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

Key Points

• Advanced Drainage Systems (NYSE:WMS) carries a consensus analyst rating of "Moderate Buy", with seven buy ratings and one hold. The average 12-month price target from covering analysts is about $190.29.
• The company recently reported better-than-expected quarterly earnings, posting EPS of $1.27 versus the $1.11 estimate and revenue of $693.35 million, slightly above forecasts. Revenue was up modestly year over year, and the firm remains profitable with a net margin of 15.75%.
• Institutional interest remains high, with 89.83% of shares owned by institutional investors, and several hedge funds recently increased their stakes. The stock was trading at $143.26, below its 52-week high of $179.32.

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) have received a consensus rating of "Moderate Buy" from the eight ratings firms that are presently covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a hold rating and seven have assigned a buy rating to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $190.2857.

Several equities analysts have recently issued reports on WMS shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Advanced Drainage Systems in a research report on Monday, April 20th. KeyCorp raised their price objective on shares of Advanced Drainage Systems from $180.00 to $198.00 and gave the company an "overweight" rating in a research note on Friday, February 6th. UBS Group set a $215.00 target price on shares of Advanced Drainage Systems and gave the stock a "buy" rating in a report on Friday, February 6th. Oppenheimer reiterated an "outperform" rating and issued a $195.00 target price (down from $200.00) on shares of Advanced Drainage Systems in a research note on Friday, April 17th. Finally, Robert W. Baird set a $205.00 price target on shares of Advanced Drainage Systems in a research report on Friday, February 6th.

Hedge Funds Weigh In On Advanced Drainage Systems

Hedge funds and other institutional investors have recently modified their holdings of the company. Bridges Investment Management Inc. raised its stake in shares of Advanced Drainage Systems by 32.9% in the 3rd quarter. Bridges Investment Management Inc. now owns 28,122 shares of the construction company's stock valued at $3,901,000 after acquiring an additional 6,960 shares during the period. Mediolanum International Funds Ltd acquired a new position in shares of Advanced Drainage Systems in the 3rd quarter worth approximately $24,314,000. Essex Investment Management Co. LLC boosted its position in shares of Advanced Drainage Systems by 345.7% during the 3rd quarter. Essex Investment Management Co. LLC now owns 42,898 shares of the construction company's stock worth $5,950,000 after purchasing an additional 33,274 shares during the period. Asset Management One Co. Ltd. increased its holdings in Advanced Drainage Systems by 29.7% in the 3rd quarter. Asset Management One Co. Ltd. now owns 19,982 shares of the construction company's stock valued at $2,772,000 after purchasing an additional 4,574 shares during the last quarter. Finally, J. Safra Sarasin Holding AG increased its holdings in Advanced Drainage Systems by 85.9% in the 3rd quarter. J. Safra Sarasin Holding AG now owns 135,912 shares of the construction company's stock valued at $18,851,000 after purchasing an additional 62,809 shares during the last quarter. 89.83% of the stock is owned by institutional investors.

Advanced Drainage Systems Stock Performance

Advanced Drainage Systems stock opened at $143.26 on Friday. Advanced Drainage Systems has a fifty-two week low of $104.69 and a fifty-two week high of $179.32. The stock's 50 day simple moving average is $146.94 and its two-hundred day simple moving average is $150.44. 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 stock has a market cap of $11.16 billion, a price-to-earnings ratio of 23.84, a PEG ratio of 1.51 and a beta of 1.33.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last announced its earnings results on Thursday, February 5th. The construction company reported $1.27 EPS for the quarter, beating analysts' consensus estimates of $1.11 by $0.16. Advanced Drainage Systems had a net margin of 15.75% and a return on equity of 27.72%. The firm had revenue of $693.35 million for the quarter, compared to analysts' expectations of $686.37 million. During the same quarter in the previous year, the business posted $1.09 EPS. The company's quarterly revenue was up .4% on a year-over-year basis. As a group, analysts expect that Advanced Drainage Systems will post 6.19 earnings per share for the current fiscal year.

About Advanced Drainage Systems

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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