Argan Story

<div class='circular--portrait' style='background:#800000;color: #F8F8FF;font-size:3em;'>AGX</div>
AGX -- USA Stock  

USD 45.90  1.13  2.40%

With so much uncertainty about the industrials space, it is fair to break down Argan Inc against current market trends. As we have suggested previously, Argan is beginning its slide as investors shift to be more bearish due to the increased sector volatility. Argan Inc slowly supersedes the market. The returns on the market and returns on Argan appear slightly correlated for the last few months. Strong basic indicators of the company may suggest signs of short-term price drift for investors. Argan Inc is scheduled to announce its earnings tomorrow.
Published over three months ago
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Will Argan (NYSE:AGX) continue to slide in October?
The entity's average rating is Strong Buy from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Argan market sentiment investors' perception of the future value of Argan. Let us look at a few aspects of Argan technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Argan Inc. In general, we focus on analyzing Argan stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Argan's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Argan's intrinsic value. In addition to deriving basic predictive indicators for Argan, we also check how macroeconomic factors affect Argan price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Argan's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Argan in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Argan. Your research has to be compared to or analyzed against Argan's peers to derive any actionable benefits. When done correctly, Argan's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Argan Inc.

How does Argan Stands against Peers?

Analyzing Argan competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Argan across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Argan Competition Details

How Argan utilizes its cash?

To perform a cash flow analysis of Argan, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Argan is receiving and how much cash it distributes out in a given period. The Argan cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Argan Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Argan reported Net Cash Flow from Operations of 48.21 Million in 2020

Acquisition by Mano Koilpillai of 10000 shares of Argan subject to Rule 16b-3

Legal trades by Argan insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Argan insider trading alert for grant of stock option to purchase common stock by Mano Koilpillai, the corporate stakeholder, on 16th of December 2020. This event was filed by Argan Inc with SEC on 2020-12-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

The firm has a beta of 0.4886. Let's try to break down what Argan's beta means in this case. As returns on the market increase, Argan returns are expected to increase less than the market. However, during the bear market, the loss on holding Argan will be expected to be smaller as well. The beta indicator helps investors understand whether Argan moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Argan deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Argan reported the last year's revenue of 249.6 M. Reported Net Loss for the year was (13.65 M) with loss before taxes, overhead, and interest of (10.22 M).

Our take on Argan small slide

The variance is down to 6.45 as of today. Argan Inc exhibits very low volatility with skewness of 1.38 and kurtosis of 6.6. However, we advise investors to further study Argan Inc technical indicators to make sure all market info is available and is reliable.

Our Final Take On Argan

While some firms in the engineering & construction industry are either recovering or due for a correction, Argan may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Argan at this time. The Argan Inc risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Argan.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Argan Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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