Argan (NYSE:AGX) Reaches New 1-Year Low – Here’s Why

Shares of Argan, Inc. (NYSE:AGX) reached a new 52-week low on Thursday. The stock traded as low as $271.41 and last traded at $266.6490, with a volume of 17,122 shares traded. The stock had previously closed at $290.66.

Wall Street Analyst Weigh In

AGX has been the subject of a number of recent analyst reports. Weiss Ratings downgraded Argan from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 23rd. Freedom Broker upgraded Argan from a “hold” rating to a “strong-buy” rating in a research note on Friday, September 4th. Wall Street Zen raised shares of Argan from a “hold” rating to a “buy” rating in a report on Sunday, October 18th. Piper Sandler began coverage on shares of Argan in a research report on Tuesday, September 8th. They set an “underweight” rating and a $273.00 price target for the company. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Argan from $800.00 to $785.00 and set an “overweight” rating for the company in a report on Tuesday, September 29th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $509.00.

Argan Trading Down 9.4%

The company has a market capitalization of $3.69 billion, a P/E ratio of 20.86, a P/E/G ratio of 2.54 and a beta of 0.64. The company’s fifty day moving average is $380.07 and its 200 day moving average is $517.07.

Argan (NYSE:AGX) last issued its earnings results on Wednesday, September 2nd. The construction company reported $3.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.64 by $1.12. Argan had a net margin of 15.09% and a return on equity of 38.51%. The business had revenue of $383.98 million for the quarter, compared to analysts’ expectations of $300.53 million. During the same quarter in the previous year, the firm posted $2.50 EPS. The business’s revenue for the quarter was up 61.5% compared to the same quarter last year. Equities research analysts predict that Argan, Inc. will post 13.72 EPS for the current year.

Argan Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Thursday, October 22nd were issued a dividend of $0.70 per share. This is a positive change from Argan’s previous quarterly dividend of $0.50. The ex-dividend date of this dividend was Thursday, October 22nd. This represents a $2.80 dividend on an annualized basis and a yield of 1.1%. Argan’s payout ratio is currently 22.15%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Elite Wealth Management Inc. boosted its position in shares of Argan by 135.9% during the 3rd quarter. Elite Wealth Management Inc. now owns 22,348 shares of the construction company’s stock valued at $8,446,000 after acquiring an additional 12,875 shares during the last quarter. Point Nemo Capital LLC bought a new position in shares of Argan in the third quarter worth approximately $1,287,000. Formidable Asset Management LLC bought a new position in shares of Argan in the third quarter worth approximately $288,000. Alps Advisors Inc. increased its position in shares of Argan by 52.0% in the third quarter. Alps Advisors Inc. now owns 5,792 shares of the construction company’s stock worth $2,189,000 after purchasing an additional 1,982 shares during the last quarter. Finally, Ashton Thomas Private Wealth LLC raised its stake in Argan by 22.8% in the third quarter. Ashton Thomas Private Wealth LLC now owns 2,807 shares of the construction company’s stock valued at $1,061,000 after purchasing an additional 521 shares in the last quarter. Hedge funds and other institutional investors own 79.43% of the company’s stock.

Argan Company Profile

Argan, Inc is a holding company that provides engineering, procurement, construction, commissioning, operations and maintenance services for the power generation and renewable energy industries. Its work supports the development, construction and improvement of utility-scale energy infrastructure.

Through its subsidiaries, Argan offers engineering and construction management, project development support, procurement, installation, startup and commissioning services. Its projects have included natural gas-fired power plants, solar and other renewable energy facilities, and related industrial and electrical infrastructure.

Argan’s principal operating businesses include Gemma Power Systems, which provides engineering, procurement and construction services for power generation and renewable energy projects, and Atlantic Projects Company, which provides engineering, project management and construction-related services.