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

Key Points

• Advanced Drainage Systems, Inc. has received a consensus rating of "Moderate Buy" from eight brokerages, with seven recommendations to buy and one to hold, indicating a positive outlook for the company.
• In its latest earnings report, Advanced Drainage Systems beat consensus estimates with an EPS of $1.95 and reported a revenue of $829.88 million, reflecting a 1.8% year-over-year increase.
• The company recently declared a quarterly dividend of $0.18 per share, providing a yield of 0.5%, with a payout ratio currently at 13.00%.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) has received a consensus rating of "Moderate Buy" from the eight brokerages that are covering the company, Marketbeat reports. One equities research analyst has rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $152.5556.

WMS has been the subject of several analyst reports. Royal Bank Of Canada started coverage on shares of Advanced Drainage Systems in a research note on Monday, August 11th. They issued an "outperform" rating and a $159.00 price objective for the company. Wall Street Zen upgraded shares of Advanced Drainage Systems from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Barclays lifted their target price on shares of Advanced Drainage Systems from $135.00 to $160.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. Oppenheimer restated an "outperform" rating on shares of Advanced Drainage Systems in a report on Friday, August 8th. Finally, UBS Group restated a "buy" rating and set a $167.00 price objective (up previously from $146.00) on shares of Advanced Drainage Systems in a report on Friday, August 8th.

Hedge Funds Weigh In On Advanced Drainage Systems

A number of large investors have recently modified their holdings of WMS. ProShare Advisors LLC lifted its position in shares of Advanced Drainage Systems by 7.3% during the fourth quarter. ProShare Advisors LLC now owns 3,300 shares of the construction company's stock worth $381,000 after purchasing an additional 224 shares in the last quarter. Two Sigma Investments LP bought a new stake in Advanced Drainage Systems in the fourth quarter valued at approximately $535,000. Vident Advisory LLC increased its stake in Advanced Drainage Systems by 23.0% in the fourth quarter. Vident Advisory LLC now owns 1,907 shares of the construction company's stock valued at $220,000 after purchasing an additional 356 shares in the last quarter. Lansforsakringar Fondforvaltning AB publ bought a new stake in Advanced Drainage Systems in the fourth quarter valued at approximately $3,641,000. Finally, California State Teachers Retirement System increased its position in shares of Advanced Drainage Systems by 3.9% during the fourth quarter. California State Teachers Retirement System now owns 68,651 shares of the construction company's stock worth $7,936,000 after acquiring an additional 2,601 shares in the last quarter. 89.83% of the stock is currently owned by institutional investors and hedge funds.

Advanced Drainage Systems Trading Down 1.7%

Shares of NYSE:WMS opened at $135.86 on Friday. The company has a quick ratio of 2.25, a current ratio of 3.22 and a debt-to-equity ratio of 0.82. Advanced Drainage Systems has a 12-month low of $93.92 and a 12-month high of $166.03. The firm has a fifty day moving average of $134.59 and a two-hundred day moving average of $119.88. The firm has a market capitalization of $10.56 billion, a P/E ratio of 24.52, a price-to-earnings-growth ratio of 1.84 and a beta of 1.26.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The construction company reported $1.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.78 by $0.17. Advanced Drainage Systems had a net margin of 14.82% and a return on equity of 29.57%. The business had revenue of $829.88 million during the quarter, compared to analyst estimates of $800.54 million. During the same quarter in the previous year, the business earned $2.06 EPS. Advanced Drainage Systems's quarterly revenue was up 1.8% compared to the same quarter last year. Advanced Drainage Systems has set its FY 2026 guidance at EPS. On average, equities analysts expect that Advanced Drainage Systems will post 6.1 EPS for the current fiscal year.

Advanced Drainage Systems Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Friday, August 29th were paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Friday, August 29th. Advanced Drainage Systems's dividend payout ratio is currently 13.00%.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators.

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