Argan (NYSE:AGX) Issues Earnings Results, Beats Expectations By $0.97 EPS

Argan (NYSE:AGX) released its quarterly earnings results on Thursday. The construction company reported $3.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.27 by $0.97, FiscalAI reports. Argan had a net margin of 14.59% and a return on equity of 33.62%. The firm had revenue of $290.95 million for the quarter, compared to analysts’ expectations of $256.03 million.

Argan Stock Performance

Shares of NYSE AGX traded up $3.26 during trading on Thursday, hitting $689.63. 357,281 shares of the company were exchanged, compared to its average volume of 403,859. Argan has a 12-month low of $193.82 and a 12-month high of $748.50. The company has a fifty day moving average price of $626.20 and a 200-day moving average price of $464.28. The firm has a market capitalization of $9.62 billion, a PE ratio of 70.80 and a beta of 0.58.

Argan Announces Dividend

The business also recently declared 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 payout ratio is currently 20.53%.

Argan declared that its board has approved a stock repurchase program on Wednesday, April 8th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the construction company to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

AGX has been the topic of several recent research reports. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Argan in a research note on Monday, April 6th. Wall Street Zen raised shares of Argan from a “hold” rating to a “buy” rating in a research note on Saturday, March 28th. Zacks Research cut shares of Argan from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 26th. The Goldman Sachs Group lifted their target price on shares of Argan from $399.00 to $518.00 and gave the stock a “buy” rating in a research note on Friday, March 27th. Finally, JPMorgan Chase & Co. raised shares of Argan from a “neutral” rating to an “overweight” rating and set a $550.00 target price on the stock in a research note on Friday, March 27th. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $425.40.

Insider Buying and Selling at Argan

In related news, Director John Ronald Jr. Jeffrey sold 4,556 shares of the business’s stock in a transaction dated Tuesday, March 31st. The shares were sold at an average price of $539.85, for a total value of $2,459,556.60. Following the sale, the director directly owned 3,636 shares in the company, valued at approximately $1,962,894.60. The trade was a 55.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Peter W. Getsinger sold 3,000 shares of the business’s stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $628.36, for a total transaction of $1,885,080.00. Following the completion of the sale, the director owned 6,847 shares in the company, valued at approximately $4,302,380.92. This trade represents a 30.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 64,543 shares of company stock worth $39,054,956. Corporate insiders own 6.69% of the company’s stock.

Institutional Trading of Argan

Several institutional investors and hedge funds have recently bought and sold shares of the stock. First Trust Advisors LP raised its holdings in Argan by 7.1% in the 4th quarter. First Trust Advisors LP now owns 599,149 shares of the construction company’s stock valued at $187,725,000 after buying an additional 39,683 shares during the period. Maverick Capital Ltd. purchased a new stake in Argan in the 4th quarter valued at about $137,503,000. State Street Corp raised its holdings in Argan by 1.7% in the 2nd quarter. State Street Corp now owns 324,356 shares of the construction company’s stock valued at $71,514,000 after buying an additional 5,575 shares during the period. Invesco Ltd. raised its holdings in Argan by 29.9% in the 3rd quarter. Invesco Ltd. now owns 298,582 shares of the construction company’s stock valued at $80,632,000 after buying an additional 68,689 shares during the period. Finally, Jacobs Levy Equity Management Inc. raised its holdings in Argan by 69.7% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 259,872 shares of the construction company’s stock valued at $81,423,000 after buying an additional 106,757 shares during the period. 79.43% of the stock is currently 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.