Advanced Drainage Systems (NYSE:WMS) Hits New 52-Week Low - Here's Why

Key Points

• Advanced Drainage Systems shares hit a new 52-week low, falling to $127.50 compared with the prior close of $131.78; the stock remains below its 50-day and 200-day moving averages.
• Despite the sell-off, analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $188.70, though several firms recently lowered their targets.
• The company reported stronger-than-expected quarterly results, with earnings of $2.49 per share and revenue of $1 billion, while revenue rose 20.6% year over year; it also declared a $0.20 quarterly dividend.

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) hit a new 52-week low on Thursday . The company traded as low as $127.50 and last traded at $127.6450, with a volume of 333491 shares. The stock had previously closed at $131.78.

Wall Street Analyst Weigh In

WMS has been the topic of a number of recent analyst reports. Stephens raised shares of Advanced Drainage Systems from an "equal weight" rating to an "overweight" rating and lowered their price target for the stock from $190.00 to $175.00 in a research note on Wednesday, May 27th. Zacks Research raised shares of Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. Robert W. Baird set a $206.00 price target on shares of Advanced Drainage Systems in a research report on Friday, August 7th. KeyCorp restated an "overweight" rating on shares of Advanced Drainage Systems in a report on Monday, June 22nd. Finally, Oppenheimer reduced their price target on shares of Advanced Drainage Systems from $195.00 to $190.00 and set an "outperform" rating on the stock in a report on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $188.70.

Advanced Drainage Systems Stock Performance

The stock's 50 day moving average price is $143.37 and its 200 day moving average price is $144.19. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95. The company has a market cap of $9.61 billion, a price-to-earnings ratio of 22.03, a P/E/G ratio of 1.46 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 earnings per share for the quarter, topping analysts' consensus estimates of $2.10 by $0.39. The company had revenue of $1 billion for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same quarter last year, the firm posted $1.95 earnings per share. On average, analysts expect that Advanced Drainage Systems, Inc. will post 6.62 EPS for the current fiscal year.

Advanced Drainage Systems Dividend Announcement

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System boosted its holdings in Advanced Drainage Systems by 15,172.0% in the 2nd quarter. California State Teachers Retirement System now owns 13,246,953 shares of the construction company's stock worth $2,079,242,000 after acquiring an additional 13,160,213 shares during the period. BlackRock Inc. purchased a new stake in Advanced Drainage Systems during the 2nd quarter worth $1,172,482,000. Norges Bank purchased a new position in Advanced Drainage Systems in the 4th quarter valued at about $156,587,000. Wellington Management Group LLP increased its position in shares of Advanced Drainage Systems by 234.0% during the third quarter. Wellington Management Group LLP now owns 1,188,906 shares of the construction company's stock worth $164,901,000 after acquiring an additional 832,929 shares during the last quarter. Finally, Bamco Inc. NY acquired a new position in shares of Advanced Drainage Systems in the second quarter worth about $106,800,000. 89.83% of the stock is owned by institutional investors and hedge funds.

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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