Advanced Drainage Systems (NYSE:WMS) Stock Rating Reaffirmed as Buy by DA Davidson

Advanced Drainage Systems (NYSE:WMS - Get Free Report)'s stock had its "buy" rating reissued by equities researchers at DA Davidson in a research report issued to clients and investors on Tuesday, Benzinga reports. They presently have a $190.00 target price on the construction company's stock. DA Davidson's price target would indicate a potential upside of 45.80% from the stock's current price.

WMS has been the subject of a number of other reports. Jefferies Financial Group started coverage on Advanced Drainage Systems in a research report on Thursday, June 11th. They issued a "buy" rating and a $175.00 price objective for the company. National Bank Financial set a $190.00 target price on shares of Advanced Drainage Systems in a research note on Monday, August 24th. Zacks Research raised Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a research report on Monday, July 27th. Royal Bank Of Canada increased their price objective on shares of Advanced Drainage Systems from $170.00 to $178.00 and gave the stock an "outperform" rating in a research note on Friday, August 7th. Finally, Barclays increased their price objective on shares of Advanced Drainage Systems from $181.00 to $191.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 14th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $188.70.

Advanced Drainage Systems Stock Performance

Shares of NYSE WMS opened at $130.32 on Tuesday. The business has a fifty day simple moving average of $136.54 and a 200 day simple moving average of $140.61. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95. The firm has a market capitalization of $9.83 billion, a price-to-earnings ratio of 22.55, a PEG ratio of 1.39 and a beta of 1.29. Advanced Drainage Systems has a one year low of $124.61 and a one year high of $179.32.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last issued its earnings results on Thursday, August 6th. The construction company reported $2.49 EPS for the quarter, beating analysts' consensus estimates of $2.10 by $0.39. Advanced Drainage Systems had a return on equity of 28.28% and a net margin of 14.00%.The business had revenue of $1 billion during the quarter, compared to analyst estimates of $991.39 million. During the same period in the prior year, the company posted $1.95 earnings per share. Advanced Drainage Systems's revenue was up 20.6% on a year-over-year basis. Sell-side analysts expect that Advanced Drainage Systems will post 6.62 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. SkyView Investment Advisors LLC acquired a new position in Advanced Drainage Systems during the second quarter valued at approximately $283,000. Tidal Investments LLC raised its stake in Advanced Drainage Systems by 7.4% during the second quarter. Tidal Investments LLC now owns 9,471 shares of the construction company's stock worth $1,487,000 after acquiring an additional 652 shares in the last quarter. IFP Advisors Inc increased its position in Advanced Drainage Systems by 95.4% during the 2nd quarter. IFP Advisors Inc now owns 2,581 shares of the construction company's stock valued at $405,000 after purchasing an additional 1,260 shares during the period. Baird Financial Group Inc. increased its position in Advanced Drainage Systems by 560.7% during the 2nd quarter. Baird Financial Group Inc. now owns 128,123 shares of the construction company's stock valued at $20,110,000 after purchasing an additional 108,732 shares during the period. Finally, Nykredit A S acquired a new stake in Advanced Drainage Systems during the 2nd quarter valued at approximately $324,000. 89.83% of the stock is currently owned by institutional investors and hedge funds.

Key Advanced Drainage Systems News

Here are the key news stories impacting Advanced Drainage Systems this week:

• Positive Sentiment: Strategic acquisition expands stormwater capabilities: ADS agreed to acquire StormTrap Investments from PSP Capital for approximately $530 million. StormTrap provides highly engineered, large-volume stormwater systems for space-constrained projects, which should broaden ADS’s product portfolio and exposure to infrastructure and water-management demand. Advanced Drainage Systems Announces Acquisition of StormTrap Investments LLC From PSP Capital
• Positive Sentiment: Analyst support remains intact: DA Davidson kept its “Buy” rating on WMS, signaling continued confidence in the company’s growth outlook and the potential benefits of its acquisition strategy. Advanced Drainage Systems Stock Keeps Buy Rating at DA Davidson
• Neutral Sentiment: Sell-side consensus is favorable but not unanimously bullish: Brokerages collectively rate Advanced Drainage Systems “Moderate Buy,” providing a supportive backdrop but suggesting expectations are not strong enough to constitute an unequivocal buy signal. Advanced Drainage Systems Stock Rated Moderate Buy by Sell-Side Brokerages
• Negative Sentiment: Investors may be weighing transaction and integration risk: The $530 million purchase represents a significant capital commitment. Until ADS provides further details on financing, expected earnings contribution and integration, investors may remain cautious despite the strategic rationale.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc NYSE: WMS designs and manufactures water management solutions for infrastructure, construction, agriculture and residential applications. The company is best known for its thermoplastic corrugated pipe and related products used to manage stormwater, drainage and wastewater.

Its product portfolio includes stormwater detention and treatment systems, drainage pipe, septic wastewater systems, fittings, chambers, pumps and other water management components. Advanced Drainage Systems also provides products for agricultural drainage, commercial and residential construction, and large-scale infrastructure projects.

Founded in 1966 and headquartered in Hilliard, Ohio, the company serves customers primarily across North America through manufacturing facilities, distribution centers and a network of independent distributors.