DA Davidson Initiates Coverage on Advanced Drainage Systems (NYSE:WMS)

Key Points

• DA Davidson initiated coverage of Advanced Drainage Systems with a “buy” rating and a $190 price target, implying 35.37% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $188.70.
• Advanced Drainage Systems reported quarterly EPS of $2.49, beating estimates by $0.39, while revenue reached $1 billion, up 20.6% year over year and above expectations.
• WMS shares opened at $140.35, down 2.4%, and institutional investors own approximately 89.83% of the company’s stock.

DA Davidson started coverage on shares of Advanced Drainage Systems (NYSE:WMS - Get Free Report) in a research report issued to clients and investors on Tuesday. The brokerage set a "buy" rating and a $190.00 price target on the construction company's stock. DA Davidson's target price would suggest a potential upside of 35.37% from the stock's previous close.

WMS has been the topic of a number of other research reports. KeyCorp reaffirmed an "overweight" rating on shares of Advanced Drainage Systems in a research report on Monday, June 22nd. Barclays increased their price objective on Advanced Drainage Systems from $181.00 to $191.00 and gave the company an "overweight" rating in a report on Tuesday, July 14th. Zacks Research raised Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. Weiss Ratings reiterated a "hold (c)" rating on shares of Advanced Drainage Systems in a research note on Friday, July 17th. Finally, Jefferies Financial Group initiated coverage on shares of Advanced Drainage Systems in a report on Thursday, June 11th. They issued a "buy" rating and a $175.00 price target for the company. Eight research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $188.70.

Advanced Drainage Systems Stock Down 2.4%

NYSE:WMS opened at $140.35 on Tuesday. 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 cap of $10.58 billion, a PE ratio of 24.24, a price-to-earnings-growth ratio of 1.57 and a beta of 1.27. The company has a 50-day moving average of $146.34 and a 200 day moving average of $147.14. 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 results on Thursday, August 6th. The construction company reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.10 by $0.39. The firm had revenue of $1 billion during the quarter, compared to analysts' expectations of $991.39 million. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The company's revenue was up 20.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.95 EPS. As a group, research analysts anticipate that Advanced Drainage Systems will post 6.62 EPS for the current fiscal year.

Hedge Funds Weigh In On Advanced Drainage Systems

Institutional investors and hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System raised its position in Advanced Drainage Systems by 15,172.0% during the second quarter. California State Teachers Retirement System now owns 13,246,953 shares of the construction company's stock valued at $2,079,242,000 after acquiring an additional 13,160,213 shares in the last quarter. BlackRock Inc. acquired a new position in Advanced Drainage Systems in the second quarter valued at approximately $1,172,482,000. State Street Corp boosted its position in Advanced Drainage Systems by 3.1% in the 3rd quarter. State Street Corp now owns 2,551,901 shares of the construction company's stock worth $353,949,000 after purchasing an additional 75,777 shares in the last quarter. Pictet Asset Management Holding SA boosted its position in Advanced Drainage Systems by 32.9% in 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 in the last quarter. Finally, Amundi grew its stake in shares of Advanced Drainage Systems by 0.7% during the 1st quarter. Amundi now owns 1,288,672 shares of the construction company's stock worth $176,734,000 after purchasing an additional 9,096 shares during the period. Institutional investors and hedge funds own 89.83% of the company's stock.

About Advanced Drainage Systems

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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