Argan (NYSE:AGX) Reaches New 12-Month High – Still a Buy?

Argan, Inc. (NYSE:AGX)’s share price reached a new 52-week high on Tuesday . The company traded as high as $450.00 and last traded at $447.6750, with a volume of 401102 shares changing hands. The stock had previously closed at $441.71.

Analysts Set New Price Targets

AGX has been the topic of several analyst reports. Glj Research raised shares of Argan from a “hold” rating to a “buy” rating and increased their target price for the stock from $251.00 to $369.00 in a research report on Monday, November 10th. The Goldman Sachs Group started coverage on Argan in a report on Tuesday, November 11th. They set a “buy” rating and a $397.00 price objective on the stock. Zacks Research lowered Argan from a “strong-buy” rating to a “hold” rating in a report on Tuesday, February 3rd. CJS Securities raised Argan to a “hold” rating in a research report on Thursday, December 11th. Finally, JPMorgan Chase & Co. reissued a “neutral” rating and issued 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 given a Hold rating to the company. According to data from MarketBeat, Argan has an average rating of “Hold” and an average target price of $355.20.

Argan Trading Up 1.4%

The firm has a market capitalization of $6.21 billion, a price-to-earnings ratio of 52.73 and a beta of 0.63. The stock has a fifty day moving average price of $355.97 and a 200-day moving average price of $309.47.

Argan (NYSE:AGX) last released its quarterly earnings data on Thursday, December 4th. The construction company reported $2.17 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $251.50 million. During the same period in the prior year, the company posted $2.00 earnings per share. The business’s revenue for the quarter was down 2.3% compared to the same quarter last year.

Argan Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Thursday, January 22nd were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, January 22nd. Argan’s dividend payout ratio (DPR) is currently 23.56%.

Insider Activity at Argan

In other news, Director Peter W. Getsinger sold 6,595 shares of Argan stock in a transaction that occurred on Thursday, January 8th. The shares were sold at an average price of $313.71, for a total value of $2,068,917.45. Following the completion of the transaction, the director owned 7,847 shares in the company, valued at approximately $2,461,682.37. The trade was a 45.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director William F. Leimkuhler sold 11,044 shares of the stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $379.15, for a total value of $4,187,332.60. Following the sale, the director owned 49,939 shares in the company, valued at approximately $18,934,371.85. This trade represents a 18.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 55,915 shares of company stock valued at $20,182,794. Insiders own 6.69% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Millennium Management LLC increased its stake in shares of Argan by 12.2% in the 1st quarter. Millennium Management LLC now owns 117,805 shares of the construction company’s stock valued at $15,452,000 after buying an additional 12,854 shares during the period. NewEdge Advisors LLC raised its stake in shares of Argan by 118.3% during the first quarter. NewEdge Advisors LLC now owns 5,316 shares of the construction company’s stock worth $697,000 after buying an additional 2,881 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Argan by 13.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 35,567 shares of the construction company’s stock valued at $4,665,000 after acquiring an additional 4,196 shares during the last quarter. Intech Investment Management LLC grew its holdings in Argan by 37.3% during the 1st quarter. Intech Investment Management LLC now owns 8,985 shares of the construction company’s stock worth $1,179,000 after acquiring an additional 2,442 shares during the period. Finally, Carnegie Investment Counsel bought a new stake in shares of Argan during the 2nd quarter valued at $360,000. 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.