Hill City Capital LP Acquires Shares of 480,000 Advanced Drainage Systems, Inc. $WMS

Key Points

• Hill City Capital LP acquired 480,000 shares of Advanced Drainage Systems, valued at approximately $75.3 million, giving it a 0.64% stake. Institutional investors and hedge funds collectively own 89.83% of the company.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $188.70, well above its reported price of $137.11.
• Advanced Drainage Systems exceeded quarterly expectations, reporting $2.49 in EPS and roughly $1 billion in revenue, with revenue up 20.6% year over year. The company also announced a quarterly dividend of $0.20 per share, representing a 0.6% yield.

Hill City Capital LP bought a new position in shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 480,000 shares of the construction company's stock, valued at approximately $75,340,800. Advanced Drainage Systems accounts for about 0.0% of Hill City Capital LP's holdings, making the stock its 14th largest holding. Hill City Capital LP owned approximately 0.64% of Advanced Drainage Systems at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in the company. Allworth Financial LP acquired a new position in Advanced Drainage Systems in the 2nd quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. raised its position in Advanced Drainage Systems by 352.0% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 226 shares of the construction company's stock worth $26,000 after purchasing an additional 176 shares during the last quarter. SJS Investment Consulting Inc. raised its position in Advanced Drainage Systems by 78.1% in the 1st quarter. SJS Investment Consulting Inc. now owns 244 shares of the construction company's stock valued at $33,000 after buying an additional 107 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new position in shares of Advanced Drainage Systems in the third quarter worth $36,000. Finally, Kestra Advisory Services LLC bought a new stake in Advanced Drainage Systems in the fourth quarter valued at $37,000. 89.83% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on WMS shares. National Bank Financial set a $190.00 price objective on shares of Advanced Drainage Systems in a research report on Monday. Oppenheimer reduced their target price 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. UBS Group raised their price target on shares of Advanced Drainage Systems from $205.00 to $207.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Weiss Ratings reissued a "hold (c)" rating on shares of Advanced Drainage Systems in a research report on Friday, July 17th. Finally, Royal Bank Of Canada raised their price objective on Advanced Drainage Systems from $170.00 to $178.00 and gave the company an "outperform" rating in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $188.70.

Advanced Drainage Systems Trading Down 1.2%

Shares of WMS traded down $1.70 on Friday, hitting $137.11. 596,108 shares of the stock traded hands, compared to its average volume of 834,219. The company has a quick ratio of 1.18, a current ratio of 2.12 and a debt-to-equity ratio of 0.95. Advanced Drainage Systems, Inc. has a 1 year low of $128.03 and a 1 year high of $179.32. The stock's 50 day moving average is $146.19 and its two-hundred day moving average is $146.54. The firm has a market capitalization of $10.34 billion, a P/E ratio of 23.68, a P/E/G ratio of 1.55 and a beta of 1.27.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The construction company reported $2.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.10 by $0.39. Advanced Drainage Systems had a return on equity of 28.28% and a net margin of 14.00%.The business had revenue of $1 billion during the quarter, compared to analyst estimates of $991.39 million. During the same period last year, the company earned $1.95 earnings per share. Advanced Drainage Systems's quarterly revenue was up 20.6% compared to the same quarter last year. As a group, sell-side analysts predict that Advanced Drainage Systems, Inc. will post 6.62 earnings per share for the current year.

Advanced Drainage Systems Dividend Announcement

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

About Advanced Drainage Systems

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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