Argan, Inc. $AGX Position Cut by AltraVue Capital LLC

AltraVue Capital LLC cut its stake in shares of Argan, Inc. (NYSE:AGX) by 42.3% during the fourth quarter, HoldingsChannel reports. The firm owned 142,942 shares of the construction company’s stock after selling 104,600 shares during the quarter. Argan comprises 3.7% of AltraVue Capital LLC’s holdings, making the stock its 10th largest position. AltraVue Capital LLC’s holdings in Argan were worth $44,787,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Aster Capital Management DIFC Ltd purchased a new stake in Argan during the third quarter valued at approximately $25,000. Montag A & Associates Inc. purchased a new stake in shares of Argan in the fourth quarter worth approximately $30,000. Danske Bank A S purchased a new stake in shares of Argan in the third quarter worth approximately $27,000. Accredited Wealth Management LLC purchased a new stake in shares of Argan in the third quarter worth approximately $32,000. Finally, USA Financial Formulas purchased a new stake in shares of Argan in the fourth quarter worth approximately $40,000. 79.43% of the stock is currently owned by hedge funds and other institutional investors.

Argan Stock Up 0.9%

Shares of NYSE:AGX opened at $695.56 on Friday. Argan, Inc. has a 52-week low of $193.82 and a 52-week high of $779.00. The stock has a market cap of $9.70 billion, a P/E ratio of 61.12 and a beta of 0.58. The business’s 50 day moving average is $636.32 and its 200 day moving average is $468.26.

Argan (NYSE:AGX) last announced its quarterly earnings results on Thursday, June 4th. The construction company reported $3.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.27 by $0.97. Argan had a return on equity of 37.94% and a net margin of 15.48%.The business had revenue of $290.95 million for the quarter, compared to the consensus estimate of $256.03 million. During the same period last year, the business posted $1.60 EPS. The business’s revenue was up 50.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Argan, Inc. will post 11.44 EPS for the current fiscal year.

Argan Announces Dividend

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

Argan announced that its board has authorized a share buyback program on Wednesday, April 8th that allows the company to repurchase $200.00 million in shares. This repurchase authorization allows the construction company to buy up to 2.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on AGX shares. Weiss Ratings reiterated a “buy (b)” rating on shares of Argan in a report on Monday, April 6th. Lake Street Capital increased their price target on Argan from $375.00 to $600.00 and gave the stock a “hold” rating in a report on Friday. The Goldman Sachs Group increased their price target on Argan from $399.00 to $518.00 and gave the stock a “buy” rating in a report on Friday, March 27th. Freedom Capital raised Argan to a “hold” rating in a research note on Tuesday, March 10th. Finally, Zacks Research cut Argan from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 26th. Four analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $470.40.

Insiders Place Their Bets

In other news, Director John Ronald Jr. Jeffrey sold 4,556 shares of Argan stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $539.85, for a total value of $2,459,556.60. Following the transaction, the director directly owned 3,636 shares in the company, valued at approximately $1,962,894.60. This trade represents a 55.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO David Hibbert Watson sold 19,310 shares of Argan stock in a transaction on Friday, April 17th. The stock was sold at an average price of $602.11, for a total transaction of $11,626,744.10. Following the completion of the transaction, the chief executive officer directly owned 49,998 shares in the company, valued at $30,104,295.78. This represents a 27.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 64,543 shares of company stock worth $39,054,956. Insiders own 6.69% of the company’s stock.

Trending Headlines about Argan

Here are the key news stories impacting Argan this week:

• Positive Sentiment: Argan beat expectations with first-quarter earnings of $3.24 per share versus $2.27 expected, while revenue of $290.95 million also topped estimates. Revenue rose 50.2% year over year, highlighting continued strength in the company’s power-project construction business. Article Title
• Positive Sentiment: Management said Argan expects to add new projects over the next 10 to 18 months, reinforcing investor confidence in its backlog-driven growth outlook. Article Title
• Positive Sentiment: The board increased the share repurchase authorization to $200 million, which can support earnings per share and signals confidence in the company’s cash generation. Article Title
• Positive Sentiment: Investor commentary also pointed to a strong power-project backlog and record quarterly results, suggesting the company is benefiting from demand tied to AI/data-center power needs and broader electrification trends. Article Title
• Neutral Sentiment: Several earnings-call transcripts and presentation posts largely reiterate the same quarterly results and management commentary, adding context but not materially changing the investment story. Article Title
• Neutral Sentiment: Market coverage also notes the stock had already rallied ahead of earnings, so part of the move may reflect investors positioning for strong results and shareholder returns. Article Title

Argan 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.