Vanguard Group Inc. Acquires 3,068 Shares of Argan, Inc. $AGX

Key Points

• Vanguard increased its stake in Argan by 3,068 shares in the fourth quarter, bringing its total holding to 827,482 shares worth about $259.3 million. Institutional investors still own a large majority of the company, at 79.43%.
• Argan reported strong quarterly results, with EPS of $3.47 topping expectations of $1.99 and revenue of $262.05 million slightly above estimates. Revenue rose 12.7% year over year, and the company posted a 14.59% net margin.
• The company announced capital returns and insider selling, including a new $200 million share buyback authorization and a quarterly dividend of $0.50 per share. At the same time, insiders, including the CEO, sold shares over the past 90 days.

Vanguard Group Inc. boosted its holdings in shares of Argan, Inc. (NYSE:AGX - Free Report) by 0.4% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 827,482 shares of the construction company's stock after acquiring an additional 3,068 shares during the quarter. Vanguard Group Inc. owned 5.97% of Argan worth $259,267,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Aster Capital Management DIFC Ltd bought a new stake in Argan during the 3rd quarter worth approximately $25,000. Danske Bank A S bought a new stake in Argan during the 3rd quarter worth approximately $27,000. Accredited Wealth Management LLC bought a new stake in Argan during the 3rd quarter worth approximately $32,000. USA Financial Formulas bought a new stake in Argan during the 4th quarter worth approximately $40,000. Finally, National Bank of Canada FI grew its holdings in Argan by 26.7% during the 3rd quarter. National Bank of Canada FI now owns 147 shares of the construction company's stock worth $40,000 after acquiring an additional 31 shares during the last quarter. 79.43% of the stock is owned by institutional investors.

Argan Stock Performance

NYSE:AGX opened at $680.83 on Friday. The firm's fifty day moving average is $543.96 and its 200-day moving average is $415.32. Argan, Inc. has a 52 week low of $168.26 and a 52 week high of $742.30. The firm has a market cap of $9.50 billion, a P/E ratio of 69.90 and a beta of 0.61.

Argan (NYSE:AGX - Get Free Report) last posted its quarterly earnings data on Thursday, March 26th. The construction company reported $3.47 EPS for the quarter, beating analysts' consensus estimates of $1.99 by $1.48. Argan had a net margin of 14.59% and a return on equity of 33.62%. The company had revenue of $262.05 million for the quarter, compared to analyst estimates of $255.32 million. During the same period in the prior year, the firm posted $2.22 EPS. The company's quarterly revenue was up 12.7% on a year-over-year basis. As a group, sell-side analysts anticipate that Argan, Inc. will post 11.44 earnings per share for the current year.

Argan declared that its board has initiated a share buyback 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 buy up to 2.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Argan Announces Dividend

The business also recently announced 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. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date was Wednesday, April 22nd. Argan's payout ratio is presently 20.53%.

Insider Activity at Argan

In related news, CEO David Hibbert Watson sold 19,310 shares of the business's stock in a transaction on 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. The trade was a 27.86% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Charles Edwin Iv Collins sold 11,068 shares of the business's stock in a transaction on 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 position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 64,543 shares of company stock worth $39,054,956 over the last ninety days. 6.69% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of research firms have weighed in on AGX. Wall Street Zen raised shares of Argan from a "hold" rating to a "buy" rating in a report on Saturday, March 28th. JPMorgan Chase & Co. raised shares of Argan from a "neutral" rating to an "overweight" rating and set a $550.00 price objective on the stock in a research note on Friday, March 27th. The Goldman Sachs Group upped their price objective on shares of Argan from $399.00 to $518.00 and gave the company a "buy" rating in a research note on Friday, March 27th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Argan in a research note on Monday, April 6th. Finally, Lake Street Capital upped their price objective on shares of Argan from $325.00 to $375.00 and gave the company a "hold" rating in a research note on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Argan presently has a consensus rating of "Moderate Buy" and a consensus price target of $425.40.

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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