William Leimkuhler Sells 5,000 Shares of Argan (NYSE:AGX) Stock

Key Points

• Insider sale: Director William Leimkuhler sold 5,000 shares on April 28 at an average of $617.41 for $3,087,050, reducing his stake by 12.05% to 36,495 shares valued at about $22.53M.
• Strong quarter & capital returns: Argan beat Q expectations (EPS $3.47 vs. $1.99; revenue $262.05M, up 12.7%), and the board approved a $200 million buyback (up to 2.5% of shares) while declaring a $0.50 quarterly dividend.
• Shares trade near $628.56 with a market cap of $8.77B and a P/E of ~64.5; analysts rate the stock a "Moderate Buy" with a consensus target of $425.40 even as some firms raised targets to $518–$550.

Argan, Inc. (NYSE:AGX - Get Free Report) Director William Leimkuhler sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $617.41, for a total value of $3,087,050.00. Following the transaction, the director owned 36,495 shares of the company's stock, valued at approximately $22,532,377.95. This represents a 12.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Argan Price Performance

Shares of NYSE AGX traded down $2.15 during midday trading on Wednesday, hitting $628.56. 218,488 shares of the company's stock were exchanged, compared to its average volume of 440,860. The stock's 50 day moving average price is $522.87 and its 200-day moving average price is $403.12. The firm has a market cap of $8.77 billion, a P/E ratio of 64.53 and a beta of 0.46. Argan, Inc. has a twelve month low of $142.97 and a twelve month high of $683.12.

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

Argan announced that its Board of Directors has approved a stock buyback program on Wednesday, April 8th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the construction company to buy up to 2.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board of directors believes its shares are undervalued.

Argan Dividend Announcement

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

Institutional Investors Weigh In On Argan

Several hedge funds have recently modified their holdings of the stock. Emerald Mutual Fund Advisers Trust acquired a new stake in shares of Argan during the third quarter valued at approximately $14,138,000. Thames Capital Management LLC purchased a new stake in shares of Argan in the 3rd quarter valued at approximately $11,175,000. Versor Investments LP acquired a new position in Argan in the 3rd quarter worth approximately $971,000. Leavell Investment Management Inc. boosted its stake in Argan by 125.3% in the 3rd quarter. Leavell Investment Management Inc. now owns 12,505 shares of the construction company's stock worth $3,377,000 after purchasing an additional 6,955 shares during the period. Finally, TD Asset Management Inc purchased a new position in Argan during the 3rd quarter worth approximately $35,629,000. 79.43% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on AGX shares. The Goldman Sachs Group boosted their target price on Argan from $399.00 to $518.00 and gave the stock a "buy" rating in a report on Friday, March 27th. Freedom Capital raised Argan to a "hold" rating in a report on Tuesday, March 10th. Lake Street Capital boosted their target price on Argan from $325.00 to $375.00 and gave the stock a "hold" rating in a report on Friday, March 27th. Wall Street Zen raised Argan from a "hold" rating to a "buy" rating in a report on Saturday, March 28th. Finally, JPMorgan Chase & Co. raised Argan from a "neutral" rating to an "overweight" rating and set a $550.00 target price on the stock in a report on Friday, March 27th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Argan currently has an average rating of "Moderate Buy" and a consensus target price of $425.40.

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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