Federated Hermes Inc. Cuts Stock Position in Advanced Drainage Systems, Inc. (NYSE:WMS)

Key Points

• Federated Hermes Inc. reduced its holdings in Advanced Drainage Systems, selling 2,472 shares and owning 41,206 shares after a 5.7% decrease.
• The company reported earnings of $1.03 EPS for the last quarter, missing estimates, with a revenue of $615.76 million, down 5.8% year-over-year.
• Advanced Drainage Systems increased its quarterly dividend from $0.16 to $0.18 per share, reflecting a yield of 0.6% and a payout ratio of 12.50%.

Federated Hermes Inc. cut its position in Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) by 5.7% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 41,206 shares of the construction company's stock after selling 2,472 shares during the quarter. Federated Hermes Inc. owned about 0.05% of Advanced Drainage Systems worth $4,477,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. NBC Securities Inc. bought a new stake in Advanced Drainage Systems in the 1st quarter valued at $26,000. Bessemer Group Inc. increased its stake in shares of Advanced Drainage Systems by 76.2% in the first quarter. Bessemer Group Inc. now owns 266 shares of the construction company's stock valued at $29,000 after buying an additional 115 shares during the period. Signaturefd LLC boosted its position in shares of Advanced Drainage Systems by 110.7% during the 1st quarter. Signaturefd LLC now owns 670 shares of the construction company's stock valued at $73,000 after purchasing an additional 352 shares in the last quarter. Mascagni Wealth Management Inc. bought a new stake in shares of Advanced Drainage Systems during the 4th quarter valued at about $74,000. Finally, GAMMA Investing LLC boosted its holdings in Advanced Drainage Systems by 167.1% in the first quarter. GAMMA Investing LLC now owns 812 shares of the construction company's stock worth $88,000 after acquiring an additional 508 shares in the last quarter. 89.83% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. UBS Group decreased their target price on Advanced Drainage Systems from $155.00 to $146.00 and set a "buy" rating for the company in a research report on Friday, May 16th. Robert W. Baird dropped their price target on Advanced Drainage Systems from $146.00 to $141.00 and set an "outperform" rating for the company in a research note on Friday, May 16th. Wall Street Zen downgraded Advanced Drainage Systems from a "hold" rating to a "sell" rating in a report on Saturday, July 26th. Loop Capital decreased their price objective on Advanced Drainage Systems from $143.00 to $133.00 and set a "buy" rating on the stock in a report on Friday, May 16th. Finally, KeyCorp decreased their price objective on Advanced Drainage Systems from $180.00 to $135.00 and set an "overweight" rating on the stock in a report on Tuesday, April 8th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat, Advanced Drainage Systems presently has an average rating of "Moderate Buy" and a consensus price target of $139.88.

Advanced Drainage Systems Trading Up 3.7%

Shares of NYSE:WMS traded up $4.22 during trading hours on Tuesday, hitting $117.26. 838,887 shares of the company's stock traded hands, compared to its average volume of 606,582. The company has a debt-to-equity ratio of 0.90, a current ratio of 3.33 and a quick ratio of 2.10. The firm has a market capitalization of $9.10 billion, a P/E ratio of 20.36, a price-to-earnings-growth ratio of 1.64 and a beta of 1.27. The business has a fifty day moving average price of $115.29 and a 200-day moving average price of $114.33. Advanced Drainage Systems, Inc. has a 1 year low of $93.92 and a 1 year high of $166.03.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last released its earnings results on Thursday, May 15th. The construction company reported $1.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.09 by ($0.06). Advanced Drainage Systems had a net margin of 15.50% and a return on equity of 32.33%. The firm had revenue of $615.76 million during the quarter, compared to analyst estimates of $653.22 million. During the same period in the previous year, the company earned $1.23 earnings per share. Advanced Drainage Systems's revenue was down 5.8% on a year-over-year basis. Equities analysts expect that Advanced Drainage Systems, Inc. will post 6.1 earnings per share for the current year.

Advanced Drainage Systems Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 16th. Shareholders of record on Friday, May 30th were issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 0.6%. This is a boost from Advanced Drainage Systems's previous quarterly dividend of $0.16. The ex-dividend date of this dividend was Friday, May 30th. Advanced Drainage Systems's dividend payout ratio is 12.50%.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators.