Oregon Public Employees Retirement Fund Purchases Shares of 3,172 Argan, Inc. $AGX

Key Points

• Oregon Public Employees Retirement Fund opened a new position in Argan, buying 3,172 shares worth about $1.73 million in the first quarter.
• Argan has drawn continued institutional interest, with several other funds increasing stakes; overall, institutions now own 79.43% of the company.
• The company reported strong quarterly results, with EPS of $3.24 topping estimates and revenue up 50.2% year over year, while analysts currently rate the stock Moderate Buy with a consensus target price of $470.40.

Oregon Public Employees Retirement Fund acquired a new stake in shares of Argan, Inc. (NYSE:AGX - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 3,172 shares of the construction company's stock, valued at approximately $1,728,000.

A number of other institutional investors and hedge funds also recently made changes to their positions in AGX. Millennium Management LLC increased its position in Argan by 12.2% in the 1st quarter. Millennium Management LLC now owns 117,805 shares of the construction company's stock valued at $15,452,000 after buying an additional 12,854 shares in the last quarter. NewEdge Advisors LLC boosted its holdings in Argan by 118.3% in the first quarter. NewEdge Advisors LLC now owns 5,316 shares of the construction company's stock worth $697,000 after acquiring an additional 2,881 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in 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 acquiring an additional 4,196 shares during the period. Intech Investment Management LLC grew its stake in 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 acquiring an additional 2,442 shares during the period. Finally, Hsbc Holdings PLC bought a new stake in shares of Argan during the second quarter valued at approximately $286,000. Institutional investors own 79.43% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on AGX shares. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Argan in a research report on Thursday, July 2nd. JPMorgan Chase & Co. raised shares of 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. Lake Street Capital boosted their price target on shares of Argan from $375.00 to $600.00 and gave the company a "hold" rating in a research note on Friday, June 5th. Zacks Research upgraded shares of Argan from a "hold" rating to a "strong-buy" rating in a report on Wednesday, June 24th. Finally, The Goldman Sachs Group upped 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. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Argan presently has a consensus rating of "Moderate Buy" and a consensus target price of $470.40.

Argan Stock Performance

AGX traded down $56.07 during midday trading on Friday, reaching $631.42. 308,328 shares of the company were exchanged, compared to its average volume of 317,320. The company has a market cap of $8.85 billion, a price-to-earnings ratio of 55.48 and a beta of 0.57. Argan, Inc. has a one year low of $196.90 and a one year high of $805.75. The company's fifty day moving average price is $691.09 and its 200 day moving average price is $530.98.

Argan (NYSE:AGX - Get Free Report) last posted its earnings results on Thursday, June 4th. The construction company reported $3.24 earnings per share for the quarter, beating analysts' consensus estimates of $2.31 by $0.93. Argan had a return on equity of 36.89% and a net margin of 15.48%.The company had revenue of $290.95 million for the quarter, compared to analyst estimates of $256.03 million. During the same quarter last year, the company earned $1.60 earnings per share. The company's revenue for the quarter was up 50.2% on a year-over-year basis. As a group, sell-side analysts anticipate that Argan, Inc. will post 12.6 earnings per share for the current fiscal year.

Argan Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 23rd will be paid a dividend of $0.50 per share. The ex-dividend date is Thursday, July 23rd. This represents a $2.00 annualized dividend and a yield of 0.3%. Argan's dividend payout ratio (DPR) is 17.57%.

Argan declared that its Board of Directors has authorized a share repurchase 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 generally a sign that the company's leadership believes its shares are undervalued.

Insider Activity

In related news, CEO Charles Edwin Iv Collins sold 11,068 shares of the firm's stock in a transaction dated Tuesday, April 21st. The shares were sold at an average price of $621.61, for a total transaction of $6,879,979.48. Following the transaction, the chief executive officer directly owned 30,320 shares of the company's stock, valued at $18,847,215.20. This trade represents a 26.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO David Hibbert Watson sold 19,310 shares of the business's stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $602.11, for a total transaction of $11,626,744.10. Following the transaction, the chief executive officer owned 49,998 shares in the company, valued at approximately $30,104,295.78. This trade represents a 27.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 179,663 shares of company stock worth $119,410,408. Company insiders own 6.69% of the company's stock.

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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