Argan (NYSE:AGX) Trading 12.2% Higher – Here’s Why

Argan, Inc. (NYSE:AGX) was up 12.2% during mid-day trading on Friday . The stock traded as high as $369.23 and last traded at $369.8480. Approximately 140,732 shares traded hands during mid-day trading, a decline of 49% from the average daily volume of 277,373 shares. The stock had previously closed at $329.66.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. Weiss Ratings restated a “buy (b+)” rating on shares of Argan in a report on Wednesday, December 24th. Lake Street Capital downgraded shares of Argan from a “buy” rating to a “hold” rating and boosted their target price for the company from $260.00 to $325.00 in a research note on Friday, December 5th. Zacks Research upgraded Argan from a “hold” rating to a “strong-buy” rating in a report on Thursday, December 11th. Glj Research upgraded Argan from a “hold” rating to a “buy” rating and lifted their price target for the company from $251.00 to $369.00 in a report on Monday, November 10th. Finally, JPMorgan Chase & Co. reissued a “neutral” rating and set a $370.00 price target (up from $315.00) on shares of Argan in a research report on Monday, December 1st. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $355.20.

Argan Price Performance

The firm has a market capitalization of $5.25 billion, a PE ratio of 44.62 and a beta of 0.64. The company has a fifty day moving average of $335.87 and a 200-day moving average of $277.10.

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

Argan Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 30th. Investors of record on Thursday, January 22nd will be issued a $0.50 dividend. The ex-dividend date is Thursday, January 22nd. This represents a $2.00 dividend on an annualized basis and a yield of 0.5%. Argan’s dividend payout ratio is currently 23.56%.

Insider Transactions at Argan

In other news, Director Peter W. Getsinger sold 6,595 shares of the stock in a transaction dated Thursday, January 8th. The stock was sold at an average price of $313.71, for a total transaction of $2,068,917.45. Following the transaction, the director owned 7,847 shares of the company’s stock, valued at approximately $2,461,682.37. This represents a 45.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director James W. Quinn sold 1,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $328.04, for a total value of $328,040.00. The SEC filing for this sale provides additional information. Insiders have sold a total of 24,664 shares of company stock worth $7,728,116 in the last 90 days. 6.69% of the stock is owned by insiders.

Institutional Investors Weigh In On Argan

A number of hedge funds have recently bought and sold shares of the company. Aster Capital Management DIFC Ltd acquired a new position in shares of Argan during the 3rd quarter worth about $25,000. Danske Bank A S acquired a new stake in Argan in the 3rd quarter valued at approximately $27,000. Accredited Wealth Management LLC bought a new position in Argan in the 3rd quarter worth approximately $32,000. USA Financial Formulas acquired a new position in shares of Argan during the fourth quarter worth approximately $40,000. Finally, National Bank of Canada FI lifted its holdings in shares of Argan by 26.7% during the third quarter. National Bank of Canada FI now owns 147 shares of the construction company’s stock worth $40,000 after buying an additional 31 shares during the last quarter. 79.43% of the stock is currently owned by institutional investors.

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.