William F. Griffin Jr., the non-executive chairman of Argan Inc. (NYSE:AGX), has sold 7,500 shares of the company's common stock. The transaction, which took place on October 30, 2024, was conducted through the Peach Pit Foundation, where Sharon K. Griffin, his wife, serves as trustee. The shares were sold in the open market at a price of $136.09 each, amounting to a total value of approximately $1.02 million.
Following this transaction, Griffin retains indirect ownership of 11,650 shares. This sale is part of his ongoing management of stock holdings in the company, where he continues to play a significant role as a director and non-executive chairman.
In other recent news, Argan, Inc. reported substantial financial growth, reflected in a 25% increase in its quarterly cash dividend. This decision follows the company's robust Q2 results, with a consolidated revenue increase of 61% to $227 million. Argan's net income rose to $18 million, with EBITDA standing at $25 million. The company's project backlog exceeds $1 billion, with a strong focus on renewable energy projects valued at approximately $570 million. Argan's balance sheet remains solid, with $485 million in cash and investments, net liquidity of $260 million, and no debt. In the coming 5 to 10 months, Argan anticipates having multiple gas power plants under contract and expects completion of some solar battery projects by the end of the fiscal year. Despite a decline in gross profit due to changes in project mix, the company maintains an optimistic outlook, particularly for growth in the gas sector, supported by a record quarter for its TRC business, which generated over $170 million in revenue over the last 12 months. In other developments, Argan recently mourned the loss of long-time board member W.G. Champion Mitchell, acknowledging his significant contributions to the company's growth.
InvestingPro Insights
As William F. Griffin Jr. reduces his stake in Argan Inc. (NYSE:AGX), investors might be curious about the company's current financial standing and market performance. According to InvestingPro data, Argan's market capitalization stands at $1.85 billion, reflecting its position as a mid-cap company in the construction and engineering sector.
The company's stock has shown remarkable performance, with a one-year price total return of 190.03% as of the latest data. This impressive gain aligns with one of the InvestingPro Tips, which highlights Argan's high return over the last year. Additionally, the stock is trading near its 52-week high, with the current price at 99.19% of that peak.
Argan's financial health appears robust, with InvestingPro Tips indicating that the company holds more cash than debt on its balance sheet and that its liquid assets exceed short-term obligations. This strong financial position may provide reassurance to investors in light of the insider sale.
From a valuation perspective, Argan's P/E ratio stands at 41.51, which InvestingPro Tips suggest is a high earnings multiple. This could indicate that the market has high growth expectations for the company, supported by the fact that analysts anticipate sales growth in the current year.
For investors seeking more comprehensive analysis, InvestingPro offers 21 additional tips for Argan Inc., providing a deeper understanding of the company's financial health and market position.
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