Insider Selling: Argan (NYSE:AGX) Director Sells 390 Shares of Stock

Key Points

• Argan Inc. (NYSE: AGX) Director Karen Sweeney sold 390 shares for a total of $103,057.50, representing a 22.87% decrease in her ownership of the stock.
• The company recently announced an increase in its quarterly dividend from $0.38 to $0.50 per share, effective for payments on October 31st.
• Argan's stock price rose by 3.2%, reaching $268.99, following a robust earnings report that beat analyst expectations.

Argan, Inc. (NYSE:AGX - Get Free Report) Director Karen Sweeney sold 390 shares of the company's stock in a transaction dated Friday, September 19th. The shares were sold at an average price of $264.25, for a total transaction of $103,057.50. Following the sale, the director directly owned 1,315 shares of the company's stock, valued at $347,488.75. The trade was a 22.87% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Argan Stock Down 1.0%

AGX stock traded down $2.78 during midday trading on Tuesday, hitting $265.57. The company's stock had a trading volume of 102,329 shares, compared to its average volume of 430,040. The firm has a market capitalization of $3.67 billion, a price-to-earnings ratio of 31.88 and a beta of 0.62. The company has a 50 day moving average of $228.54 and a two-hundred day moving average of $191.86. Argan, Inc. has a 12 month low of $93.26 and a 12 month high of $270.12.

Argan (NYSE:AGX - Get Free Report) last announced its quarterly earnings results on Thursday, September 4th. The construction company reported $2.50 EPS for the quarter, beating the consensus estimate of $1.99 by $0.51. Argan had a return on equity of 32.61% and a net margin of 12.73%.The firm had revenue of $237.74 million for the quarter, compared to analyst estimates of $243.97 million. During the same quarter last year, the firm posted $1.31 earnings per share. The business's revenue for the quarter was up 4.7% on a year-over-year basis.

Argan Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Thursday, October 23rd will be given a $0.50 dividend. The ex-dividend date of this dividend is Thursday, October 23rd. This represents a $2.00 annualized dividend and a yield of 0.8%. This is an increase from Argan's previous quarterly dividend of $0.38. Argan's dividend payout ratio is presently 18.03%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on AGX shares. Kepler Capital Markets downgraded Argan from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 28th. Lake Street Capital raised their price objective on Argan from $236.00 to $260.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Wall Street Zen raised Argan from a "hold" rating to a "buy" rating in a research note on Friday, September 5th. JPMorgan Chase & Co. initiated coverage on Argan in a research note on Monday, July 21st. They issued a "neutral" rating and a $220.00 target price on the stock. Finally, Glj Research initiated coverage on Argan in a research note on Monday. They issued a "hold" rating and a $251.00 price objective on the stock. One research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Argan has a consensus rating of "Hold" and an average price target of $220.25.

Hedge Funds Weigh In On Argan

Several institutional investors have recently made changes to their positions in the company. Osaic Holdings Inc. grew its holdings in shares of Argan by 89.1% during the second quarter. Osaic Holdings Inc. now owns 11,146 shares of the construction company's stock worth $2,458,000 after buying an additional 5,251 shares in the last quarter. Orion Porfolio Solutions LLC acquired a new stake in shares of Argan during the second quarter worth about $660,000. Squarepoint Ops LLC acquired a new stake in shares of Argan during the second quarter worth about $3,503,000. Ranger Investment Management L.P. acquired a new stake in Argan in the second quarter valued at approximately $2,948,000. Finally, Advisory Services Network LLC raised its holdings in Argan by 174.7% in the second quarter. Advisory Services Network LLC now owns 6,711 shares of the construction company's stock valued at $1,480,000 after acquiring an additional 4,268 shares in the last quarter. 79.43% of the stock is owned by hedge funds and other institutional investors.

Argan Company Profile

Argan, Inc, through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The company operates through Power Services, Industrial Services, and Telecom Services segments. The Power Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 18 gigawatts of power-generating capacity.