Argan (NYSE:AGX) Cut to “Hold” at Zacks Research

Zacks Research downgraded shares of Argan (NYSE:AGX) from a strong-buy rating to a hold rating in a report released on Tuesday,Zacks.com reports.

Other analysts have also issued research reports about the company. Lake Street Capital lowered Argan from a “buy” rating to a “hold” rating and boosted their price target for the company from $260.00 to $325.00 in a report on Friday, December 5th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $370.00 price objective (up from $315.00) on shares of Argan in a research note on Monday, December 1st. CJS Securities upgraded shares of Argan to a “hold” rating in a research note on Thursday, December 11th. Glj Research raised shares of Argan from a “hold” rating to a “buy” rating and lifted their price target for the company from $251.00 to $369.00 in a report on Monday, November 10th. Finally, UBS Group set a $315.00 price objective on shares of Argan in a research note on Monday, October 13th. Three research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Argan presently has an average rating of “Hold” and an average target price of $355.20.

Argan Stock Down 2.8%

Argan stock opened at $344.40 on Tuesday. Argan has a 52-week low of $101.02 and a 52-week high of $400.00. The company has a market cap of $4.78 billion, a P/E ratio of 40.57 and a beta of 0.63. The business has a 50-day simple moving average of $339.95 and a two-hundred day simple moving average of $293.40.

Argan (NYSE:AGX) last posted its quarterly earnings data on Thursday, December 4th. The construction company reported $2.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.82 by $0.35. Argan had a net margin of 13.11% and a return on equity of 31.38%. The company had revenue of $251.15 million for the quarter, compared to the consensus estimate of $251.50 million. During the same quarter last year, the firm posted $2.00 earnings per share. The firm’s revenue 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. Shareholders 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 0.6%. The ex-dividend date was Thursday, January 22nd. Argan’s dividend payout ratio (DPR) is currently 23.56%.

Insider Activity

In other Argan news, Director William F. Leimkuhler sold 11,044 shares of the stock in a transaction on Friday, January 16th. The shares were sold at an average price of $379.15, for a total transaction of $4,187,332.60. Following the completion of the transaction, the director owned 49,939 shares in the company, valued at $18,934,371.85. This trade represents a 18.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director James W. Quinn sold 1,000 shares of Argan stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $328.04, for a total transaction of $328,040.00. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 55,915 shares of company stock worth $20,182,794. 6.69% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in AGX. Aster Capital Management DIFC Ltd purchased a new stake in Argan during the third quarter worth $25,000. Danske Bank A S bought a new position in shares of Argan in the 3rd quarter worth $27,000. Montag A & Associates Inc. bought a new position in shares of Argan in the 4th quarter worth $30,000. Accredited Wealth Management LLC purchased a new stake in shares of Argan during the 3rd quarter worth $32,000. Finally, USA Financial Formulas bought a new stake in Argan during the fourth quarter valued at about $40,000. Institutional investors own 79.43% of the company’s stock.

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.