Wesbanco Bank Inc. Has $2.22 Million Stake in Argan, Inc. $AGX

Key Points

• Wesbanco Bank cut its Argan stake by 36.7% in the fourth quarter, leaving it with 7,085 shares valued at about $2.22 million. Institutional ownership remains high, with funds and hedge funds holding about 79.43% of the stock.
• Argan reported strong quarterly earnings, posting $3.47 EPS versus the $1.99 consensus and revenue of $262.05 million, above estimates. Revenue rose 12.7% year over year, and analysts now expect full-year EPS of 11.44.
• The company authorized a $200 million share buyback and also paid a quarterly dividend of $0.50 per share. However, insider selling has been notable, including recent sales by the CEO and a director, with insiders selling 64,543 shares over the last 90 days.

Wesbanco Bank Inc. trimmed its position in Argan, Inc. (NYSE:AGX - Free Report) by 36.7% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 7,085 shares of the construction company's stock after selling 4,100 shares during the quarter. Wesbanco Bank Inc. owned 0.05% of Argan worth $2,220,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of AGX. Millennium Management LLC raised its stake in shares of Argan by 12.2% in the first quarter. Millennium Management LLC now owns 117,805 shares of the construction company's stock valued at $15,452,000 after purchasing an additional 12,854 shares in the last quarter. NewEdge Advisors LLC raised its stake in shares of Argan by 118.3% in the first quarter. NewEdge Advisors LLC now owns 5,316 shares of the construction company's stock valued at $697,000 after purchasing an additional 2,881 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position 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 position 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 Argan in the second quarter valued at $286,000. 79.43% of the stock is currently owned by institutional investors and hedge funds.

Argan Stock Performance

Shares of AGX stock opened at $680.83 on Friday. The stock's fifty day moving average is $543.96 and its 200-day moving average is $415.32. The stock has a market capitalization of $9.50 billion, a PE ratio of 69.90 and a beta of 0.61. Argan, Inc. has a 52 week low of $168.26 and a 52 week high of $742.30.

Argan (NYSE:AGX - Get Free Report) last announced its earnings results on Thursday, March 26th. The construction company reported $3.47 EPS for the quarter, topping the consensus estimate of $1.99 by $1.48. The company had revenue of $262.05 million for the quarter, compared to analysts' expectations of $255.32 million. Argan had a return on equity of 33.62% and a net margin of 14.59%.The business's revenue for the quarter was up 12.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.22 earnings per share. As a group, analysts forecast that Argan, Inc. will post 11.44 earnings per share for the current fiscal year.

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

Argan Announces Dividend

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

Insider Activity at Argan

In other news, CEO Charles Edwin Iv Collins sold 11,068 shares of the stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $621.61, for a total transaction of $6,879,979.48. Following the sale, the chief executive officer owned 30,320 shares in the company, valued at approximately $18,847,215.20. This represents a 26.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director John Ronald Jr. Jeffrey sold 2,698 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $664.84, for a total value of $1,793,738.32. Following the sale, the director owned 2,000 shares in the company, valued at $1,329,680. The trade was a 57.43% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 64,543 shares of company stock valued at $39,054,956. 6.69% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of brokerages have weighed in on AGX. The Goldman Sachs Group upped their price target on Argan from $399.00 to $518.00 and gave the company a "buy" rating in a research report on Friday, March 27th. Lake Street Capital upped their price target on Argan from $325.00 to $375.00 and gave the company a "hold" rating in a research report on Friday, March 27th. Wall Street Zen upgraded Argan from a "hold" rating to a "buy" rating in a research report on Saturday, March 28th. JPMorgan Chase & Co. upgraded Argan from a "neutral" rating to an "overweight" rating and set a $550.00 price target on the stock in a research report on Friday, March 27th. Finally, Freedom Capital upgraded Argan to a "hold" rating in a research report on Tuesday, March 10th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price 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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