Bell Asset Management Ltd Lowers Stake in Advanced Drainage Systems, Inc. $WMS

Key Points

• Bell Asset Management reduced its Advanced Drainage Systems stake by 32.9% in the third quarter, selling 9,743 shares and retaining 19,871 shares valued at approximately $2.52 million. Institutional investors collectively own 89.83% of the company.
• Analysts maintain a generally positive outlook, with eight Buy ratings and two Hold ratings producing a “Moderate Buy” consensus and an average price target of $188.70.
• Advanced Drainage Systems reported strong quarterly results, with EPS of $2.49 beating estimates by $0.39 and revenue rising 20.6% year over year to about $1 billion. The company also pays a quarterly dividend of $0.20 per share, equivalent to a 0.6% annual yield.

Bell Asset Management Ltd lessened its position in shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) by 32.9% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 19,871 shares of the construction company's stock after selling 9,743 shares during the period. Bell Asset Management Ltd's holdings in Advanced Drainage Systems were worth $2,518,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Allworth Financial LP bought a new position in Advanced Drainage Systems during the second quarter worth about $26,000. SJS Investment Consulting Inc. raised its position in shares of Advanced Drainage Systems by 78.1% in the first quarter. SJS Investment Consulting Inc. now owns 244 shares of the construction company's stock valued at $33,000 after purchasing an additional 107 shares during the period. Avalon Trust Co bought a new stake in shares of Advanced Drainage Systems in the second quarter valued at approximately $42,000. Vega Investment Solutions purchased a new stake in shares of Advanced Drainage Systems during the 2nd quarter valued at approximately $50,000. Finally, Bessemer Group Inc. lifted its stake in shares of Advanced Drainage Systems by 70.3% during the 1st quarter. Bessemer Group Inc. now owns 395 shares of the construction company's stock valued at $54,000 after buying an additional 163 shares in the last quarter. Institutional investors own 89.83% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of Advanced Drainage Systems in a research note on Friday, July 17th. National Bank Financial set a $190.00 target price on Advanced Drainage Systems in a research report on Monday, August 24th. Stephens reaffirmed an "overweight" rating and issued a $175.00 price target on shares of Advanced Drainage Systems in a report on Monday, September 21st. KeyCorp reiterated an "overweight" rating on shares of Advanced Drainage Systems in a research report on Monday, June 22nd. Finally, Barclays boosted their price objective on Advanced Drainage Systems from $181.00 to $191.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. Eight investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $188.70.

Advanced Drainage Systems Stock Up 0.0%

WMS stock opened at $126.13 on Friday. The company's 50 day moving average is $135.76 and its 200 day moving average is $140.47. The stock has a market cap of $9.51 billion, a price-to-earnings ratio of 21.78, a price-to-earnings-growth ratio of 1.38 and a beta of 1.29. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95. Advanced Drainage Systems, Inc. has a 1-year low of $122.90 and a 1-year high of $179.32.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last announced its earnings results on Thursday, August 6th. The construction company reported $2.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.10 by $0.39. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The business had revenue of $1 billion during the quarter, compared to analyst estimates of $991.39 million. During the same period in the previous year, the business posted $1.95 earnings per share. Advanced Drainage Systems's revenue for the quarter was up 20.6% on a year-over-year basis. Sell-side analysts predict that Advanced Drainage Systems, Inc. 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. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Tuesday, September 1st. Advanced Drainage Systems's payout ratio is currently 13.82%.

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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