Advanced Drainage Systems (NYSE:WMS) Hits New 12-Month Low After Analyst Downgrade

Key Points

• Advanced Drainage Systems shares fell to a new 52-week low of $122.84 after Royal Bank of Canada cut its price target from $178 to $170, despite maintaining an outperform rating.
• Analyst sentiment remains broadly positive, with eight Buy ratings and two Holds producing a “Moderate Buy” consensus and an average target price of $187.40.
• The company reported strong quarterly results, with earnings of $2.49 per share and revenue of $1 billion, up 20.6% year over year; institutional investors own approximately 89.8% of its shares.

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) hit a new 52-week low during trading on Wednesday after Royal Bank Of Canada lowered their price target on the stock from $178.00 to $170.00. Royal Bank Of Canada currently has an outperform rating on the stock. Advanced Drainage Systems traded as low as $122.84 and last traded at $124.0150, with a volume of 325,412 shares trading hands. The stock had previously closed at $126.73.

WMS has been the subject of several other research reports. KeyCorp reaffirmed an "overweight" rating on shares of Advanced Drainage Systems in a report on Monday, June 22nd. National Bank Financial set a $190.00 target price on shares of Advanced Drainage Systems in a research report on Monday, August 24th. Zacks Research raised shares of Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a research report on Monday, July 27th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Advanced Drainage Systems in a report on Friday, July 17th. Finally, UBS Group raised their target price on Advanced Drainage Systems from $205.00 to $207.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $187.40.

Hedge Funds Weigh In On Advanced Drainage Systems

Institutional investors and hedge funds have recently bought and sold shares of the business. Perpetual Ltd raised its holdings in shares of Advanced Drainage Systems by 1.5% in the third quarter. Perpetual Ltd now owns 108,050 shares of the construction company's stock valued at $13,691,000 after buying an additional 1,634 shares during the last quarter. Wedmont Private Capital grew its holdings in Advanced Drainage Systems by 25.1% during the 3rd quarter. Wedmont Private Capital now owns 1,898 shares of the construction company's stock worth $240,000 after acquiring an additional 381 shares during the last quarter. GAMMA Investing LLC increased its position in Advanced Drainage Systems by 13.2% in the 3rd quarter. GAMMA Investing LLC now owns 1,999 shares of the construction company's stock valued at $253,000 after acquiring an additional 233 shares in the last quarter. Valeo Financial Advisors LLC raised its stake in shares of Advanced Drainage Systems by 43.5% in the third quarter. Valeo Financial Advisors LLC now owns 3,834 shares of the construction company's stock worth $486,000 after acquiring an additional 1,162 shares during the last quarter. Finally, SkyView Investment Advisors LLC bought a new position in shares of Advanced Drainage Systems in the second quarter worth about $283,000. Institutional investors and hedge funds own 89.83% of the company's stock.

Advanced Drainage Systems Price Performance

The stock's 50-day moving average price is $134.67 and its 200-day moving average price is $140.23. The company has a market capitalization of $9.36 billion, a price-to-earnings ratio of 21.45, a price-to-earnings-growth ratio of 1.45 and a beta of 1.29. 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 (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, beating analysts' consensus estimates of $2.10 by $0.39. The business had revenue of $1 billion during the quarter, compared to analyst estimates of $991.39 million. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. Advanced Drainage Systems's revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.95 earnings per share. Equities research analysts anticipate that Advanced Drainage Systems, Inc. will post 6.57 earnings per share for the current year.

Advanced Drainage Systems Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Tuesday, September 1st. Advanced Drainage Systems's dividend payout ratio is 13.82%.

Advanced Drainage Systems Company Profile

Advanced Drainage Systems, Inc NYSE: WMS designs and manufactures water management solutions for infrastructure, construction, agriculture and residential applications. The company is best known for its thermoplastic corrugated pipe and related products used to manage stormwater, drainage and wastewater.

Its product portfolio includes stormwater detention and treatment systems, drainage pipe, septic wastewater systems, fittings, chambers, pumps and other water management components. Advanced Drainage Systems also provides products for agricultural drainage, commercial and residential construction, and large-scale infrastructure projects.

Founded in 1966 and headquartered in Hilliard, Ohio, the company serves customers primarily across North America through manufacturing facilities, distribution centers and a network of independent distributors.

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