Advanced Drainage Systems (NYSE:WMS) Reaches New 52-Week Low - What's Next?

Key Points

• Advanced Drainage Systems shares hit a new 52-week low, trading as low as $124.61, well below their 50-day and 200-day moving averages.
• Despite the decline, analysts remain broadly positive, assigning the stock a consensus “Moderate Buy” rating and an average price target of $188.70.
• The company reported strong quarterly results, with EPS of $2.49 beating estimates and revenue rising 20.6% year over year to approximately $1 billion; it also pays a quarterly dividend of $0.20.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) shares reached a new 52-week low during trading on Thursday. The stock traded as low as $124.61 and last traded at $124.9330, with a volume of 35877 shares trading hands. The stock had previously closed at $126.71.

Wall Street Analysts Forecast Growth

WMS has been the topic of several recent analyst reports. KeyCorp reiterated an "overweight" rating on shares of Advanced Drainage Systems in a report on Monday, June 22nd. Barclays boosted their target price on shares of Advanced Drainage Systems from $181.00 to $191.00 and gave the company an "overweight" rating in a report on Tuesday, July 14th. National Bank Financial set a $190.00 price target on shares of Advanced Drainage Systems in a research report on Monday, August 24th. Stephens reaffirmed an "overweight" rating and set a $175.00 price target on shares of Advanced Drainage Systems in a research note on Monday, September 21st. Finally, Royal Bank Of Canada lifted their price target on shares of Advanced Drainage Systems from $170.00 to $178.00 and gave the company an "outperform" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $188.70.

Advanced Drainage Systems Price Performance

The stock has a market cap of $9.58 billion, a PE ratio of 21.95, a price-to-earnings-growth ratio of 1.41 and a beta of 1.28. 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 company's fifty day moving average is $137.39 and its 200 day moving average is $140.85.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The construction company reported $2.49 earnings per share (EPS) for the quarter, topping 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 company had revenue of $1 billion during the quarter, compared to the consensus estimate of $991.39 million. During the same period in the previous year, the firm earned $1.95 earnings per share. Advanced Drainage Systems's revenue for the quarter was up 20.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Advanced Drainage Systems, Inc. will post 6.62 earnings per share for the current fiscal year.

Advanced Drainage Systems Announces Dividend

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

Hedge Funds Weigh In On Advanced Drainage Systems

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Allworth Financial LP purchased a new stake in shares of Advanced Drainage Systems during the second quarter valued at approximately $26,000. SJS Investment Consulting Inc. lifted its position in shares of Advanced Drainage Systems by 78.1% during 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. Avalon Trust Co purchased a new position in shares of Advanced Drainage Systems in the second quarter valued at $42,000. Clearstead Advisors LLC grew its holdings in Advanced Drainage Systems by 150.8% during the 4th quarter. Clearstead Advisors LLC now owns 301 shares of the construction company's stock valued at $44,000 after purchasing an additional 181 shares in the last quarter. Finally, Vega Investment Solutions acquired a new stake in Advanced Drainage Systems during the 2nd quarter valued at $50,000. 89.83% of the stock is owned by institutional investors and hedge funds.

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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