Argan, Inc. (NYSE:AGX) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of Argan, Inc. (NYSE:AGX) have been given an average rating of “Moderate Buy” by the eight brokerages that are covering the company, Marketbeat Ratings reports. Four analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $470.40.

Several equities research analysts have issued reports on the company. JPMorgan Chase & Co. raised Argan from a “neutral” rating to an “overweight” rating and set a $550.00 target price for the company in a research note on Friday, March 27th. The Goldman Sachs Group raised their target price on Argan from $399.00 to $518.00 and gave the stock a “buy” rating in a research note on Friday, March 27th. Freedom Capital raised Argan to a “hold” rating in a research note on Tuesday, March 10th. Wall Street Zen raised Argan from a “hold” rating to a “buy” rating in a research note on Saturday, March 28th. Finally, Lake Street Capital raised their target price on Argan from $375.00 to $600.00 and gave the stock a “hold” rating in a research note on Friday.

Argan Stock Up 0.9%

AGX stock opened at $695.56 on Friday. The business has a fifty day moving average of $636.32 and a two-hundred day moving average of $468.26. The stock has a market cap of $9.70 billion, a price-to-earnings ratio of 61.12 and a beta of 0.58. Argan has a 52-week low of $193.82 and a 52-week high of $779.00.

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

Argan announced that its Board of Directors has authorized a share buyback plan on Wednesday, April 8th that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the construction company to purchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Argan Announces Dividend

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

Insiders Place Their Bets

In other news, Director Alexander Lisa Larroque sold 350 shares of Argan stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $630.58, for a total value of $220,703.00. Following the completion of the sale, the director directly owned 350 shares of the company’s stock, valued at approximately $220,703. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Peter W. Getsinger sold 3,000 shares of Argan stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $628.36, for a total value of $1,885,080.00. Following the completion of the sale, the director directly owned 6,847 shares of the company’s stock, valued at $4,302,380.92. The trade was a 30.47% 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 valued at $39,054,956. Insiders own 6.69% of the company’s stock.

Institutional Investors Weigh In On Argan

A number of institutional investors have recently modified their holdings of AGX. Maverick Capital Ltd. acquired a new stake in shares of Argan in the fourth quarter valued at $137,503,000. First Trust Advisors LP grew its stake in shares of Argan by 69.8% in the third quarter. First Trust Advisors LP now owns 559,466 shares of the construction company’s stock valued at $151,084,000 after buying an additional 230,073 shares in the last quarter. Balyasny Asset Management L.P. grew its stake in shares of Argan by 168.9% in the second quarter. Balyasny Asset Management L.P. now owns 253,365 shares of the construction company’s stock valued at $55,862,000 after buying an additional 159,149 shares in the last quarter. Invesco Ltd. grew its stake in shares of Argan by 172.5% in the second quarter. Invesco Ltd. now owns 229,893 shares of the construction company’s stock valued at $50,687,000 after buying an additional 145,516 shares in the last quarter. Finally, TD Asset Management Inc acquired a new stake in shares of Argan in the third quarter valued at $35,629,000. 79.43% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting 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 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.