Argan (NYSE:AGX) Hits New 12-Month High – Should You Buy?

Shares of Argan, Inc. (NYSE:AGX) hit a new 52-week high on Tuesday . The stock traded as high as $450.00 and last traded at $447.6750, with a volume of 401102 shares trading hands. The stock had previously closed at $441.71.

Analyst Upgrades and Downgrades

AGX has been the topic of several analyst reports. Lake Street Capital downgraded shares of Argan from a “buy” rating to a “hold” rating and lifted their price target for the stock from $260.00 to $325.00 in a research note on Friday, December 5th. The Goldman Sachs Group started coverage on shares of Argan in a research report on Tuesday, November 11th. They set a “buy” rating and a $397.00 price target on the stock. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $370.00 price objective (up from $315.00) on shares of Argan in a report on Monday, December 1st. CJS Securities raised Argan to a “hold” rating in a report on Thursday, December 11th. Finally, Glj Research upgraded Argan from a “hold” rating to a “buy” rating and boosted their price objective for the company from $251.00 to $369.00 in a research report on Monday, November 10th. Three equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $355.20.

Argan Stock Performance

The stock has a market cap of $6.27 billion, a price-to-earnings ratio of 53.27 and a beta of 0.63. The company’s 50 day simple moving average is $364.23 and its 200 day simple moving average is $312.82.

Argan (NYSE:AGX) last released its earnings results on Thursday, December 4th. The construction company reported $2.17 earnings per share for the quarter, topping analysts’ consensus estimates of $1.82 by $0.35. The firm had revenue of $251.15 million during the quarter, compared to the consensus estimate of $251.50 million. Argan had a return on equity of 31.38% and a net margin of 13.11%.The firm’s revenue for the quarter was down 2.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.00 earnings per share.

Argan Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Thursday, January 22nd were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Thursday, January 22nd. Argan’s payout ratio is presently 23.56%.

Insider Activity at Argan

In other Argan news, Director John Ronald Jr. Jeffrey sold 5,000 shares of the business’s stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $360.78, for a total transaction of $1,803,900.00. Following the sale, the director owned 8,192 shares in the company, valued at approximately $2,955,509.76. The trade was a 37.90% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Peter W. Getsinger sold 6,595 shares of the business’s stock in a transaction that occurred on Thursday, January 8th. The shares were sold at an average price of $313.71, for a total transaction of $2,068,917.45. Following the sale, the director owned 7,847 shares in the company, valued at $2,461,682.37. This represents a 45.67% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 55,915 shares of company stock worth $20,182,794. 6.69% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Argan

Hedge funds have recently bought and sold shares of the business. Aster Capital Management DIFC Ltd purchased a new stake in Argan in the 3rd quarter worth approximately $25,000. Danske Bank A S acquired a new position in shares of Argan during the 3rd quarter valued at about $27,000. Montag A & Associates Inc. bought a new position in shares of Argan in the fourth quarter valued at approximately $30,000. University of Texas Texas AM Investment Management Co. acquired a new position in Argan in the 4th quarter valued at $30,000. Finally, Hilton Head Capital Partners LLC bought a new position in Argan in the 4th quarter worth $31,000. 79.43% of the stock is owned by hedge funds and other institutional investors.

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.