Insider Decision: Charles E. Collins Offloads $305K Worth Of Argan Stock

A substantial insider sell was reported on June 11, by Charles E. Collins, Chief Executive Officer at Argan AGX, based on the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Collins executed a sale of 1,265 shares of Argan with a total value of $305,231.

Argan shares are trading down 1.5% at $220.94 at the time of this writing on Thursday morning.

Unveiling the Story Behind 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 revenue growth over a period of 3 months has been noteworthy. As of 30 April, 2025, the company achieved a revenue growth rate of approximately 22.82%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 19.03%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Argan's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.65.

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.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 31.28 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.46, Argan's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 22.44 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Unmasking the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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.

Unlocking the Meaning of Transaction Codes

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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga's automated content engine and reviewed by an editor.