Argan (NYSE:AGX) Director Peter Getsinger Sells 4,728 Shares of Stock

Argan, Inc. (NYSE:AGX) Director Peter Getsinger sold 4,728 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $708.65, for a total value of $3,350,497.20. Following the transaction, the director directly owned 6,880 shares in the company, valued at $4,875,512. This represents a 40.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.

Argan Price Performance

Shares of NYSE:AGX opened at $720.28 on Thursday. The business’s 50-day moving average is $653.49 and its 200 day moving average is $485.14. Argan, Inc. has a 1 year low of $193.82 and a 1 year high of $779.00. The firm has a market capitalization of $10.10 billion, a P/E ratio of 63.29 and a beta of 0.58.

Argan (NYSE:AGX) last announced its earnings results on Thursday, June 4th. The construction company reported $3.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.31 by $0.93. Argan had a return on equity of 36.89% and a net margin of 15.48%.The company had revenue of $290.95 million for the quarter, compared to analyst estimates of $256.03 million. During the same period in the prior year, the company posted $1.60 EPS. The firm’s quarterly revenue was up 50.2% compared to the same quarter last year. On average, analysts expect that Argan, Inc. will post 12.6 EPS for the current year.

Argan declared that its Board of Directors has initiated a stock buyback plan on Wednesday, April 8th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the construction company to purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Argan Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, July 23rd will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend is Thursday, July 23rd. Argan’s dividend payout ratio is currently 17.57%.

Key Headlines Impacting Argan

Here are the key news stories impacting Argan this week:

• Positive Sentiment: Argan’s recent earnings report was strong, with quarterly EPS of $3.24 beating estimates by $0.93 and revenue rising 50.2% year over year, reinforcing confidence in the company’s growth and profitability. Argan stock performance and earnings details
• Positive Sentiment: Analysts highlighted Argan’s backlog, noting it is 79% gas-focused and positioned to benefit from rising power demand, which could support future revenue visibility and project growth. Zacks article on backlog and power demand
• Neutral Sentiment: Argan also has support from its capital return actions, including a quarterly dividend and a $200 million share buyback authorization, both of which can help underpin the stock over time. Argan insider trades and company actions
• Negative Sentiment: Multiple insiders sold shares over the past few days, including CEO David Hibbert Watson, Chairman William F. Griffin, Jr., and directors Peter W. Getsinger and Karen Sweeney, which may be pressuring sentiment because heavy insider selling often raises valuation caution. Insider selling alert for Argan

Wall Street Analyst Weigh In

Several brokerages recently issued reports on AGX. JPMorgan Chase & Co. raised 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. Wall Street Zen raised Argan from a “hold” rating to a “buy” rating in a research report on Saturday, March 28th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Argan in a research report on Monday, April 6th. Zacks Research lowered Argan from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 26th. Finally, The Goldman Sachs Group increased their price objective on Argan from $399.00 to $518.00 and gave the company a “buy” rating in a report on Friday, March 27th. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Argan presently has an average rating of “Moderate Buy” and a consensus price target of $470.40.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Empowered Funds LLC acquired a new position in shares of Argan in the first quarter valued at about $692,000. DV Trading LLC acquired a new position in shares of Argan in the first quarter valued at about $327,000. CTC Alternative Strategies Ltd. acquired a new position in shares of Argan in the first quarter valued at about $301,000. Norris Financial Group LLC acquired a new position in shares of Argan in the first quarter valued at about $4,850,000. Finally, Western Wealth Management LLC acquired a new position in shares of Argan in the first quarter valued at about $25,000. 79.43% of the stock is owned by institutional investors and hedge funds.

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.