Advanced Drainage Systems (NYSE:WMS) Stock Price Down 9.8% - What's Next?

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.

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

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Royal Bank Of Canada started coverage on Advanced Drainage Systems in a research note on Monday, August 11th. They issued an "outperform" rating and a $159.00 price objective on the stock. KeyCorp upped their price objective on shares of Advanced Drainage Systems from $140.00 to $159.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. Loop Capital decreased their price objective on Advanced Drainage Systems from $143.00 to $133.00 and set a "buy" rating for the company in a report on Friday, May 16th. UBS Group restated a "buy" rating and issued a $167.00 price objective (up previously from $146.00) on shares of Advanced Drainage Systems in a report on Friday, August 8th. Finally, Barclays raised their target price on shares of Advanced Drainage Systems from $135.00 to $160.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Seven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $152.56.

Advanced Drainage Systems Trading Down 8.5%

The company has a debt-to-equity ratio of 0.82, a current ratio of 3.22 and a quick ratio of 2.25. The business's 50-day moving average price is $128.20 and its two-hundred day moving average price is $117.28. The company has a market capitalization of $10.56 billion, a price-to-earnings ratio of 24.50, a P/E/G ratio of 1.97 and a beta of 1.26.

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

Advanced Drainage Systems Announces Dividend

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

Institutional Investors Weigh In On Advanced Drainage Systems

Several hedge funds and other institutional investors have recently made changes to their positions in WMS. Bessemer Group Inc. grew its position in Advanced Drainage Systems by 76.2% in the 1st quarter. Bessemer Group Inc. now owns 266 shares of the construction company's stock worth $29,000 after purchasing an additional 115 shares in the last quarter. Teacher Retirement System of Texas lifted its stake in Advanced Drainage Systems by 97.6% in the 1st quarter. Teacher Retirement System of Texas now owns 10,769 shares of the construction company's stock worth $1,170,000 after purchasing an additional 5,319 shares in the last quarter. Allspring Global Investments Holdings LLC increased its holdings in shares of 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 buying an additional 2,559 shares during the last quarter. GAMMA Investing LLC grew its holdings in Advanced Drainage Systems by 167.1% in the 1st quarter. GAMMA Investing LLC now owns 812 shares of the construction company's stock worth $88,000 after acquiring 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 acquiring an additional 356 shares during the last quarter. 89.83% of the stock is owned by institutional investors.

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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