Advanced Drainage Systems (NYSE:WMS) Stock Price Down 9.8% - Should You Sell?

Key Points

• Advanced Drainage Systems stock fell sharply by 9.8%, closing at $133.91, with trading volume down 33% from its average.
• Analysts have a mixed outlook, with price targets ranging from $133.00 to $167.00, and an average consensus rating of "Moderate Buy".
• The company recently declared a quarterly dividend of $0.18 per share, reflecting a 0.5% dividend yield.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report)'s share price dropped 9.8% during mid-day trading on Tuesday . The company traded as low as $135.67 and last traded at $133.91. Approximately 476,625 shares traded hands during mid-day trading, a decline of 33% from the average daily volume of 715,943 shares. The stock had previously closed at $148.50.

Analyst Ratings Changes

Several brokerages have recently commented on WMS. Oppenheimer reissued an "outperform" rating on shares of Advanced Drainage Systems in a research note on Friday, August 8th. UBS Group reissued a "buy" rating and issued a $167.00 target price (up previously from $146.00) on shares of Advanced Drainage Systems in a report on Friday, August 8th. Robert W. Baird set a $166.00 price objective on shares of Advanced Drainage Systems in a research report on Friday, August 8th. KeyCorp raised their price objective on shares of Advanced Drainage Systems from $140.00 to $159.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. Finally, Wall Street Zen raised Advanced Drainage Systems from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Seven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $152.56.

Advanced Drainage Systems Stock Down 3.5%

The stock has a fifty day moving average of $130.04 and a two-hundred day moving average of $118.03. The company has a quick ratio of 2.25, a current ratio of 3.22 and a debt-to-equity ratio of 0.82. The stock has a market cap of $11.01 billion, a price-to-earnings ratio of 25.56, a PEG ratio of 1.95 and a beta of 1.26.

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

Advanced Drainage Systems Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 29th will be paid a $0.18 dividend. The ex-dividend date is Friday, August 29th. This represents a $0.72 annualized dividend and a dividend yield of 0.5%. Advanced Drainage Systems's dividend payout ratio is 13.00%.

Institutional Investors Weigh In On Advanced Drainage Systems

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Bessemer Group Inc. grew its holdings in Advanced Drainage Systems by 76.2% during the 1st quarter. Bessemer Group Inc. now owns 266 shares of the construction company's stock worth $29,000 after acquiring an additional 115 shares in the last quarter. Teacher Retirement System of Texas boosted its stake in Advanced Drainage Systems by 97.6% during the 1st quarter. Teacher Retirement System of Texas now owns 10,769 shares of the construction company's stock valued at $1,170,000 after purchasing an additional 5,319 shares during the period. Allspring Global Investments Holdings LLC grew its position in Advanced Drainage Systems by 15.6% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 18,914 shares of the construction company's stock worth $2,061,000 after purchasing an additional 2,559 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Advanced Drainage Systems by 167.1% during the first quarter. GAMMA Investing LLC now owns 812 shares of the construction company's stock valued at $88,000 after buying an additional 508 shares during the last quarter. Finally, Vident Advisory LLC grew its holdings in Advanced Drainage Systems by 23.0% in the 4th quarter. Vident Advisory LLC now owns 1,907 shares of the construction company's stock worth $220,000 after buying an additional 356 shares in the last quarter. 89.83% of the stock is currently owned by hedge funds and other institutional investors.

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.