Advanced Drainage Systems (NYSE:WMS) Stock Price Target Lowered at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut its WMS price target from $170 to $163 but maintained an “outperform” rating; its new target implies about 31.9% upside from the reported share price.
• Analyst sentiment remains broadly positive: eight analysts rate the stock a Buy and two a Hold, with a consensus target of $184.40 and an overall “Moderate Buy” rating.
• In its latest quarter, Advanced Drainage Systems beat one consensus EPS estimate with $1.88 per share, but revenue of $889.4 million missed expectations; coverage also cited a guidance cut.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) had its target price dropped by equities researchers at Royal Bank Of Canada from $170.00 to $163.00 in a research report issued on Friday, Benzinga reports. The firm currently has an "outperform" rating on the construction company's stock. Royal Bank Of Canada's target price suggests a potential upside of 31.91% from the company's current price.

WMS has been the subject of several other research reports. UBS Group lifted their price objective on Advanced Drainage Systems from $205.00 to $207.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Stephens restated an "overweight" rating and set a $175.00 target price on shares of Advanced Drainage Systems in a report on Monday, September 21st. National Bank Financial set a $190.00 target price on Advanced Drainage Systems in a research note on Monday, August 24th. Robert W. Baird set a $206.00 price target on Advanced Drainage Systems in a report on Friday, August 7th. Finally, Barclays reduced their price target on shares of Advanced Drainage Systems from $191.00 to $183.00 and set an "overweight" rating on the stock in a research report on Friday. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $184.40.

Advanced Drainage Systems Price Performance

NYSE WMS traded up $0.94 on Friday, reaching $123.56. The company's stock had a trading volume of 394,323 shares, compared to its average volume of 823,226. The firm has a market cap of $9.32 billion, a PE ratio of 21.34, a price-to-earnings-growth ratio of 1.65 and a beta of 1.30. The business has a 50-day moving average price of $130.34 and a 200 day moving average price of $143.25. Advanced Drainage Systems has a 52 week low of $119.53 and a 52 week high of $179.32. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95.

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

Hedge Funds Weigh In On Advanced Drainage Systems

Institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in Advanced Drainage Systems in the second quarter valued at $1,172,482,000. Pictet Asset Management Holding SA boosted its position 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 valued at $190,712,000 after acquiring an additional 377,043 shares during the last quarter. Amundi grew its holdings in Advanced Drainage Systems by 5.1% during the 2nd quarter. Amundi now owns 1,354,610 shares of the construction company's stock worth $212,681,000 after acquiring an additional 65,938 shares during the period. KBC Group NV grew its holdings in Advanced Drainage Systems by 1.7% during the 1st quarter. KBC Group NV now owns 916,981 shares of the construction company's stock worth $125,746,000 after acquiring an additional 14,915 shares during the period. Finally, Bamco Inc. NY acquired a new stake in Advanced Drainage Systems during the 2nd quarter worth about $106,800,000. Institutional investors own 89.83% of the company's stock.

More 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

About Advanced Drainage Systems

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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