Advanced Drainage Systems (NYSE:WMS) Earns Outperform Rating from Oppenheimer

Key Points

• Oppenheimer reiterated its Outperform rating on Advanced Drainage Systems but lowered its price target from $185 to $180; the new target implies 46.44% upside from the cited closing price.
• Quarterly results were mixed: EPS of $1.88 beat the cited $1.81 consensus, while revenue of $889.4 million fell short of the $921.8 million estimate and EPS was down from $1.97 a year earlier.
• Analyst sentiment remained broadly positive, with eight Buy ratings and two Hold ratings and a consensus “Moderate Buy” rating; the article also notes a guidance cut.

Advanced Drainage Systems (NYSE:WMS - Get Free Report)'s stock had its "outperform" rating reissued by equities research analysts at Oppenheimer in a research note issued on Friday, Benzinga reports. They presently have a $180.00 target price on the construction company's stock, down from their prior target price of $185.00. Oppenheimer's target price indicates a potential upside of 46.44% from the company's previous close.

WMS has been the topic of a number of other research reports. Stephens reaffirmed an "overweight" rating and issued a $175.00 price target on shares of Advanced Drainage Systems in a research report on Monday, September 21st. DA Davidson set a $180.00 price target on shares of Advanced Drainage Systems in a research note on Friday. Royal Bank Of Canada lowered their price target on shares of Advanced Drainage Systems from $178.00 to $170.00 and set an "outperform" rating for the company in a report on Wednesday, October 14th. Zacks Research raised shares of Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a research report on Monday, July 27th. Finally, National Bank Financial set a $190.00 target price on shares of Advanced Drainage Systems in a research note on Monday, August 24th. Eight research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Advanced Drainage Systems has a consensus rating of "Moderate Buy" and an average price target of $185.10.

Advanced Drainage Systems Stock Up 0.2%

Shares of WMS traded up $0.28 during mid-day trading on Friday, hitting $122.91. 368,389 shares of the company's stock were exchanged, compared to its average volume of 823,025. The company has a market cap of $9.27 billion, a price-to-earnings ratio of 21.23, a P/E/G ratio of 1.65 and a beta of 1.30. Advanced Drainage Systems has a fifty-two week low of $119.53 and a fifty-two week high of $179.32. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.18 and a current ratio of 2.12. The stock's 50-day moving average is $130.34 and its 200-day moving average is $143.25.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The construction company reported $1.88 earnings per share for the quarter, beating analysts' consensus estimates of $1.81 by $0.07. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The firm had revenue of $889.41 million during the quarter, compared to analysts' expectations of $921.79 million. During the same quarter in the previous year, the business posted $1.97 earnings per share. The business's quarterly revenue was up 4.6% compared to the same quarter last year. On average, sell-side analysts anticipate that Advanced Drainage Systems will post 6.57 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of WMS. BlackRock Inc. purchased a new stake in Advanced Drainage Systems in the 2nd quarter valued at approximately $1,172,482,000. Bamco Inc. NY purchased a new stake in shares of Advanced Drainage Systems in the second quarter valued at approximately $106,800,000. Hill City Capital LP purchased a new stake in shares of Advanced Drainage Systems in the second quarter valued at approximately $75,341,000. Bank of New York Mellon Corp acquired a new position in Advanced Drainage Systems during the second quarter worth $74,104,000. Finally, Pictet Asset Management Holding SA grew its holdings in Advanced Drainage Systems by 33.4% during the third quarter. Pictet Asset Management Holding SA now owns 1,505,017 shares of the construction company's stock worth $190,712,000 after acquiring an additional 377,043 shares during the period. Institutional investors and hedge funds own 89.83% of the company's stock.

Key Advanced Drainage Systems News

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

• Positive Sentiment: Barclays lowered its price target to $183 from $191 but kept its “overweight” rating. The new target still indicates substantial upside from the price cited in the report. Tickerreport article
• Neutral Sentiment: ADS declared a quarterly dividend of $0.20 per share, payable December 15 to shareholders of record December 1. The annualized dividend is $0.80, a yield of about 0.6%. Dividend details
• Negative Sentiment: Fiscal Q2 revenue was $889.4 million, below analysts’ $921.8 million estimate. EPS was $1.88: above the $1.81 consensus cited in one report, but just below Zacks’ $1.89 estimate and down from $1.97 a year earlier. Earnings coverage
• Negative Sentiment: Coverage also flagged a guidance cut, adding to concerns raised by the revenue miss and contributing to the negative reaction to the results. Guidance coverage

Advanced Drainage Systems Company Profile

Advanced Drainage Systems, Inc NYSE: WMS is a manufacturer of water management products and solutions. The company produces thermoplastic corrugated pipe, fittings, drainage structures, stormwater chambers and related products used to manage the collection, conveyance, storage and treatment of water.

Its products serve a range of markets, including residential, commercial, agricultural, infrastructure and environmental applications. Advanced Drainage Systems supplies solutions for stormwater management, septic and wastewater systems, highway and road construction, land development, agriculture and erosion control.

Founded in 1966 and headquartered in Hilliard, Ohio, the company serves customers through a manufacturing and distribution network primarily covering the United States and Canada, with additional international operations.

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