Argan (NYSE:AGX) Reaches New 52-Week High – Still a Buy?

Argan, Inc. (NYSE:AGX) shares hit a new 52-week high during trading on Thursday . The company traded as high as $743.18 and last traded at $733.8930, with a volume of 68282 shares changing hands. The stock had previously closed at $719.92.

Analyst Ratings Changes

AGX has been the topic of a number of analyst reports. Freedom Capital upgraded shares of Argan to a “hold” rating in a research report on Tuesday, March 10th. Wall Street Zen upgraded shares of Argan from a “hold” rating to a “buy” rating in a research report on Saturday, March 28th. The Goldman Sachs Group increased their target price on shares of Argan from $399.00 to $518.00 and gave the stock a “buy” rating in a research report on Friday, March 27th. JPMorgan Chase & Co. upgraded shares of Argan from a “neutral” rating to an “overweight” rating and set a $550.00 target price on the stock in a research report on Friday, March 27th. Finally, Lake Street Capital increased their target price on shares of Argan from $325.00 to $375.00 and gave the stock a “hold” rating in a research report on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Argan has an average rating of “Moderate Buy” and an average price target of $425.40.

Argan Trading Down 2.9%

The stock’s 50-day simple moving average is $574.50 and its 200-day simple moving average is $432.07. The stock has a market cap of $10.03 billion, a price-to-earnings ratio of 73.85 and a beta of 0.61.

Argan (NYSE:AGX) last posted its quarterly earnings results on Thursday, March 26th. The construction company reported $3.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.99 by $1.48. The business had revenue of $262.05 million for the quarter, compared to analyst estimates of $255.32 million. Argan had a net margin of 14.59% and a return on equity of 33.62%. The firm’s revenue for the quarter was up 12.7% on a year-over-year basis. During the same quarter last year, the business posted $2.22 EPS. On average, equities research analysts forecast that Argan, Inc. will post 11.44 earnings per share for the current year.

Argan Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Wednesday, April 22nd were given a dividend of $0.50 per share. The ex-dividend date was Wednesday, April 22nd. This represents a $2.00 annualized dividend and a dividend yield of 0.3%. Argan’s dividend payout ratio (DPR) is currently 20.53%.

Argan announced that its board has initiated a stock buyback program on Wednesday, April 8th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the construction company to reacquire up to 2.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Argan

In related news, Director Alexander Lisa Larroque sold 350 shares of the stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $630.58, for a total transaction of $220,703.00. Following the sale, the director owned 350 shares in the company, valued at approximately $220,703. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director John Ronald Jr. Jeffrey sold 2,698 shares of the stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $664.84, for a total transaction of $1,793,738.32. Following the sale, the director owned 2,000 shares in the company, valued at $1,329,680. This represents a 57.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 64,543 shares of company stock worth $39,054,956 in the last three months. Company insiders own 6.69% of the company’s stock.

Institutional Trading of Argan

Several large investors have recently made changes to their positions in the company. International Assets Investment Management LLC boosted its position in shares of Argan by 2.0% during the 1st quarter. International Assets Investment Management LLC now owns 775 shares of the construction company’s stock worth $443,000 after acquiring an additional 15 shares in the last quarter. PNC Financial Services Group Inc. lifted its stake in Argan by 5.9% in the 4th quarter. PNC Financial Services Group Inc. now owns 541 shares of the construction company’s stock valued at $170,000 after purchasing an additional 30 shares during the last quarter. Baader Bank Aktiengesellschaft lifted its stake in Argan by 0.6% in the 1st quarter. Baader Bank Aktiengesellschaft now owns 5,030 shares of the construction company’s stock valued at $2,734,000 after purchasing an additional 30 shares during the last quarter. National Bank of Canada FI lifted its stake in Argan by 26.7% in the 3rd quarter. National Bank of Canada FI now owns 147 shares of the construction company’s stock valued at $40,000 after purchasing an additional 31 shares during the last quarter. Finally, Pallas Capital Advisors LLC lifted its stake in Argan by 1.3% in the 4th quarter. Pallas Capital Advisors LLC now owns 2,564 shares of the construction company’s stock valued at $803,000 after purchasing an additional 34 shares during the last quarter. Institutional investors and hedge funds own 79.43% of the company’s stock.

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.