Hsbc Holdings PLC Acquires New Shares in Advanced Drainage Systems, Inc. $WMS

Key Points

• HSBC Holdings acquired 21,481 shares of Advanced Drainage Systems, valued at approximately $3.37 million, while institutional investors collectively own 89.83% of the company.
• Advanced Drainage Systems reported quarterly EPS of $2.49, exceeding estimates of $2.10, while revenue rose 20.6% year over year to $1 billion.
• The company declared a quarterly dividend of $0.20 per share, and analysts maintain a “Moderate Buy” consensus rating with an average price target of $188.70 versus the reported share price of $137.11.

Hsbc Holdings PLC acquired a new position in Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm acquired 21,481 shares of the construction company's stock, valued at approximately $3,372,000.

Other hedge funds have also bought and sold shares of the company. Allworth Financial LP bought a new position in Advanced Drainage Systems during the 2nd quarter valued at about $26,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Advanced Drainage Systems by 352.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 226 shares of the construction company's stock valued at $26,000 after purchasing an additional 176 shares during the last quarter. SJS Investment Consulting Inc. raised its holdings in shares of Advanced Drainage Systems by 78.1% during 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 last quarter. Caitong International Asset Management Co. Ltd bought a new position in Advanced Drainage Systems during the third quarter valued at approximately $36,000. Finally, Kestra Advisory Services LLC bought a new position in Advanced Drainage Systems during the fourth quarter valued at approximately $37,000. Hedge funds and other institutional investors own 89.83% of the company's stock.

Advanced Drainage Systems Stock Down 1.2%

Shares of WMS stock opened at $137.11 on Friday. Advanced Drainage Systems, Inc. has a 12 month low of $128.03 and a 12 month high of $179.32. The stock has a market cap of $10.34 billion, a P/E ratio of 23.68, a P/E/G ratio of 1.50 and a beta of 1.27. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95. The company has a 50 day simple moving average of $145.99 and a two-hundred day simple moving average of $146.47.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The construction company reported $2.49 earnings per share for the quarter, topping 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 for the quarter, compared to analysts' expectations of $991.39 million. During the same quarter last year, the company posted $1.95 EPS. The company's revenue was up 20.6% compared to the same quarter last year. On average, research analysts expect that Advanced Drainage Systems, Inc. will post 6.62 earnings per share for the current year.

Advanced Drainage Systems Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. National Bank Financial set a $190.00 target price on shares of Advanced Drainage Systems in a research report on Monday, August 24th. Robert W. Baird set a $206.00 price target on Advanced Drainage Systems in a report on Friday, August 7th. UBS Group raised their price target on Advanced Drainage Systems from $205.00 to $207.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Barclays lifted their price objective on Advanced Drainage Systems from $181.00 to $191.00 and gave the stock an "overweight" rating in a report on Tuesday, July 14th. Finally, DA Davidson started coverage on Advanced Drainage Systems in a research report on Tuesday, August 25th. They set a "buy" rating and a $190.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $188.70.

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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