Advanced Drainage Systems, Inc. $WMS Shares Sold by Swedbank AB

Key Points

• Advanced Drainage Systems beat fourth-quarter expectations, reporting EPS of $1.07 versus $0.98 expected and revenue of $676.8 million versus $651.9 million expected. Revenue also increased 9.9% year over year.
• The company raised its quarterly dividend by 11% to $0.20 per share, signaling confidence in cash flow and shareholder returns. The new payout will be paid on June 15 to shareholders of record on June 1.
• Management provided upbeat long-term guidance, calling for FY2027 revenue of about $3.35 billion to $3.55 billion and adjusted EBITDA of $1.0 billion to $1.5 billion. Meanwhile, institutional investors remain heavily involved, owning about 89.83% of the stock.

Swedbank AB lessened its position in shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) by 41.6% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 210,800 shares of the construction company's stock after selling 150,430 shares during the quarter. Swedbank AB owned approximately 0.27% of Advanced Drainage Systems worth $30,530,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in WMS. Wellington Management Group LLP raised its stake in shares of Advanced Drainage Systems by 234.0% during the 3rd quarter. Wellington Management Group LLP now owns 1,188,906 shares of the construction company's stock worth $164,901,000 after buying an additional 832,929 shares during the last quarter. Interval Partners LP increased its position in Advanced Drainage Systems by 98.0% during the 3rd quarter. Interval Partners LP now owns 968,534 shares of the construction company's stock worth $134,336,000 after purchasing an additional 479,413 shares in the last quarter. SG Capital Management LLC purchased a new stake in Advanced Drainage Systems during the 3rd quarter worth about $45,591,000. Franklin Resources Inc. increased its position in Advanced Drainage Systems by 586.9% during the 3rd quarter. Franklin Resources Inc. now owns 285,810 shares of the construction company's stock worth $39,642,000 after purchasing an additional 244,202 shares in the last quarter. Finally, Capital International Investors increased its position in Advanced Drainage Systems by 34.9% during the 3rd quarter. Capital International Investors now owns 933,851 shares of the construction company's stock worth $129,525,000 after purchasing an additional 241,500 shares in the last quarter. Institutional investors and hedge funds own 89.83% of the company's stock.

Advanced Drainage Systems News Summary

Here are the key news stories impacting Advanced Drainage Systems this week:

• Positive Sentiment: WMS beat fourth-quarter expectations with EPS of $1.07 versus $0.98 expected, and revenue of $676.8 million topped estimates of $651.9 million. Revenue rose 9.9% year over year, showing continued operating momentum. Advanced Drainage Systems earnings report
• Positive Sentiment: The company raised its quarterly dividend to $0.20 per share, an 11% increase, signaling confidence in cash flow and shareholder returns. Dividend increase announcement
• Positive Sentiment: Management outlined FY2027 revenue guidance of roughly $3.35 billion to $3.55 billion and adjusted EBITDA of $1.0 billion to $1.5 billion, which suggests continued growth after the NDS integration. FY2027 outlook article
• Neutral Sentiment: Analysts and commentators noted that the shares may be looking more attractive on valuation after the post-earnings pullback, but this is more of a potential setup than an immediate catalyst. Valuation after earnings beat
• Negative Sentiment: Despite the beat, coverage highlighted a cautious demand outlook, which appears to be limiting investor enthusiasm and contributing to the stock's decline. Cautious demand outlook article

Analyst Upgrades and Downgrades

A number of research firms recently commented on WMS. KeyCorp dropped their price objective on Advanced Drainage Systems from $198.00 to $185.00 and set an "overweight" rating for the company in a research report on Friday. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $168.00 price objective on shares of Advanced Drainage Systems in a research note on Friday. Oppenheimer reaffirmed an "outperform" rating and issued a $195.00 price objective (down from $200.00) on shares of Advanced Drainage Systems in a research note on Friday, April 17th. Barclays reduced their price target on Advanced Drainage Systems from $198.00 to $181.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 8th. Finally, UBS Group reduced their price target on Advanced Drainage Systems from $215.00 to $205.00 and set a "buy" rating on the stock in a research report on Friday. Five investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Advanced Drainage Systems currently has a consensus rating of "Moderate Buy" and an average price target of $189.83.

Advanced Drainage Systems Stock Performance

Advanced Drainage Systems stock opened at $132.97 on Monday. The stock's 50 day moving average price is $142.21 and its 200 day moving average price is $150.15. The firm has a market capitalization of $10.36 billion, a PE ratio of 24.44, a price-to-earnings-growth ratio of 1.39 and a beta of 1.33. The company has a debt-to-equity ratio of 0.92, a quick ratio of 3.08 and a current ratio of 2.42. Advanced Drainage Systems, Inc. has a one year low of $105.14 and a one year high of $179.32.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The construction company reported $1.07 EPS for the quarter, topping the consensus estimate of $0.95 by $0.12. The firm had revenue of $676.76 million for the quarter, compared to analyst estimates of $651.92 million. Advanced Drainage Systems had a return on equity of 26.63% and a net margin of 13.98%.Advanced Drainage Systems's revenue for the quarter was up 9.9% on a year-over-year basis. During the same period in the previous year, the company posted $1.03 EPS. As a group, sell-side analysts expect that Advanced Drainage Systems, Inc. will post 6.86 EPS for the current fiscal year.

Advanced Drainage Systems Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be given a dividend of $0.20 per share. This is a boost from Advanced Drainage Systems's previous quarterly dividend of $0.18. The ex-dividend date of this dividend is Monday, June 1st. This represents a $0.80 annualized dividend and a yield of 0.6%. Advanced Drainage Systems's dividend payout ratio is presently 13.24%.

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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