Insider Activity Report: Argan (AGX)

Cynthia Flanders, a director at Argan (AGX), recently bought 8,500 shares. The buy increased her position by 106 percent, and came to a total cost just under $258,000.

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  • This follows up on two buys from another director in April and May, for 2,000 shares. Those mark the only insider moves since late 2021, when the company chairman sold off 10,000 shares at far higher prices than where the stock trades today.

    Overall, company insiders own 5.8 percent of shares.

    The engineering and construction firm is up over 40 percent in the past year, doubling the return of the overall market. Earnings have doubled, and revenues are up nearly 20 percent amid a big construction boom.

    Even with the big move higher, shares trade at a discount to the overall market at less than 18 times earnings. Plus, the company has a balance sheet with over $340 million in cash, and almost no debt.

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  • Action to take: Investors may like shares here, as many construction projects take years to play out and get paid in installments. That should help keep shares trending higher.

    Argan also yields about 2.6 percent at today’s prices, and the company has recently raised its dividend.

    For traders, options are thinly traded. The January $50 calls, last going for about $1.50, could see mid-to-high double-digit returns on a continued rally in shares into the start of next year.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.


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