SurgoCap builds $119.8M Argan stake as insiders cash out
What's the deal? SurgoCap Partners LPDealroom has a profile for this one. Try Dealroom → acquired a new position in Argan, Inc.Dealroom has a profile for this one. Try Dealroom → (NYSE:AGX) during the second quarter, buying 149,983 shares valued at about $119.77 million, according to its latest 13F filing with the Securities and Exchange Commission. Argan now makes up roughly 3.9% of SurgoCap's portfolio, its 10th-biggest position.
What does Argan do? The construction company builds power plants and infrastructure. It reported $290.95 million in second-quarter revenue, up 50.2% year-over-year, and $3.24 in earnings per share — beating the $2.31 consensus.
Why it matters: SurgoCap's bet lands as Argan posts strong fundamentals: a 36.89% return on equity, a 15.48% net margin, and a $6.58 billion market cap. The stock has swung between a 12-month low of $197 and a high of $805.75.
The other side: Insiders have been selling. In the last 90 days, they offloaded 127,973 shares worth $87.55 million. Chairman William F. Griffin Jr. sold 20,000 shares at an average $760.43 in June, cutting his stake 32.8%, while Director Peter W. Getsinger sold 2,000 shares at $699.
The signal: Institutions still hold 79.43% of Argan, and several — including Millennium ManagementDealroom has a profile for this one. Try Dealroom → and UBS Asset ManagementDealroom has a profile for this one. Try Dealroom → — added to their positions this year. But with shares opening at $469.15 on Tuesday, down 6.5%, and heavy insider selling, opinion on Argan's runway is split.
Read more: tickerreport.com
Image credit: Alan R. Light
