BlackRock Inc. Acquires New Shares in Advanced Drainage Systems, Inc. $WMS

Key Points

• BlackRock acquired 7.47 million shares of Advanced Drainage Systems in the second quarter, worth approximately $1.17 billion and representing a 9.75% stake. Institutional investors collectively own 89.83% of WMS.
• Advanced Drainage Systems exceeded quarterly expectations, reporting $2.49 in EPS versus the $2.10 consensus and $1 billion in revenue, up 20.6% year over year.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $188.38. The company also declared a quarterly dividend of $0.20 per share, implying a 0.6% yield.

BlackRock Inc. bought a new position in Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 7,469,940 shares of the construction company's stock, valued at approximately $1,172,482,000. BlackRock Inc. owned 9.75% of Advanced Drainage Systems as of its most recent SEC filing.

A number of other hedge funds have also added to or reduced their stakes in WMS. Deutsche Bank AG purchased a new stake in shares of Advanced Drainage Systems in the second quarter worth $16,294,000. Perigon Wealth Management LLC purchased a new position in Advanced Drainage Systems during the second quarter worth about $706,000. Trust Co. of Vermont purchased a new position in Advanced Drainage Systems during the second quarter worth about $218,000. Global Retirement Partners LLC bought a new position in Advanced Drainage Systems in the 2nd quarter worth about $237,000. Finally, Bank of New York Mellon Corp bought a new position in Advanced Drainage Systems in the 2nd quarter worth about $74,104,000. Hedge funds and other institutional investors own 89.83% of the company's stock.

Advanced Drainage Systems Price Performance

Shares of WMS stock opened at $143.91 on Friday. The business's fifty day moving average is $146.28 and its 200 day moving average is $147.31. The company has a quick ratio of 1.18, a current ratio of 2.12 and a debt-to-equity ratio of 0.95. The stock has a market cap of $10.85 billion, a price-to-earnings ratio of 24.85, a PEG ratio of 1.56 and a beta of 1.27. Advanced Drainage Systems, Inc. has a twelve month low of $128.03 and a twelve month 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 EPS for the quarter, beating analysts' consensus estimates of $2.10 by $0.39. The firm had revenue of $1 billion for the quarter, compared to analysts' expectations of $991.39 million. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The company's quarterly revenue was up 20.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.95 EPS. Research analysts expect that Advanced Drainage Systems, Inc. will post 6.62 EPS for the current fiscal year.

Advanced Drainage Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Tuesday, September 1st. Advanced Drainage Systems's dividend payout ratio (DPR) is presently 13.82%.

Analyst Upgrades and Downgrades

WMS has been the topic of a number of research analyst reports. Zacks Research raised shares of Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. Stephens upgraded Advanced Drainage Systems from an "equal weight" rating to an "overweight" rating and cut their price objective for the stock from $190.00 to $175.00 in a report on Wednesday, May 27th. Jefferies Financial Group assumed coverage on Advanced Drainage Systems in a research report on Thursday, June 11th. They set a "buy" rating and a $175.00 price objective on the stock. Oppenheimer cut their price objective on shares of Advanced Drainage Systems from $195.00 to $190.00 and set an "outperform" rating for the company in a research note on Tuesday, May 26th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Advanced Drainage Systems in a report on Friday, July 17th. Seven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $188.38.

Advanced Drainage Systems Company 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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