Hsbc Holdings PLC Sells 15,612 Shares of Advanced Drainage Systems, Inc. $WMS

Key Points

• Hsbc Holdings reduced its Advanced Drainage Systems stake by 42.1% in the second quarter, selling 15,612 shares and retaining 21,481 shares worth approximately $3.37 million.
• Analysts remain broadly optimistic, with a “Moderate Buy” consensus and an average price target of $188.70, despite the stock opening at $127.05 and trading near its 52-week low.
• Advanced Drainage Systems reported a strong quarter, with EPS of $2.49 beating estimates by $0.39 and revenue rising 20.6% year over year to $1 billion; it also declared a quarterly dividend of $0.20 per share.

Hsbc Holdings PLC lessened its position in shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) by 42.1% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 21,481 shares of the construction company's stock after selling 15,612 shares during the quarter. Hsbc Holdings PLC's holdings in Advanced Drainage Systems were worth $3,372,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the business. Allworth Financial LP purchased a new position in Advanced Drainage Systems during the second quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Advanced Drainage Systems by 352.0% in the second 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 in the last quarter. SJS Investment Consulting Inc. increased its stake 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 worth $33,000 after purchasing an additional 107 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Advanced Drainage Systems during the 3rd quarter valued at $36,000. Finally, Kestra Advisory Services LLC purchased a new position in shares of Advanced Drainage Systems during the 4th quarter valued at $37,000. 89.83% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on WMS. UBS Group boosted their price target on Advanced Drainage Systems from $205.00 to $207.00 and gave the stock a "buy" rating in a report on Friday, August 7th. Jefferies Financial Group assumed coverage on shares of 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. Robert W. Baird set a $206.00 target price on shares of Advanced Drainage Systems in a report on Friday, August 7th. 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 research report on Wednesday, May 27th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Advanced Drainage Systems in a research note on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $188.70.

Advanced Drainage Systems Stock Performance

Shares of Advanced Drainage Systems stock opened at $127.05 on Friday. 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's fifty day moving average is $142.87 and its two-hundred day moving average is $143.88. Advanced Drainage Systems, Inc. has a 52 week low of $126.39 and a 52 week high of $179.32. The company has a market capitalization of $9.58 billion, a PE ratio of 21.94, a price-to-earnings-growth ratio of 1.44 and a beta of 1.28.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The construction company reported $2.49 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 quarter in the previous year, the business posted $1.95 EPS. The company's quarterly revenue was up 20.6% compared to the same quarter last year. As a group, analysts expect 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 declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.80 dividend on an annualized basis and a yield of 0.6%. Advanced Drainage Systems's payout ratio is currently 13.82%.

Advanced Drainage Systems Company Profile

Advanced Drainage Systems, Inc NYSE: WMS designs and manufactures water management products for the construction, infrastructure, agriculture and residential markets. Founded in 1966 and headquartered in Hilliard, Ohio, the company is known for its thermoplastic corrugated pipe and related systems used to collect, convey, store and manage stormwater and wastewater.

Its product portfolio includes stormwater detention and infiltration systems, sanitary and septic sewer products, agricultural drainage systems, erosion and sediment control products, and water-quality solutions.

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