Advanced Drainage Systems, Inc. $WMS Stock Position Lowered by William Blair Investment Management LLC

Key Points

• William Blair Investment Management cut its stake in Advanced Drainage Systems by 16.1% in the fourth quarter, though it still held 688,047 shares worth about $99.7 million.
• The company beat fourth-quarter expectations, posting EPS of $1.07 on revenue of $676.8 million, with sales up 9.9% year over year.
• Advanced Drainage Systems raised its quarterly dividend to $0.20 per share, an 11% increase, while management also outlined FY2027 revenue of roughly $3.35 billion to $3.55 billion.

William Blair Investment Management LLC lessened its position in Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) by 16.1% during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 688,047 shares of the construction company's stock after selling 132,156 shares during the period. William Blair Investment Management LLC owned approximately 0.88% of Advanced Drainage Systems worth $99,650,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. raised its stake in shares of Advanced Drainage Systems by 352.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 226 shares of the construction company's stock worth $26,000 after buying an additional 176 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC bought a new stake in shares of Advanced Drainage Systems in the 3rd quarter worth $33,000. Cullen Frost Bankers Inc. raised its stake in shares of Advanced Drainage Systems by 1,242.1% in the 3rd quarter. Cullen Frost Bankers Inc. now owns 255 shares of the construction company's stock worth $35,000 after buying an additional 236 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Advanced Drainage Systems in the 3rd quarter worth $36,000. Finally, Larson Financial Group LLC grew its holdings in shares of Advanced Drainage Systems by 24.4% in the 4th quarter. Larson Financial Group LLC now owns 377 shares of the construction company's stock worth $55,000 after acquiring an additional 74 shares during the last quarter. Institutional investors own 89.83% of the company's stock.

Trending Headlines about Advanced Drainage Systems

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

Advanced Drainage Systems Stock Performance

Shares of WMS stock opened at $132.97 on Friday. Advanced Drainage Systems, Inc. has a 1-year low of $105.14 and a 1-year high of $179.32. The company has a current ratio of 2.42, a quick ratio of 3.08 and a debt-to-equity ratio of 0.92. The company has a market capitalization of $10.36 billion, a price-to-earnings ratio of 24.44, a P/E/G ratio of 1.39 and a beta of 1.33. The stock's fifty day simple moving average is $142.21 and its 200-day simple moving average is $150.06.

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

Advanced Drainage Systems Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 0.6%. This is an increase from Advanced Drainage Systems's previous quarterly dividend of $0.18. The ex-dividend date is Monday, June 1st. Advanced Drainage Systems's dividend payout ratio is presently 13.24%.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on WMS. Robert W. Baird set a $205.00 target price on Advanced Drainage Systems in a report on Friday, February 6th. Barclays decreased their target price on Advanced Drainage Systems from $198.00 to $181.00 and set an "overweight" rating on the stock in a report on Wednesday, April 8th. Weiss Ratings restated a "hold (c)" rating on shares of Advanced Drainage Systems in a report on Monday, April 20th. UBS Group decreased their target price on Advanced Drainage Systems from $215.00 to $205.00 and set a "buy" rating on the stock in a report on Friday. Finally, Oppenheimer restated an "outperform" rating and issued a $195.00 target price (down from $200.00) on shares of Advanced Drainage Systems in a report on Friday, April 17th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $189.83.

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.

Want to see what other hedge funds are holding WMS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.