Advanced Drainage Systems (NYSE:WMS) Rating Increased to Strong-Buy at DA Davidson

Key Points

• DA Davidson upgraded Advanced Drainage Systems to “strong buy,” adding to an overall “Moderate Buy” consensus. Analysts’ average price target is $188.70.
• The company reported strong quarterly results, with EPS of $2.49 versus the $2.10 consensus estimate and revenue of approximately $1 billion, up 20.6% year over year.
• Institutional investors own approximately 89.83% of the company, with major firms including BlackRock and Pictet Asset Management increasing or initiating positions.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) was upgraded by equities research analysts at DA Davidson to a "strong-buy" rating in a research note issued on Monday,Zacks.com reports.

Several other research analysts have also recently issued reports on the stock. Weiss Ratings restated a "hold (c)" rating on shares of Advanced Drainage Systems in a report on Friday, July 17th. Oppenheimer decreased their price objective on Advanced Drainage Systems from $195.00 to $190.00 and set an "outperform" rating for the company in a research report on Tuesday, May 26th. National Bank Financial set a $190.00 price objective on shares of Advanced Drainage Systems in a research report on Monday. Robert W. Baird set a $206.00 price objective on shares of Advanced Drainage Systems in a research report on Friday, August 7th. Finally, Barclays raised their target price 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. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Advanced Drainage Systems presently has an average rating of "Moderate Buy" and an average price target of $188.70.

Advanced Drainage Systems Price Performance

WMS stock opened at $141.52 on Monday. The company has a debt-to-equity ratio of 0.95, a current ratio of 2.12 and a quick ratio of 1.18. The firm has a market capitalization of $10.67 billion, a P/E ratio of 24.44, a P/E/G ratio of 1.54 and a beta of 1.27. The business's 50-day moving average is $146.30 and its two-hundred day moving average is $147.00. Advanced Drainage Systems has a 1 year low of $128.03 and a 1 year high of $179.32.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The construction company reported $2.49 EPS for the quarter, topping 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 the consensus estimate of $991.39 million. During the same period in the previous year, the company posted $1.95 earnings per share. The business's revenue for the quarter was up 20.6% on a year-over-year basis. Analysts anticipate that Advanced Drainage Systems will post 6.62 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. HighTower Advisors LLC lifted its holdings in shares of Advanced Drainage Systems by 406.0% in the fourth quarter. HighTower Advisors LLC now owns 27,302 shares of the construction company's stock valued at $3,954,000 after purchasing an additional 21,906 shares in the last quarter. Pier Capital LLC increased its stake in shares of Advanced Drainage Systems by 69,891.7% during the 4th quarter. Pier Capital LLC now owns 50,394 shares of the construction company's stock worth $7,299,000 after purchasing an additional 50,322 shares in the last quarter. BlackRock Inc. purchased a new position in shares of Advanced Drainage Systems during the 2nd quarter worth approximately $1,172,482,000. Mirabaud Asset Management Ltd acquired a new position in shares of Advanced Drainage Systems during the 4th quarter worth approximately $3,283,000. Finally, Pictet Asset Management Holding SA raised its position in shares of Advanced Drainage Systems by 32.9% during the 1st quarter. Pictet Asset Management Holding SA now owns 2,204,801 shares of the construction company's stock worth $302,290,000 after purchasing an additional 546,298 shares during the last quarter. Institutional investors and hedge funds own 89.83% of the company's stock.

Advanced Drainage Systems Company Profile

Advanced Drainage Systems, Inc NYSE: WMS is a leading manufacturer and supplier of water management solutions in North America. Headquartered in Hilliard, Ohio, the company specializes in the design, production and distribution of high-density polyethylene (HDPE) drainage pipe and related products. Its core business addresses stormwater management, on-site septic systems and erosion control for residential, commercial and infrastructure projects.

The company's product portfolio includes corrugated plastic pipe, tubing, fittings, geocells, geogrids and stormwater structures such as inlets, manholes and detention/retention systems.

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