TD Asset Management Inc Buys 62,811 Shares of Argan, Inc. $AGX

Key Points

• TD Asset Management boosted its Argan stake by 47.6% in the fourth quarter, buying 62,811 more shares and ending with 194,744 shares valued at about $61.0 million.
• Argan reported strong quarterly results, with EPS of $3.24 beating estimates of $2.27 and revenue of $290.95 million topping expectations; revenue jumped 50.2% year over year.
• The company’s board authorized a $200 million share buyback, while management also declared a $0.50 quarterly dividend, signaling confidence in cash generation and shareholder returns.

TD Asset Management Inc lifted its stake in shares of Argan, Inc. (NYSE:AGX - Free Report) by 47.6% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 194,744 shares of the construction company's stock after acquiring an additional 62,811 shares during the period. TD Asset Management Inc owned approximately 1.40% of Argan worth $61,017,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in AGX. First Trust Advisors LP lifted its holdings in shares of Argan by 69.8% during the 3rd quarter. First Trust Advisors LP now owns 559,466 shares of the construction company's stock worth $151,084,000 after acquiring an additional 230,073 shares during the last quarter. Balyasny Asset Management L.P. lifted its stake in Argan by 168.9% in the second quarter. Balyasny Asset Management L.P. now owns 253,365 shares of the construction company's stock worth $55,862,000 after purchasing an additional 159,149 shares during the last quarter. Invesco Ltd. lifted its stake in Argan by 172.5% in the second quarter. Invesco Ltd. now owns 229,893 shares of the construction company's stock worth $50,687,000 after purchasing an additional 145,516 shares during the last quarter. Epoch Investment Partners Inc. bought a new stake in Argan in the third quarter worth $34,647,000. Finally, Divisadero Street Capital Management LP bought a new stake in Argan in the third quarter worth $33,900,000. 79.43% of the stock is owned by institutional investors.

Insider Activity at Argan

In related news, CEO Charles Edwin Iv Collins sold 11,068 shares of the business'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 owned 30,320 shares in the company, valued at $18,847,215.20. The trade was a 26.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO David Hibbert Watson sold 19,310 shares of the business's 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 transaction, the chief executive officer owned 49,998 shares in the company, valued at $30,104,295.78. This represents a 27.86% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 64,543 shares of company stock valued at $39,054,956 over the last three months. Corporate insiders own 6.69% of the company's stock.

Argan Price Performance

Shares of NYSE AGX opened at $695.56 on Friday. Argan, Inc. has a 1 year low of $193.82 and a 1 year high of $779.00. The company's 50-day moving average is $636.32 and its 200 day moving average is $468.26. The stock has a market capitalization of $9.70 billion, a P/E ratio of 61.12 and a beta of 0.58.

Argan (NYSE:AGX - Get Free Report) last announced its quarterly earnings results on Thursday, June 4th. The construction company reported $3.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.27 by $0.97. Argan had a net margin of 15.48% and a return on equity of 37.94%. The company had revenue of $290.95 million for the quarter, compared to analysts' expectations of $256.03 million. During the same quarter in the previous year, the company earned $1.60 earnings per share. Argan's quarterly revenue was up 50.2% on a year-over-year basis. Research analysts anticipate that Argan, Inc. will post 11.44 earnings per share for the current year.

Argan declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, April 8th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the construction company to reacquire up to 2.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Argan Announces Dividend

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

Argan News Summary

Here are the key news stories impacting Argan this week:

• Positive Sentiment: Argan beat expectations with first-quarter earnings of $3.24 per share versus $2.27 expected, while revenue of $290.95 million also topped estimates. Revenue rose 50.2% year over year, highlighting continued strength in the company’s power-project construction business. Article Title
• Positive Sentiment: Management said Argan expects to add new projects over the next 10 to 18 months, reinforcing investor confidence in its backlog-driven growth outlook. Article Title
• Positive Sentiment: The board increased the share repurchase authorization to $200 million, which can support earnings per share and signals confidence in the company’s cash generation. Article Title
• Positive Sentiment: Investor commentary also pointed to a strong power-project backlog and record quarterly results, suggesting the company is benefiting from demand tied to AI/data-center power needs and broader electrification trends. Article Title
• Neutral Sentiment: Several earnings-call transcripts and presentation posts largely reiterate the same quarterly results and management commentary, adding context but not materially changing the investment story. Article Title
• Neutral Sentiment: Market coverage also notes the stock had already rallied ahead of earnings, so part of the move may reflect investors positioning for strong results and shareholder returns. Article Title

Wall Street Analyst Weigh In

Several research firms have weighed in on AGX. 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 note on Friday, March 27th. Weiss Ratings reissued a "buy (b)" rating on shares of Argan in a research note on Monday, April 6th. The Goldman Sachs Group boosted their price target on shares of Argan from $399.00 to $518.00 and gave the stock a "buy" rating in a research note on Friday, March 27th. Lake Street Capital boosted their price target on shares of Argan from $375.00 to $600.00 and gave the stock a "hold" rating in a research note on Friday. Finally, Zacks Research downgraded shares of Argan from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 26th. Four equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, Argan currently has an average rating of "Moderate Buy" and an average target price of $470.40.

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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