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

Key Points

• Advanced Drainage Systems, Inc. has received a consensus rating of "Moderate Buy" from analysts, with an average target price of $139.88.
• The company recently reported a decrease in quarterly revenue, posting $615.76 million, which was below analysts' expectations of $653.22 million.
• Advanced Drainage Systems also announced an increase in its quarterly dividend from $0.16 to $0.18 per share, reflecting a positive outlook for its investors.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eight brokerages that are presently covering the stock, MarketBeat reports. One analyst has rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $139.8750.

WMS has been the topic of a number of research reports. Barclays boosted their price objective on Advanced Drainage Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a research note on Friday, May 16th. UBS Group lowered their price target on shares of Advanced Drainage Systems from $155.00 to $146.00 and set a "buy" rating on the stock in a research report on Friday, May 16th. Robert W. Baird dropped their price target on shares of Advanced Drainage Systems from $146.00 to $141.00 and set an "outperform" rating on the stock in a research note on Friday, May 16th. Oppenheimer reduced their price objective on shares of Advanced Drainage Systems from $165.00 to $160.00 and set an "outperform" rating for the company in a research note on Friday, May 16th. Finally, Loop Capital dropped their target price on Advanced Drainage Systems from $143.00 to $133.00 and set a "buy" rating on the stock in a research report on Friday, May 16th.

Hedge Funds Weigh In On Advanced Drainage Systems

A number of institutional investors have recently added to or reduced their stakes in the business. NBC Securities Inc. purchased a new position in shares of Advanced Drainage Systems during the first quarter worth about $26,000. Bessemer Group Inc. lifted its stake in Advanced Drainage Systems by 76.2% during the first quarter. Bessemer Group Inc. now owns 266 shares of the construction company's stock worth $29,000 after purchasing an additional 115 shares during the last quarter. Parallel Advisors LLC raised its holdings in shares of Advanced Drainage Systems by 177.4% during the 2nd quarter. Parallel Advisors LLC now owns 430 shares of the construction company's stock valued at $49,000 after buying an additional 275 shares in the last quarter. Banque Cantonale Vaudoise bought a new stake in Advanced Drainage Systems in the 1st quarter worth approximately $66,000. Finally, Signaturefd LLC boosted its stake in Advanced Drainage Systems by 110.7% in the first quarter. Signaturefd LLC now owns 670 shares of the construction company's stock worth $73,000 after buying an additional 352 shares in the last quarter. 89.83% of the stock is currently owned by institutional investors.

Advanced Drainage Systems Stock Performance

NYSE WMS opened at $113.74 on Thursday. The company has a market capitalization of $8.83 billion, a PE ratio of 19.75, a price-to-earnings-growth ratio of 1.70 and a beta of 1.27. The company has a debt-to-equity ratio of 0.90, a quick ratio of 2.10 and a current ratio of 3.33. Advanced Drainage Systems has a 52-week low of $93.92 and a 52-week high of $166.03. The company has a 50-day simple moving average of $115.51 and a 200 day simple moving average of $114.35.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last posted its quarterly earnings results on Thursday, May 15th. The construction company reported $1.03 EPS for the quarter, missing analysts' consensus estimates of $1.09 by ($0.06). The company had revenue of $615.76 million during the quarter, compared to the consensus estimate of $653.22 million. Advanced Drainage Systems had a return on equity of 32.33% and a net margin of 15.50%. The company's revenue for the quarter was down 5.8% compared to the same quarter last year. During the same period last year, the firm posted $1.23 EPS. On average, research analysts predict that Advanced Drainage Systems will post 6.1 EPS for the current year.

Advanced Drainage Systems Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 16th. Investors of record on Friday, May 30th were given a dividend of $0.18 per share. The ex-dividend date was Friday, May 30th. This is a positive change from Advanced Drainage Systems's previous quarterly dividend of $0.16. This represents a $0.72 annualized dividend and a yield of 0.6%. Advanced Drainage Systems's dividend payout ratio (DPR) is presently 12.50%.

Advanced Drainage Systems Company Profile

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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