Advanced Drainage Systems, Inc. to Issue Quarterly Dividend of $0.18 (NYSE:WMS)

Key Points

• Advanced Drainage Systems, Inc. announced a quarterly dividend of $0.18 per share, with record date set for August 29th and payment on September 15th, representing a 0.5% dividend yield.
• The company reported earnings per share of $1.95 for the recent quarter, exceeding analysts' expectations of $1.77, with a net margin of 15.50% and a return on equity of 32.33%.
• Research analysts have set a consensus target price of $139.88 for the stock, with several rating the company as a "Moderate Buy".

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) announced a quarterly dividend on Thursday, August 7th, RTT News reports. Stockholders of record on Friday, August 29th will be paid a dividend of 0.18 per share by the construction company on Monday, September 15th. This represents a c) dividend on an annualized basis and a dividend yield of 0.5%.

Advanced Drainage Systems has a dividend payout ratio of 10.2% meaning its dividend is sufficiently covered by earnings. Research analysts expect Advanced Drainage Systems to earn $6.68 per share next year, which means the company should continue to be able to cover its $0.64 annual dividend with an expected future payout ratio of 9.6%.

Advanced Drainage Systems Price Performance

Shares of NYSE WMS opened at $131.01 on Thursday. The company has a debt-to-equity ratio of 0.90, a current ratio of 3.33 and a quick ratio of 2.10. Advanced Drainage Systems has a fifty-two week low of $93.92 and a fifty-two week high of $166.03. The stock has a market capitalization of $10.17 billion, a PE ratio of 22.98, a P/E/G ratio of 1.70 and a beta of 1.27. The business has a fifty day moving average price of $115.51 and a two-hundred day moving average price of $114.35.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last posted its earnings results on Thursday, August 7th. The construction company reported $1.95 earnings per share for the quarter, topping analysts' consensus estimates of $1.77 by $0.18. Advanced Drainage Systems had a net margin of 15.50% and a return on equity of 32.33%. The firm's revenue for the quarter was up 1.8% on a year-over-year basis. During the same period last year, the firm posted $2.06 EPS. As a group, equities analysts predict that Advanced Drainage Systems will post 6.1 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts have issued reports on WMS shares. 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 report on Friday, May 16th. UBS Group reduced their target price on shares of Advanced Drainage Systems from $155.00 to $146.00 and set a "buy" rating for the company in a report on Friday, May 16th. Robert W. Baird lowered their price objective on Advanced Drainage Systems from $146.00 to $141.00 and set an "outperform" rating for the company in a research report on Friday, May 16th. Oppenheimer dropped their price objective on Advanced Drainage Systems from $165.00 to $160.00 and set an "outperform" rating on the stock in a report on Friday, May 16th. Finally, Barclays lifted their target price on shares of Advanced Drainage Systems from $130.00 to $135.00 and gave the stock an "overweight" rating in a research report on Friday, May 16th. One research analyst has rated the stock with a sell rating, one has given a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $139.88.

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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