allows the company to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the construction company to reacquire up to 2.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Argan Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Wednesday, April 22nd will be issued 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 of this dividend is Wednesday, April 22nd. Argan's dividend payout ratio (DPR) is presently 20.53%.

Insider Buying and Selling at Argan

In related news, CFO Joshua Scott Baugher sold 600 shares of the firm's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $605.60, for a total transaction of $363,360.00. Following the completion of the sale, the chief financial officer directly owned 1,479 shares of the company's stock, valued at approximately $895,682.40. This trade represents a 28.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director William F. Leimkuhler sold 8,444 shares of the firm's stock in a transaction on Monday, April 13th. The shares were sold at an average price of $598.49, for a total transaction of $5,053,649.56. Following the sale, the director directly owned 41,495 shares of the company's stock, valued at approximately $24,834,342.55. The trade was a 16.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 57,695 shares of company stock worth $33,376,380. 6.69% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several equities analysts recently weighed in on AGX shares. Wall Street Zen raised Argan from a "hold" rating to a "buy" rating in a research note on Saturday, March 28th. JPMorgan Chase & Co. raised Argan from a "neutral" rating to an "overweight" rating and set a $550.00 price target for the company in a research report on Friday, March 27th. Weiss Ratings reissued a "buy (b)" rating on shares of Argan in a research report on Monday, April 6th. Lake Street Capital raised their price objective on Argan from $325.00 to $375.00 and gave the stock a "hold" rating in a report on Friday, March 27th. Finally, Zacks Research upgraded Argan from a "hold" rating to a "strong-buy" rating in a report on Tuesday, March 31st. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $425.40.

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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