Should You Buy Argan, Inc. (AGX)?

Now, key money managers were leading the bulls’ herd. Driehaus Capital, managed by Richard Driehaus, established the most outsized position in Argan, Inc. (NYSE:AGX). According to its latest 13F filing, the fund had $3.6 million invested in the company at the end of the quarter. Ken Grossman and Glen Schneider’s SG Capital Management also initiated a $0.9 million position during the quarter. The following funds were also among the new AGX investors: Joel Greenblatt’s Gotham Asset Management and Matthew Tewksbury’s Stevens Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Argan, Inc. (NYSE:AGX) but similarly valued. These stocks are Harmonic Inc (NASDAQ:HLIT), GasLog Partners LP (NYSE:GLOP), Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC), and Tronox Ltd (NYSE:TROX). This group of stocks’ market values are closest to AGX’s market value.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $66 million in AGX’s case. Tronox Ltd (NYSE:TROX) is the most popular stock in this table. On the other hand GasLog Partners LP (NYSE:GLOP) is the least popular one with only 4 bullish hedge fund positions. Argan, Inc. (NYSE:AGX) is clearly the star of this group, having also attracted a large amount of hedgies’ funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.