Advanced Drainage Systems, Inc. (NYSE:WMS) Stock Has Average Price Target of $187.40

Key Points

• Advanced Drainage Systems has a “Moderate Buy” consensus rating from 10 analysts, with eight buy ratings and two holds. The average 12-month price target is $187.40, well above the reported share price of $135.43.
• The company reported quarterly EPS of $2.49, beating expectations of $2.10, while revenue rose 20.6% year over year to approximately $1 billion.
• Advanced Drainage Systems declared a quarterly dividend of $0.20 per share, equivalent to an annualized $0.80 dividend and a 0.6% yield. Institutional investors own approximately 89.83% of the company’s stock.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the ten ratings firms that are covering the company, MarketBeat.com reports. Two analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $187.40.

A number of equities research analysts recently weighed in on WMS shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Advanced Drainage Systems in a report on Thursday, October 15th. Oppenheimer cut their target price on shares of Advanced Drainage Systems from $190.00 to $185.00 and set an "outperform" rating on the stock in a research note on Friday, October 9th. Zacks Research raised Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. Stephens reissued an "overweight" rating and set a $175.00 target price on shares of Advanced Drainage Systems in a research note on Monday, September 21st. Finally, Barclays increased their price target on Advanced Drainage Systems from $181.00 to $191.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 14th.

Advanced Drainage Systems Stock Down 0.8%

NYSE WMS opened at $135.43 on Friday. The stock has a market cap of $10.21 billion, a PE ratio of 23.39, a P/E/G ratio of 1.57 and a beta of 1.29. Advanced Drainage Systems has a fifty-two week low of $122.84 and a fifty-two week high of $179.32. The business has a 50 day moving average price of $130.83 and a two-hundred day moving average price of $143.70. The company has a quick ratio of 1.18, a current ratio of 2.12 and a debt-to-equity ratio of 0.95.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The construction company reported $2.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.10 by $0.39. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The company had revenue of $1 billion during the quarter, compared to the consensus estimate of $991.39 million. During the same quarter last year, the company earned $1.95 earnings per share. Advanced Drainage Systems's revenue for the quarter was up 20.6% on a year-over-year basis. As a group, sell-side analysts predict that Advanced Drainage Systems will post 6.57 EPS for the current fiscal year.

Advanced Drainage Systems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a dividend of $0.20 per share. The ex-dividend date was Tuesday, September 1st. This represents a $0.80 annualized dividend and a dividend yield of 0.6%. Advanced Drainage Systems's dividend payout ratio (DPR) is 13.82%.

Institutional Trading of Advanced Drainage Systems

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allworth Financial LP bought a new position in shares of Advanced Drainage Systems during the 2nd quarter valued at about $26,000. Avalon Trust Co acquired a new position in shares of Advanced Drainage Systems in the 2nd quarter worth approximately $42,000. Vega Investment Solutions bought a new stake in shares of Advanced Drainage Systems in the 2nd quarter worth approximately $50,000. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Advanced Drainage Systems in the 2nd quarter worth approximately $55,000. Finally, Bessemer Group Inc. raised its holdings in shares of Advanced Drainage Systems by 70.3% in the 1st quarter. Bessemer Group Inc. now owns 395 shares of the construction company's stock worth $54,000 after purchasing an additional 163 shares in the last quarter. Institutional investors own 89.83% of the company's stock.

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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