Argan (NYSE:AGX) Hits New 12-Month High – Time to Buy?

Argan, Inc. (NYSE:AGX) hit a new 52-week high during trading on Thursday . The stock traded as high as $423.79 and last traded at $421.5910, with a volume of 807738 shares trading hands. The stock had previously closed at $371.47.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on AGX shares. Zacks Research cut shares of Argan from a “strong-buy” rating to a “hold” rating in a report on Tuesday, February 3rd. Lake Street Capital downgraded Argan from a “buy” rating to a “hold” rating and increased their price target for the stock from $260.00 to $325.00 in a research report on Friday, December 5th. CJS Securities raised Argan to a “hold” rating in a report on Thursday, December 11th. The Goldman Sachs Group began coverage on Argan in a report on Tuesday, November 11th. They set a “buy” rating and a $397.00 target price on the stock. Finally, JPMorgan Chase & Co. reiterated 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. Three investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $355.20.

Argan Trading Up 13.5%

The company has a market cap of $5.85 billion, a price-to-earnings ratio of 49.66 and a beta of 0.63. The business has a fifty day moving average of $340.85 and a two-hundred day moving average of $298.44.

Argan (NYSE:AGX) last posted its quarterly earnings data 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 company had revenue of $251.15 million during the quarter, compared to analysts’ expectations of $251.50 million. Argan had a net margin of 13.11% and a return on equity of 31.38%. The firm’s revenue for the quarter was down 2.3% on a year-over-year basis. During the same period in the prior year, the business posted $2.00 earnings per share.

Argan Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Thursday, January 22nd were paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.5%. The ex-dividend date was Thursday, January 22nd. Argan’s payout ratio is 23.56%.

Insider Transactions at Argan

In related news, Director Cynthia Flanders sold 19,000 shares of the stock in a transaction on Wednesday, January 21st. The stock was sold at an average price of $386.70, for a total value of $7,347,300.00. Following the completion of the transaction, the director directly owned 26,207 shares of the company’s stock, valued at approximately $10,134,246.90. This represents a 42.03% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director James W. Quinn sold 1,000 shares of the firm’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $328.04, for a total value of $328,040.00. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 55,915 shares of company stock valued at $20,182,794. Insiders own 6.69% of the company’s stock.

Institutional Investors Weigh In On Argan

Several hedge funds and other institutional investors have recently made changes to their positions in AGX. Aster Capital Management DIFC Ltd purchased a new stake in shares of Argan in the third quarter valued at about $25,000. Danske Bank A S acquired a new position in Argan in the 3rd quarter valued at about $27,000. Montag A & Associates Inc. purchased a new stake in shares of Argan in the 4th quarter valued at approximately $30,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Argan during the 4th quarter worth approximately $31,000. Finally, Accredited Wealth Management LLC purchased a new stake in shares of Argan during the 3rd quarter valued at approximately $32,000. Institutional investors and hedge funds own 79.43% of the company’s stock.

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.