Advanced Drainage Systems (NYSE:WMS) Hits New 12-Month Low - Time to Sell?

Key Points

• Advanced Drainage Systems fell to a new 52-week low of $124.39, trading about 3.5% lower, with its price below both the 50-day and 200-day moving averages.
• Despite the decline, analysts remain broadly positive: eight rate the stock a Buy and two a Hold, producing a “Moderate Buy” consensus and an average price target of $188.70.
• The company reported stronger-than-expected quarterly results, with EPS of $2.49 and revenue of $1 billion, while paying a quarterly dividend of $0.20; institutional investors own approximately 89.83% of shares.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday. The company traded as low as $124.39 and last traded at $125.1320, with a volume of 157580 shares trading hands. The stock had previously closed at $130.07.

Analyst Ratings Changes

Several analysts have recently issued reports on the company. Stephens reaffirmed an "overweight" rating and set a $175.00 price objective on shares of Advanced Drainage Systems in a report on Monday, September 21st. KeyCorp restated an "overweight" rating on shares of Advanced Drainage Systems in a research report on Monday, June 22nd. Jefferies Financial Group assumed coverage on Advanced Drainage Systems in a research report on Thursday, June 11th. They issued a "buy" rating and a $175.00 price target for the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Advanced Drainage Systems in a research report on Friday, July 17th. Finally, UBS Group raised their target price on shares of Advanced Drainage Systems from $205.00 to $207.00 and gave the stock a "buy" rating in a 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's stock. According to 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 Trading Down 3.5%

The company has a debt-to-equity ratio of 0.95, a current ratio of 2.12 and a quick ratio of 1.18. The stock's 50-day moving average price is $136.24 and its 200 day moving average price is $140.57. The firm has a market capitalization of $9.46 billion, a PE ratio of 21.68, a price-to-earnings-growth ratio of 1.42 and a beta of 1.29.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The construction company reported $2.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.10 by $0.39. The company had revenue of $1 billion for 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 was up 20.6% compared to the same quarter last year. During the same period last year, the company posted $1.95 earnings per share. On average, sell-side analysts expect that Advanced Drainage Systems, Inc. will post 6.62 EPS for the current fiscal year.

Advanced Drainage Systems Announces Dividend

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

Hedge Funds Weigh In On Advanced Drainage Systems

A number of institutional investors have recently bought and sold shares of the business. SJS Investment Consulting Inc. boosted its holdings in Advanced Drainage Systems by 78.1% during the 1st quarter. SJS Investment Consulting Inc. now owns 244 shares of the construction company's stock valued at $33,000 after acquiring an additional 107 shares during the period. Fifth Third Wealth Advisors LLC grew its holdings in shares of Advanced Drainage Systems by 7.7% in the first quarter. Fifth Third Wealth Advisors LLC now owns 1,800 shares of the construction company's stock valued at $247,000 after purchasing an additional 128 shares in the last quarter. Praxis Investment Management Inc. increased its stake in Advanced Drainage Systems by 7.0% during the 1st quarter. Praxis Investment Management Inc. now owns 2,130 shares of the construction company's stock worth $292,000 after buying an additional 140 shares during the period. Parallel Advisors LLC increased its stake in Advanced Drainage Systems by 18.0% during the 1st quarter. Parallel Advisors LLC now owns 1,027 shares of the construction company's stock worth $141,000 after buying an additional 157 shares during the period. Finally, Bessemer Group Inc. lifted its holdings in Advanced Drainage Systems by 70.3% during the 1st quarter. Bessemer Group Inc. now owns 395 shares of the construction company's stock worth $54,000 after buying an additional 163 shares in the last quarter. 89.83% of the stock is owned by hedge funds and other institutional investors.

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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