Advanced Drainage Systems, Inc. (NYSE:WMS) Stock Has Average Price Target of $188.70 According to Analysts

Key Points

• Analysts maintain a Moderate Buy consensus on Advanced Drainage Systems, with seven buy ratings, two holds and one strong buy; the average 12-month price target is $188.70.
• The company exceeded quarterly expectations, reporting $2.49 in EPS versus a $2.10 estimate and $1 billion in revenue, up 20.6% year over year.
• Advanced Drainage Systems paid a quarterly dividend of $0.20 per share, equal to an annualized $0.80 dividend and a 0.6% yield, while institutional investors own nearly 90% of the stock.

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the ten ratings firms that are currently covering the company, MarketBeat reports. Two investment analysts have rated the stock with a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $188.70.

WMS has been the topic of a number of recent analyst reports. Stephens reaffirmed an "overweight" rating and set a $175.00 price target on shares of Advanced Drainage Systems in a research report on Monday, September 21st. Zacks Research upgraded Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a research note on Monday, July 27th. Royal Bank Of Canada upped their target price on Advanced Drainage Systems from $170.00 to $178.00 and gave the company an "outperform" rating in a research report on Friday, August 7th. KeyCorp reiterated an "overweight" rating on shares of Advanced Drainage Systems in a research note on Monday, June 22nd. Finally, DA Davidson began coverage on Advanced Drainage Systems in a report on Tuesday, August 25th. They issued a "buy" rating and a $190.00 price target for the company.

Advanced Drainage Systems Stock Up 1.8%

Shares of Advanced Drainage Systems stock opened at $129.54 on Tuesday. The company has a quick ratio of 1.18, a current ratio of 2.12 and a debt-to-equity ratio of 0.95. The company has a market cap of $9.77 billion, a P/E ratio of 22.37, a PEG ratio of 1.39 and a beta of 1.29. The firm's 50 day moving average price is $136.54 and its 200-day moving average price is $140.61. Advanced Drainage Systems has a 52-week low of $124.61 and a 52-week high of $179.32.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last posted its earnings results on Thursday, August 6th. The construction company reported $2.49 EPS for the quarter, beating analysts' consensus estimates of $2.10 by $0.39. The company 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%. Advanced Drainage Systems's revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.95 earnings per share. On average, sell-side analysts predict that Advanced Drainage Systems will post 6.62 EPS for the current fiscal year.

Advanced Drainage Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were issued a dividend of $0.20 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.6%. Advanced Drainage Systems's payout ratio is 13.82%.

Institutional Investors Weigh In On Advanced Drainage Systems

Large investors have recently bought and sold shares of the company. SkyView Investment Advisors LLC purchased a new stake in shares of Advanced Drainage Systems in the 2nd quarter valued at $283,000. Tidal Investments LLC lifted its holdings in Advanced Drainage Systems by 7.4% in the second quarter. Tidal Investments LLC now owns 9,471 shares of the construction company's stock valued at $1,487,000 after acquiring an additional 652 shares during the period. IFP Advisors Inc lifted its holdings in Advanced Drainage Systems by 95.4% in the second quarter. IFP Advisors Inc now owns 2,581 shares of the construction company's stock valued at $405,000 after acquiring an additional 1,260 shares during the period. Baird Financial Group Inc. boosted its position in Advanced Drainage Systems by 560.7% in the 2nd quarter. Baird Financial Group Inc. now owns 128,123 shares of the construction company's stock worth $20,110,000 after purchasing an additional 108,732 shares in the last quarter. Finally, Nykredit A S purchased a new stake in Advanced Drainage Systems in the 2nd quarter worth approximately $324,000. Hedge funds and other institutional investors own 89.83% of the company's stock.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc NYSE: WMS designs and manufactures water management solutions for infrastructure, construction, agriculture and residential applications. The company is best known for its thermoplastic corrugated pipe and related products used to manage stormwater, drainage and wastewater.

Its product portfolio includes stormwater detention and treatment systems, drainage pipe, septic wastewater systems, fittings, chambers, pumps and other water management components. Advanced Drainage Systems also provides products for agricultural drainage, commercial and residential construction, and large-scale infrastructure projects.

Founded in 1966 and headquartered in Hilliard, Ohio, the company serves customers primarily across North America through manufacturing facilities, distribution centers and a network of independent distributors.

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