Argan (NYSE:AGX) Trading 10.6% Higher Following Earnings Beat

Shares of Argan, Inc. (NYSE:AGX) rose 10.6% during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $742.75 and last traded at $762.5960. Approximately 149,805 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 401,701 shares. The stock had previously closed at $689.43.

The construction company reported $3.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.27 by $0.97. The firm had revenue of $290.95 million for the quarter, compared to analyst estimates of $256.03 million. Argan had a return on equity of 33.62% and a net margin of 14.59%.The business’s revenue was up 50.2% on a year-over-year basis. During the same quarter last year, the company posted $1.60 earnings per share.

Argan Announces Dividend

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

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

Argan News Roundup

Here are the key news stories impacting Argan this week:

• Positive Sentiment: Argan reported first-quarter EPS of $3.24, well above the $2.27 consensus, while revenue rose 50.2% year over year to $290.95 million, also beating estimates. Argan, Inc. Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management said it expects to add new projects over the next 10 to 18 months, reinforcing confidence that Argan’s backlog and growth pipeline can remain strong. Argan anticipates adding new projects over the next 10 to 18 months while buyback authorization rises to $200M
• Positive Sentiment: The board expanded the share repurchase authorization to $200 million, which can support earnings per share and signals confidence in future cash generation. Argan anticipates adding new projects over the next 10 to 18 months while buyback authorization rises to $200M
• Positive Sentiment: Investor commentary highlighted strong demand tied to AI/data center power infrastructure, a theme that may continue to drive orders and revenue growth. Argan Inc (AGX) Q1 2027 Earnings Call Highlights
• Neutral Sentiment: Multiple earnings-call transcripts, presentations, and snapshot articles reinforced the same upbeat quarter, but added little new information beyond the headline beat. Argan (AGX) Q1 2027 Earnings Call Transcript

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. JPMorgan Chase & Co. upgraded Argan from a “neutral” rating to an “overweight” rating and set a $550.00 price target for the company in a research note on Friday, March 27th. Zacks Research cut shares of Argan from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 26th. The Goldman Sachs Group upped their price objective on shares of Argan from $399.00 to $518.00 and gave the stock a “buy” rating in a research report on Friday, March 27th. Lake Street Capital restated a “hold” rating on shares of Argan in a research note on Friday. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Argan in a report on Monday, April 6th. Four analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $425.40.

Insiders Place Their Bets

In related news, Director Alexander Lisa Larroque sold 350 shares of Argan stock in a transaction that occurred 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 sale, the director directly owned 350 shares in the company, valued at $220,703. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Charles Edwin Iv Collins sold 11,068 shares of the company’s stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $621.61, for a total value of $6,879,979.48. Following the transaction, the chief executive officer directly owned 30,320 shares in the company, valued at $18,847,215.20. This represents a 26.74% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 64,543 shares of company stock worth $39,054,956. Corporate insiders own 6.69% of the company’s stock.

Institutional Investors Weigh In On Argan

Institutional investors have recently made changes to their positions in the stock. DV Trading LLC purchased a new position in shares of Argan in the 1st quarter valued at about $327,000. CTC Alternative Strategies Ltd. purchased a new stake in Argan during the first quarter worth about $301,000. Norris Financial Group LLC purchased a new stake in Argan during the first quarter worth about $4,850,000. Western Wealth Management LLC acquired a new position in Argan during the first quarter worth about $25,000. Finally, Bull Harbor Capital LLC acquired a new position in Argan during the first quarter worth about $264,000. 79.43% of the stock is currently owned by hedge funds and other institutional investors.

Argan Stock Up 12.1%

The company has a market capitalization of $10.78 billion, a PE ratio of 78.93 and a beta of 0.58. The stock’s fifty day simple moving average is $631.10 and its 200-day simple moving average is $466.66.

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.