Hsbc Holdings PLC Decreases Stake in Advanced Drainage Systems, Inc. $WMS

Key Points

• HSBC Holdings PLC cut its stake in Advanced Drainage Systems by 58.7% in the fourth quarter, leaving it with 22,956 shares worth about $3.33 million.
• Advanced Drainage Systems reported better-than-expected quarterly results, with EPS of $1.07 versus the $0.95 estimate and revenue of $676.76 million, up 9.9% year over year.
• The company raised its quarterly dividend to $0.20 per share from $0.18, while analysts still have a Moderate Buy consensus and an average price target of $185.75.

Hsbc Holdings PLC reduced its holdings in shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) by 58.7% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 22,956 shares of the construction company's stock after selling 32,590 shares during the quarter. Hsbc Holdings PLC's holdings in Advanced Drainage Systems were worth $3,325,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. raised its holdings 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 purchasing an additional 176 shares during the period. Caitong International Asset Management Co. Ltd bought a new stake in shares of Advanced Drainage Systems during the third quarter valued at about $36,000. Kestra Advisory Services LLC bought a new stake in Advanced Drainage Systems during the 4th quarter worth approximately $37,000. Clearstead Advisors LLC increased its holdings in shares of Advanced Drainage Systems by 150.8% in the fourth quarter. Clearstead Advisors LLC now owns 301 shares of the construction company's stock worth $44,000 after purchasing an additional 181 shares during the period. Finally, Los Angeles Capital Management LLC bought a new position in Advanced Drainage Systems in the 4th quarter worth about $42,000. Institutional investors own 89.83% of the company's stock.

Advanced Drainage Systems Stock Performance

Advanced Drainage Systems stock opened at $150.89 on Friday. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.35 and a current ratio of 2.42. Advanced Drainage Systems, Inc. has a fifty-two week low of $109.63 and a fifty-two week high of $179.32. The stock has a market cap of $11.56 billion, a price-to-earnings ratio of 27.74, a PEG ratio of 1.59 and a beta of 1.26. The stock's 50 day simple moving average is $141.67 and its two-hundred day simple moving average is $148.90.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The construction company reported $1.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.95 by $0.12. The business had revenue of $676.76 million during the quarter, compared to the consensus estimate of $651.92 million. Advanced Drainage Systems had a return on equity of 26.63% and a net margin of 13.98%.The firm's quarterly revenue was up 9.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.03 earnings per share. As a group, analysts expect that Advanced Drainage Systems, Inc. will post 6.55 earnings per share for the current fiscal year.

Advanced Drainage Systems Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Monday, June 1st. This is an increase from Advanced Drainage Systems's previous quarterly dividend of $0.18. Advanced Drainage Systems's dividend payout ratio (DPR) is currently 14.71%.

Analysts Set New Price Targets

WMS has been the topic of several research reports. KeyCorp restated an "overweight" rating on shares of Advanced Drainage Systems in a research report on Monday, June 22nd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Advanced Drainage Systems in a research note on Monday, April 20th. Royal Bank Of Canada boosted their price objective on shares of Advanced Drainage Systems from $168.00 to $170.00 and gave the company an "outperform" rating in a research report on Monday, June 8th. Zacks Research downgraded shares of Advanced Drainage Systems from a "hold" rating to a "strong sell" rating in a research note on Wednesday, June 17th. Finally, Stephens upgraded shares of Advanced Drainage Systems from an "equal weight" rating to an "overweight" rating and dropped their target price for the stock from $190.00 to $175.00 in a report on Wednesday, May 27th. Seven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $185.75.

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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