Westwood Holdings Group Inc. Makes New Investment in Advanced Drainage Systems, Inc. (NYSE:WMS)

Key Points

• Westwood Holdings Group Inc. acquired 181,435 shares of Advanced Drainage Systems, Inc. (NYSE:WMS) valued at approximately $19.7 million, representing a 0.23% stake in the company.
• Advanced Drainage Systems recently declared a quarterly dividend of $0.18 per share, an increase from the previous $0.16, showcasing a dividend yield of 0.6%.
• Wall Street analysts have varied opinions on the stock, with ratings ranging from sell to buy, and an average target price of $139.88, indicating a general sentiment of Moderate Buy.

Westwood Holdings Group Inc. purchased a new stake in shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 181,435 shares of the construction company's stock, valued at approximately $19,713,000. Westwood Holdings Group Inc. owned approximately 0.23% of Advanced Drainage Systems at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the company. US Bancorp DE raised its position in Advanced Drainage Systems by 5.7% during the first quarter. US Bancorp DE now owns 2,017 shares of the construction company's stock valued at $219,000 after purchasing an additional 109 shares during the period. Bessemer Group Inc. boosted its holdings in shares of Advanced Drainage Systems by 76.2% in the 1st quarter. Bessemer Group Inc. now owns 266 shares of the construction company's stock worth $29,000 after purchasing an additional 115 shares during the period. Phoenix Financial Ltd. increased its position in shares of Advanced Drainage Systems by 5.2% during the 1st quarter. Phoenix Financial Ltd. now owns 2,463 shares of the construction company's stock valued at $269,000 after purchasing an additional 121 shares during the last quarter. Isthmus Partners LLC raised its holdings in Advanced Drainage Systems by 5.5% during the 1st quarter. Isthmus Partners LLC now owns 2,875 shares of the construction company's stock valued at $312,000 after buying an additional 150 shares during the period. Finally, Applied Finance Capital Management LLC lifted its position in Advanced Drainage Systems by 8.7% in the first quarter. Applied Finance Capital Management LLC now owns 1,896 shares of the construction company's stock worth $206,000 after buying an additional 152 shares during the last quarter. Hedge funds and other institutional investors own 89.83% of the company's stock.

Advanced Drainage Systems Trading Up 17.1%

WMS stock traded up $19.49 during mid-day trading on Thursday, reaching $133.40. The company had a trading volume of 2,589,177 shares, compared to its average volume of 626,856. The company has a market capitalization of $10.36 billion, a PE ratio of 23.16, a price-to-earnings-growth ratio of 1.65 and a beta of 1.27. The firm has a 50 day moving average of $115.95 and a 200 day moving average of $114.40. Advanced Drainage Systems, Inc. has a 12 month low of $93.92 and a 12 month high of $166.03. The company has a debt-to-equity ratio of 0.90, a current ratio of 3.33 and a quick ratio of 2.10.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last issued its earnings results on Thursday, August 7th. The construction company reported $1.95 earnings per share for the quarter, beating analysts' consensus estimates of $1.78 by $0.17. Advanced Drainage Systems had a return on equity of 32.33% and a net margin of 15.50%. The business had revenue of $829.88 million during the quarter, compared to analyst estimates of $800.54 million. During the same period in the previous year, the company posted $2.06 EPS. Advanced Drainage Systems's revenue was up 1.8% on a year-over-year basis. On average, equities analysts predict that Advanced Drainage Systems, Inc. will post 6.1 earnings per share for the current fiscal year.

Advanced Drainage Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 29th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 0.5%. Advanced Drainage Systems's payout ratio is 12.50%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on WMS shares. Robert W. Baird cut their price objective on shares of Advanced Drainage Systems from $146.00 to $141.00 and set an "outperform" rating on the stock in a research report on Friday, May 16th. Loop Capital dropped their price target on shares of Advanced Drainage Systems from $143.00 to $133.00 and set a "buy" rating for the company in a research note on Friday, May 16th. Oppenheimer reduced their price objective on shares of Advanced Drainage Systems from $165.00 to $160.00 and set an "outperform" rating on the stock in a research report on Friday, May 16th. Barclays boosted their target price on Advanced Drainage Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a research report on Friday, May 16th. Finally, Wall Street Zen cut Advanced Drainage Systems from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th. One analyst has rated the stock with a sell rating, one has given a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $139.88.

Advanced Drainage Systems Company Profile

Advanced Drainage Systems, Inc designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators.