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

Key Points

• Advanced Drainage Systems, Inc. has received an average recommendation of "Moderate Buy" from analysts, with seven out of nine rating it as a buy.
• The company's stock is currently priced at $142.71, with a projected average price target among brokerages of approximately $152.56.
• Advanced Drainage Systems announced a quarterly dividend of $0.18 per share, reflecting a 0.5% dividend yield and a payout ratio of 13.00%.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) has been given an average rating of "Moderate Buy" by the nine analysts that are covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $152.5556.

WMS has been the subject of several recent research reports. KeyCorp raised their price objective on Advanced Drainage Systems from $140.00 to $159.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. Barclays lifted their price target on shares of Advanced Drainage Systems from $135.00 to $160.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. Wall Street Zen upgraded shares of Advanced Drainage Systems from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Oppenheimer reaffirmed an "outperform" rating on shares of Advanced Drainage Systems in a research note on Friday, August 8th. Finally, UBS Group reissued a "buy" rating and issued a $167.00 price target (up from $146.00) on shares of Advanced Drainage Systems in a research report on Friday, August 8th.

Hedge Funds Weigh In On Advanced Drainage Systems

A number of hedge funds have recently bought and sold shares of WMS. CWM LLC grew its position in Advanced Drainage Systems by 16.2% during the 3rd quarter. CWM LLC now owns 702 shares of the construction company's stock valued at $97,000 after purchasing an additional 98 shares during the last quarter. Pacer Advisors Inc. bought a new stake in shares of Advanced Drainage Systems during the third quarter valued at approximately $1,321,000. Norden Group LLC bought a new stake in shares of Advanced Drainage Systems during the third quarter valued at approximately $395,000. Vontobel Holding Ltd. raised its holdings in Advanced Drainage Systems by 0.9% in the 3rd quarter. Vontobel Holding Ltd. now owns 21,882 shares of the construction company's stock worth $3,035,000 after acquiring an additional 186 shares during the last quarter. Finally, Marshall Financial Group LLC lifted its position in Advanced Drainage Systems by 2.9% in the 3rd quarter. Marshall Financial Group LLC now owns 9,529 shares of the construction company's stock valued at $1,322,000 after acquiring an additional 268 shares in the last quarter. Institutional investors own 89.83% of the company's stock.

Advanced Drainage Systems Stock Up 1.3%

WMS stock opened at $142.71 on Tuesday. Advanced Drainage Systems has a fifty-two week low of $93.92 and a fifty-two week high of $166.03. The company has a market capitalization of $11.10 billion, a price-to-earnings ratio of 25.76, a price-to-earnings-growth ratio of 1.89 and a beta of 1.32. The business's 50 day moving average price is $141.80 and its two-hundred day moving average price is $123.69. The company has a debt-to-equity ratio of 0.82, a quick ratio of 2.25 and a current ratio of 3.22.

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

Advanced Drainage Systems Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Friday, August 29th were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend 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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