Argan, Inc. (NYSE:AGX) Declares Quarterly Dividend of $0.70

Argan, Inc. (NYSE:AGX) declared a quarterly dividend on Wednesday, September 9th. Shareholders of record on Thursday, October 22nd will be paid a dividend of 0.70 per share by the construction company on Friday, October 30th. This represents a c) dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, October 22nd. This is a 40.0% increase from Argan’s previous quarterly dividend of $0.50.

Argan has decreased its dividend by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 2 years. Argan has a dividend payout ratio of 27.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Argan to earn $17.08 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 11.7%.

Argan Trading Down 7.8%

NYSE:AGX opened at $402.62 on Thursday. The firm has a market capitalization of $5.65 billion, a PE ratio of 31.85, a price-to-earnings-growth ratio of 3.25 and a beta of 0.57. The stock has a 50 day moving average of $550.96 and a 200-day moving average of $584.70. Argan has a 52 week low of $219.05 and a 52 week high of $805.75.

Argan (NYSE:AGX) last announced its quarterly earnings results on Wednesday, September 2nd. The construction company reported $3.76 earnings per share for the quarter, topping analysts’ consensus estimates of $2.64 by $1.12. The business had revenue of $383.98 million for the quarter, compared to analysts’ expectations of $300.53 million. Argan had a return on equity of 38.51% and a net margin of 15.09%.The business’s quarterly revenue was up 61.5% on a year-over-year basis. During the same period in the prior year, the firm earned $2.50 EPS. As a group, analysts predict that Argan will post 13.44 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have weighed in on AGX shares. Wall Street Zen raised Argan from a “hold” rating to a “buy” rating in a research report on Saturday, September 5th. Weiss Ratings raised shares of Argan from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, August 27th. Freedom Broker upgraded shares of Argan from a “hold” rating to a “strong-buy” rating in a research report on Friday, September 4th. Piper Sandler began coverage on shares of Argan in a report on Tuesday. They issued an “underweight” rating and a $273.00 price objective on the stock. Finally, Lake Street Capital upgraded shares of Argan from a “hold” rating to a “buy” rating and set a $600.00 price objective on the stock in a research report on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $437.50.

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.