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

Key Points

• Analyst sentiment is moderately bullish: Seven of nine brokerages rate Advanced Drainage Systems a “buy,” while two recommend holding the stock. The average 12-month price target is $188.38 versus a recent price of $150.82.
• Quarterly results exceeded expectations: The company reported $2.49 in EPS versus the $2.10 consensus estimate, with approximately $1 billion in revenue, up 20.6% year over year.
• Shareholders will receive a quarterly dividend: Advanced Drainage Systems declared a $0.20-per-share dividend, or $0.80 annualized, representing a 0.5% yield. Institutional investors own approximately 89.83% of the stock.

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) have earned a consensus rating of "Moderate Buy" from the nine ratings firms that are currently covering the firm, Marketbeat.com reports. Two investment analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $188.3750.

WMS has been the subject of several research reports. Zacks Research upgraded Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a research note on Monday, July 27th. UBS Group lifted their price target on Advanced Drainage Systems from $205.00 to $207.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Oppenheimer lowered their price target on Advanced Drainage Systems from $195.00 to $190.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 26th. Weiss Ratings reiterated a "hold (c)" rating on shares of Advanced Drainage Systems in a research report on Friday, July 17th. Finally, Jefferies Financial Group started coverage on Advanced Drainage Systems in a research note on Thursday, June 11th. They issued a "buy" rating and a $175.00 price objective for the company.

Advanced Drainage Systems Stock Performance

WMS opened at $150.82 on Monday. The firm's fifty day simple moving average is $145.07 and its two-hundred day simple moving average is $147.54. Advanced Drainage Systems has a 52-week low of $128.03 and a 52-week high of $179.32. The company has a market cap of $11.37 billion, a price-to-earnings ratio of 26.05, a PEG ratio of 1.65 and a beta of 1.27. The company has a quick ratio of 1.18, a current ratio of 2.12 and a debt-to-equity ratio of 0.95.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last released its earnings results on Thursday, August 6th. The construction company reported $2.49 EPS for the quarter, topping analysts' consensus estimates of $2.10 by $0.39. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The business had revenue of $1 billion during the quarter, compared to analysts' expectations of $991.39 million. During the same quarter in the previous year, the company earned $1.95 earnings per share. The company's quarterly revenue was up 20.6% on a year-over-year basis. Equities analysts anticipate that Advanced Drainage Systems will post 6.62 earnings per share for the current fiscal year.

Advanced Drainage Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.5%. Advanced Drainage Systems's dividend payout ratio is presently 13.82%.

Institutional Investors Weigh In On Advanced Drainage Systems

A number of hedge funds have recently modified their holdings of WMS. BlackRock Inc. purchased a new stake in Advanced Drainage Systems during the 2nd quarter valued at about $1,172,482,000. Norges Bank acquired a new stake in Advanced Drainage Systems in the 4th quarter valued at about $156,587,000. Wellington Management Group LLP lifted its stake in Advanced Drainage Systems by 234.0% in the 3rd quarter. Wellington Management Group LLP now owns 1,188,906 shares of the construction company's stock worth $164,901,000 after purchasing an additional 832,929 shares in the last quarter. Amundi lifted its stake in Advanced Drainage Systems by 80.9% in the 4th quarter. Amundi now owns 1,279,576 shares of the construction company's stock worth $185,324,000 after purchasing an additional 572,193 shares in the last quarter. Finally, Pictet Asset Management Holding SA boosted its holdings in shares of Advanced Drainage Systems by 32.9% during the 1st quarter. Pictet Asset Management Holding SA now owns 2,204,801 shares of the construction company's stock worth $302,290,000 after purchasing an additional 546,298 shares during the last quarter. 89.83% of the stock is currently owned by institutional investors and hedge funds.

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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