Advanced Drainage Systems, Inc. $WMS Shares Sold by Baillie Gifford & Co.

Key Points

• Baillie Gifford & Co. trimmed its stake in Advanced Drainage Systems (NYSE:WMS) by 6.3% in Q4, selling 151,057 shares and leaving it with 2,244,014 shares (2.89% ownership) valued at about $325.0 million, while institutional investors collectively own 89.83% of the company.
• ADS beat Q4 expectations with $1.27 EPS vs. $1.11 consensus and revenue of $693.35 million (vs. $686.37M expected), reporting a 15.75% net margin and a 27.72% return on equity.
• Analysts are broadly positive—consensus rating is a "Moderate Buy" with a $191 target—while the stock trades at a $11.47 billion market cap and a P/E of 24.5, with recent price targets ranging roughly $181–$215.

Baillie Gifford & Co. decreased its stake in Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) by 6.3% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,244,014 shares of the construction company's stock after selling 151,057 shares during the period. Baillie Gifford & Co. owned 2.89% of Advanced Drainage Systems worth $325,001,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Bridges Investment Management Inc. boosted its stake in Advanced Drainage Systems by 32.9% during the 3rd quarter. Bridges Investment Management Inc. now owns 28,122 shares of the construction company's stock worth $3,901,000 after purchasing an additional 6,960 shares during the period. Mediolanum International Funds Ltd acquired a new stake in Advanced Drainage Systems during the 3rd quarter worth $24,314,000. Essex Investment Management Co. LLC boosted its stake in Advanced Drainage Systems by 345.7% during the 3rd quarter. Essex Investment Management Co. LLC now owns 42,898 shares of the construction company's stock worth $5,950,000 after purchasing an additional 33,274 shares during the period. Pacer Advisors Inc. acquired a new stake in Advanced Drainage Systems during the 3rd quarter worth $1,321,000. Finally, Asset Management One Co. Ltd. boosted its stake in Advanced Drainage Systems by 29.7% during the 3rd quarter. Asset Management One Co. Ltd. now owns 19,982 shares of the construction company's stock worth $2,772,000 after purchasing an additional 4,574 shares during the period. Institutional investors and hedge funds own 89.83% of the company's stock.

Advanced Drainage Systems Stock Performance

NYSE:WMS opened at $147.23 on Monday. The company has a current ratio of 4.12, a quick ratio of 3.08 and a debt-to-equity ratio of 0.72. The firm has a 50-day moving average price of $153.28 and a two-hundred day moving average price of $149.12. Advanced Drainage Systems, Inc. has a twelve month low of $100.50 and a twelve month high of $179.32. The company has a market capitalization of $11.47 billion, a P/E ratio of 24.50, a price-to-earnings-growth ratio of 1.57 and a beta of 1.37.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last posted its earnings results on Thursday, February 5th. The construction company reported $1.27 earnings per share for the quarter, beating the consensus estimate of $1.11 by $0.16. Advanced Drainage Systems had a net margin of 15.75% and a return on equity of 27.72%. The firm had revenue of $693.35 million during the quarter, compared to the consensus estimate of $686.37 million. During the same period last year, the firm posted $1.09 EPS. The firm's revenue for the quarter was up .4% on a year-over-year basis. As a group, research analysts expect that Advanced Drainage Systems, Inc. will post 6.1 earnings per share for the current fiscal year.

Advanced Drainage Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 2nd were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 0.5%. The ex-dividend date was Monday, March 2nd. Advanced Drainage Systems's dividend payout ratio (DPR) is 11.98%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on WMS shares. Barclays decreased their price target on shares of Advanced Drainage Systems from $198.00 to $181.00 and set an "overweight" rating for the company in a research note on Wednesday, April 8th. Royal Bank Of Canada increased their price target on shares of Advanced Drainage Systems from $176.00 to $205.00 and gave the stock an "outperform" rating in a research note on Friday, February 6th. Oppenheimer increased their price target on shares of Advanced Drainage Systems from $180.00 to $200.00 and gave the stock an "outperform" rating in a research note on Monday, February 9th. KeyCorp raised their target price on shares of Advanced Drainage Systems from $180.00 to $198.00 and gave the stock an "overweight" rating in a research note on Friday, February 6th. Finally, UBS Group set a $215.00 target price on shares of Advanced Drainage Systems and gave the stock a "buy" rating in a research note on Friday, February 6th. Seven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $191.00.

Advanced Drainage Systems Profile

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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