Argan Outperforms Construction Peers YTD with 111.8% Return

Argan (AGX) has outperformed other Construction stocks this year with a 111.8% year-to-date return, compared to an average of 5.7% for the sector. The company's full-year earnings estimate has increased 11.1% in the past quarter, and its Zacks Rank is #1 (Strong Buy). AGX is a member of the Building Products - Miscellaneous industry, which has gained an average of 5.8% this year.

Argan, Inc. (AGX) has demonstrated robust performance in the construction sector this year, with a year-to-date return of 111.8% compared to the sector's average of 5.7%. The company's full-year earnings estimate has increased by 11.1% in the past quarter, and its Zacks Rank stands at #1 (Strong Buy) Charles Edwin Iv Collins Sells 10,000 Shares of Argan (NYSE:AGX) Stock^[1]. Argan's success has been bolstered by its membership in the Building Products - Miscellaneous industry, which has seen an average year-to-date gain of 5.8%.

Despite these positive indicators, recent trading activity by the company's CEO, Charles Edwin Iv Collins, has raised some eyebrows. On October 15th, Collins sold 10,000 shares of Argan stock at an average price of $309.37, resulting in a 32.25% decrease in his ownership. This transaction, totaling approximately $3.09 million, follows several other sales made by Collins over the past few months .

Argan's stock has experienced a decline, trading at $283.25, despite the company reporting a net margin of 12.73% and beating analysts' EPS estimates with $2.50 last quarter. The company's 12-month low is $101.02, and its 12-month high is $320.00. The stock's 50-day moving average price is $247.52, and its 200-day moving average price is $211.08. The firm has a market capitalization of $3.91 billion, a price-to-earnings ratio of 34.04, and a beta of 0.64.

Institutional investors have been active in Argan as well. Vanguard Group Inc., American Century Companies Inc., First Trust Advisors LP, State Street Corp, and Geode Capital Management LLC have all increased their holdings in the company during the first and second quarters of this year. Institutional investors now own 79.43% of Argan's stock .

Argan's recent dividend increase, from $0.38 to $0.50 per share, further signals the company's financial health. The new dividend represents a $2.00 annualized dividend and a yield of 0.7%. The ex-dividend date is October 23rd, and the payout ratio is 18.03% .

Several research firms have issued positive reports on Argan. UBS Group, JPMorgan Chase & Co., Lake Street Capital, Glj Research, and Wall Street Zen have all upgraded or initiated coverage on the stock, with an average rating of "Moderate Buy" and an average target price of $258.20 .

While Argan's performance and recent trading activity warrant attention, investors should consider the potential impact of Collins' sales on the company's stock price and his overall investment strategy. As always, it is essential to conduct thorough research and consider multiple factors before making investment decisions.