Advanced Drainage Systems, Inc. (NYSE:WMS) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analyst consensus: Eight firms rate Advanced Drainage Systems an average of "Moderate Buy" (seven buys, one hold) with a 12‑month average price target of $191, while recent broker targets range from $181 to $215.
• Recent results: ADI beat estimates with $1.27 EPS vs. $1.11 expected and $693.4M revenue vs. $686.4M, reporting a 15.75% net margin, 27.72% ROE and only 0.4% YoY revenue growth; analysts project ~6.1 EPS for the fiscal year.
• Market snapshot: shares opened at $152.21 (market cap ~$11.9B, P/E 25.33, 52‑week range $100.60–$179.32), the company pays a $0.18 quarterly dividend ($0.72 annual, ~0.5% yield) and institutional investors own ~89.8% of the stock.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) has been assigned an average rating of "Moderate Buy" from the eight ratings firms that are currently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company. The average twelve-month price target among brokerages that have covered the stock in the last year is $191.00.

WMS has been the subject of a number of research reports. KeyCorp raised their target price on shares of Advanced Drainage Systems from $180.00 to $198.00 and gave the stock an "overweight" rating in a report on Friday, February 6th. Oppenheimer raised their price objective on shares of Advanced Drainage Systems from $180.00 to $200.00 and gave the stock an "outperform" rating in a research note on Monday, February 9th. Barclays decreased their price objective on shares of Advanced Drainage Systems from $198.00 to $181.00 and set an "overweight" rating for the company in a research note on Wednesday, April 8th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Advanced Drainage Systems in a research note on Wednesday, January 21st. Finally, UBS Group set a $215.00 price objective on shares of Advanced Drainage Systems and gave the stock a "buy" rating in a research note on Friday, February 6th.

Advanced Drainage Systems Trading Up 3.4%

Shares of NYSE:WMS opened at $152.21 on Tuesday. The stock has a market capitalization of $11.86 billion, a price-to-earnings ratio of 25.33, a PEG ratio of 1.57 and a beta of 1.37. Advanced Drainage Systems has a 1-year low of $100.60 and a 1-year high of $179.32. The company has a debt-to-equity ratio of 0.72, a quick ratio of 3.08 and a current ratio of 4.12. The company has a 50 day moving average price of $153.21 and a 200 day moving average price of $149.24.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last issued its earnings results on Thursday, February 5th. The construction company reported $1.27 earnings per share for the quarter, topping analysts' consensus estimates of $1.11 by $0.16. The firm had revenue of $693.35 million during the quarter, compared to analysts' expectations of $686.37 million. Advanced Drainage Systems had a net margin of 15.75% and a return on equity of 27.72%. The firm's revenue for the quarter was up .4% compared to the same quarter last year. During the same period last year, the firm posted $1.09 earnings per share. On average, research analysts anticipate that Advanced Drainage Systems will post 6.1 EPS for the current fiscal year.

Advanced Drainage Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Monday, March 2nd were paid a $0.18 dividend. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $0.72 dividend on an annualized basis and a yield of 0.5%. Advanced Drainage Systems's dividend payout ratio (DPR) is currently 11.98%.

Hedge Funds Weigh In On Advanced Drainage Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mather Group LLC. acquired a new position in Advanced Drainage Systems in the 3rd quarter worth approximately $28,000. Northwestern Mutual Wealth Management Co. boosted its stake in Advanced Drainage Systems by 352.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 226 shares of the construction company's stock worth $26,000 after purchasing an additional 176 shares during the period. Annis Gardner Whiting Capital Advisors LLC acquired a new position in Advanced Drainage Systems in the 3rd quarter worth approximately $33,000. Cullen Frost Bankers Inc. boosted its stake in Advanced Drainage Systems by 1,242.1% in the 3rd quarter. Cullen Frost Bankers Inc. now owns 255 shares of the construction company's stock worth $35,000 after purchasing an additional 236 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in shares of Advanced Drainage Systems during the 3rd quarter valued at $36,000. Institutional investors and hedge funds own 89.83% of the company's stock.

Advanced Drainage Systems Company Profile

Advanced Drainage Systems, Inc NYSE: WMS is a leading manufacturer and supplier of water management solutions in North America. Headquartered in Hilliard, Ohio, the company specializes in the design, production and distribution of high-density polyethylene (HDPE) drainage pipe and related products. Its core business addresses stormwater management, on-site septic systems and erosion control for residential, commercial and infrastructure projects.

The company's product portfolio includes corrugated plastic pipe, tubing, fittings, geocells, geogrids and stormwater structures such as inlets, manholes and detention/retention systems.

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