Disclosed on May 1, Richard H Deily, Compliance Officer at Argan AGX, executed a substantial insider sell as per the latest SEC filing.
What Happened: Deily’s decision to sell 1,565 shares of Argan was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $238,380.
The latest market snapshot at Friday morning reveals Argan shares up by 1.39%, trading at $161.0.
About Argan
Argan Inc is a United States-based construction firm that conducts operations through its wholly-owned subsidiaries, GPS, APC, TRC, and SMC. Through GPS and APC it provides a full range of engineering, procurement, construction, commissioning, maintenance, project development and technical consulting services to the power generation market, including the renewable energy sector, for a wide range of customers, including independent power project owners, public utilities, power plant heavy equipment suppliers and other commercial firms with power requirements in the U.S., Ireland and the U.K. It operates in three segments: Power Services, Industrial Services, and Telecom Services, out of which Power Services derives the majority of revenue.
Argan: Delving into Financials
Revenue Growth: Argan’s remarkable performance in 3 months is evident. As of 31 January, 2025, the company achieved an impressive revenue growth rate of 41.28%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Holistic Profitability Examination:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 20.48%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): Argan’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.31.
Debt Management: With a below-average debt-to-equity ratio of 0.01, Argan adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Metrics: A Closer Look
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 25.82 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 2.53 is above industry norms, reflecting an elevated valuation for Argan’s stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 17.51 positions the company as being more valued compared to industry benchmarks.
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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Illuminating the Importance of Insider Transactions
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Transaction Codes Worth Your Attention
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Argan’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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