Fintel reports that River Road Asset Management has filed a 13G/A form with the SEC disclosing ownership of 1.77MM shares of Argan, Inc. (AGX). This represents 13.0% of the company.
In their previous filing dated February 9, 2022 they reported 1.85MM shares and 11.80% of the company, a decrease in shares of 4.40% and an increase in total ownership of 1.20% (calculated as current - previous percent ownership).
Analyst Price Forecast Suggests 35.14% Upside
As of February 7, 2023, the average one-year price target for Argan is $54.57. The forecasts range from a low of $46.46 to a high of $64.05. The average price target represents an increase of 35.14% from its latest reported closing price of $40.38.
The projected annual revenue for Argan is $463MM, an increase of 0.32%. The projected annual EPS is $2.08, an increase of 39.76%.
Fund Sentiment
There are 381 funds or institutions reporting positions in Argan. This is a decrease of 8 owner(s) or 2.06%.
Average portfolio weight of all funds dedicated to US:AGX is 0.1739%, a decrease of 3.8182%. Total shares owned by institutions increased in the last three months by 3.98% to 34,757K shares.
What are large shareholders doing?
AVALX - Aegis Value Fund Class I holds 18,172,738 shares representing 133.86% ownership of the company. In it's prior filing, the firm reported owning 17,032,738 shares, representing an increase of 6.27%. The firm decreased its portfolio allocation in AGX by 16.58% over the last quarter.
YASLX - AMG Yacktman Special Opportunities Fund Class Z holds 1,475,000 shares representing 10.86% ownership of the company. In it's prior filing, the firm reported owning 956,900 shares, representing an increase of 35.13%. The firm increased its portfolio allocation in AGX by 47.21% over the last quarter.
GRHIX - Goehring & Rozencwajg Resources Fund Institutional Class Shares holds 978,818 shares representing 7.21% ownership of the company. In it's prior filing, the firm reported owning 902,418 shares, representing an increase of 7.81%. The firm increased its portfolio allocation in AGX by 16.51% over the last quarter.
Jpmorgan Chase & holds 598,353 shares representing 4.41% ownership of the company. In it's prior filing, the firm reported owning 607,947 shares, representing a decrease of 1.60%. The firm decreased its portfolio allocation in AGX by 12.54% over the last quarter.
Renaissance Technologies holds 477,099 shares representing 3.51% ownership of the company. In it's prior filing, the firm reported owning 531,999 shares, representing a decrease of 11.51%. The firm decreased its portfolio allocation in AGX by 7.62% over the last quarter.
Argan Declares $0.25 Dividend
Argan said on December 14, 2022 that its board of directors declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of January 19, 2023 received the payment on January 31, 2023. Previously, the company paid $0.25 per share.
At the current share price of $40.38 / share, the stock's dividend yield is 2.48%. Looking back five years and taking a sample every week, the average dividend yield has been 2.43%, the lowest has been 1.83%, and the highest has been 3.14%. The standard deviation of yields is 0.27 (n=236).
The current dividend yield is 0.17 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.63. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
Argan Background Information
(This description is provided by the company.)
Argan's primary business is providing a full range of services to the power industry, including the renewable energy sector. Argan's service offerings focus on the engineering, procurement and construction of natural gas-fired power plants, along with related commissioning, operations management, maintenance, project development and consulting services, through its Gemma Power Systems and Atlantic Projects Company operations. Argan also owns The Roberts Company, which is a fully integrated fabrication, construction and industrial plant services company, and SMC Infrastructure Solutions, which provides telecommunications infrastructure services.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
