Ranger Investment Management L.P. Purchases New Holdings in Argan, Inc. $AGX

Key Points

• Ranger Investment Management purchased 47,889 Argan shares worth approximately $38.2 million, making AGX 2.4% of its portfolio and its sixth-largest holding. Institutional investors collectively own 79.43% of the company.
• Argan reported strong quarterly results, with earnings per share of $3.24 beating estimates of $2.31 and revenue rising 50.2% year over year to $290.95 million.
• Argan pays a quarterly dividend of $0.50, equivalent to a $2.00 annualized payout and a 0.4% yield. However, insiders sold 127,973 shares worth $87.6 million over the past three months, while analysts maintain a “Moderate Buy” consensus with a $470.40 average price target.

Ranger Investment Management L.P. bought a new stake in shares of Argan, Inc. (NYSE:AGX - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 47,889 shares of the construction company's stock, valued at approximately $38,242,000. Argan comprises 2.4% of Ranger Investment Management L.P.'s holdings, making the stock its 6th biggest position. Ranger Investment Management L.P. owned 0.34% of Argan as of its most recent SEC filing.

Several other large investors have also modified their holdings of the stock. BlackRock Inc. bought a new position in Argan during the 2nd quarter worth approximately $1,764,086,000. Maverick Capital Ltd. acquired a new position in shares of Argan during the fourth quarter valued at $137,503,000. First Trust Advisors LP boosted its stake in Argan by 32.1% during the 1st quarter. First Trust Advisors LP now owns 791,353 shares of the construction company's stock valued at $431,010,000 after purchasing an additional 192,204 shares during the period. Bank of New York Mellon Corp bought a new position in Argan in the 2nd quarter worth approximately $131,878,000. Finally, Balyasny Asset Management L.P. increased its position in Argan by 168.9% in the 2nd quarter. Balyasny Asset Management L.P. now owns 253,365 shares of the construction company's stock valued at $55,862,000 after acquiring an additional 159,149 shares during the period. Institutional investors own 79.43% of the company's stock.

Argan Price Performance

NYSE AGX opened at $504.36 on Monday. Argan, Inc. has a 12 month low of $197.00 and a 12 month high of $805.75. The firm has a market capitalization of $7.07 billion, a PE ratio of 44.32 and a beta of 0.61. The company's 50 day simple moving average is $633.25 and its 200 day simple moving average is $581.24.

Argan (NYSE:AGX - Get Free Report) last released its earnings results on Thursday, June 4th. The construction company reported $3.24 earnings per share for the quarter, topping 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 firm had revenue of $290.95 million during the quarter, compared to the consensus estimate of $256.03 million. During the same period in the prior year, the firm posted $1.60 earnings per share. The firm's revenue for the quarter was up 50.2% compared to the same quarter last year. Sell-side analysts anticipate that Argan, Inc. will post 12.6 earnings per share for the current fiscal year.

Argan Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 23rd were issued a $0.50 dividend. The ex-dividend date was Thursday, July 23rd. This represents a $2.00 annualized dividend and a dividend yield of 0.4%. Argan's dividend payout ratio is 17.57%.

Insider Buying and Selling at Argan

In other Argan news, Chairman William F. Griffin, Jr. sold 50,000 shares of the business's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $643.46, for a total value of $32,173,000.00. Following the sale, the chairman directly owned 90,976 shares in the company, valued at approximately $58,539,416.96. The trade was a 35.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John Ronald Jr. Jeffrey sold 5,716 shares of the company's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $579.64, for a total transaction of $3,313,222.24. Following the completion of the sale, the director directly owned 2,533 shares of the company's stock, valued at $1,468,228.12. The trade was a 69.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 127,973 shares of company stock valued at $87,554,828. Corporate insiders own 2.99% of the company's stock.

Analyst Ratings Changes

A number of research analysts have issued reports on AGX shares. Wall Street Zen lowered Argan from a "buy" rating to a "hold" rating in a research report on Saturday. Weiss Ratings lowered Argan from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. Lake Street Capital lifted their price objective 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. Finally, Zacks Research downgraded shares of Argan from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $470.40.

About Argan

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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