Advanced Drainage Systems (NYSE:WMS) Sets New 1-Year Low - Here's Why

Key Points

• Advanced Drainage Systems fell to a new 52-week low of $120.14, after previously closing at $144.07; shares were reported down 13.6%.
• Quarterly EPS of $1.88 beat analysts’ $1.81 estimate, but revenue of $889.41 million missed the $921.79 million consensus. Revenue rose 4.6% year over year.
• Analysts remain broadly positive, with eight Buy and two Hold ratings and a consensus price target of $187.40, giving the stock a “Moderate Buy” rating.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) shares hit a new 52-week low during trading on Thursday. The stock traded as low as $120.14 and last traded at $126.5690, with a volume of 124,784 shares. The stock had previously closed at $144.07.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on WMS. Robert W. Baird set a $206.00 target price on Advanced Drainage Systems in a report on Friday, August 7th. Royal Bank Of Canada cut their price target on Advanced Drainage Systems from $178.00 to $170.00 and set an "outperform" rating for the company in a research note on Wednesday, October 14th. Oppenheimer reduced their price target on shares of Advanced Drainage Systems from $190.00 to $185.00 and set an "outperform" rating for the company in a research report on Friday, October 9th. Barclays increased their price objective on shares of Advanced Drainage Systems from $181.00 to $191.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 14th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Advanced Drainage Systems in a report on Thursday, October 15th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $187.40.

Advanced Drainage Systems Trading Down 13.6%

The company has a market capitalization of $9.39 billion, a P/E ratio of 21.60, a PEG ratio of 1.56 and a beta of 1.30. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.18 and a current ratio of 2.12. The stock has a fifty day moving average of $130.70 and a 200 day moving average of $143.43.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The construction company reported $1.88 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.81 by $0.07. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The business had revenue of $889.41 million during the quarter, compared to analyst estimates of $921.79 million. During the same period last year, the firm posted $1.97 EPS. The company's revenue was up 4.6% on a year-over-year basis. As a group, equities research analysts anticipate that Advanced Drainage Systems, Inc. will post 6.57 EPS for the current fiscal year.

Institutional Investors Weigh In On Advanced Drainage Systems

A number of hedge funds have recently made changes to their positions in WMS. New York Life Investment Management LLC increased its position in shares of Advanced Drainage Systems by 12.8% during the 3rd quarter. New York Life Investment Management LLC now owns 9,612 shares of the construction company's stock valued at $1,218,000 after purchasing an additional 1,088 shares during the last quarter. Gen Wealth Partners Inc bought a new stake in Advanced Drainage Systems in the third quarter worth $29,000. M&G PLC lifted its position in Advanced Drainage Systems by 64.2% in the third quarter. M&G PLC now owns 10,420 shares of the construction company's stock worth $1,323,000 after buying an additional 4,075 shares during the last quarter. AlphaCore Capital LLC bought a new stake in Advanced Drainage Systems in the third quarter worth $877,000. Finally, Fulcrum Asset Management LLP purchased a new position in Advanced Drainage Systems during the third quarter worth $176,000. 89.83% of the stock is currently owned by hedge funds and other institutional investors.

Advanced Drainage Systems Company Profile

Advanced Drainage Systems, Inc NYSE: WMS is a manufacturer of water management products and solutions. The company produces thermoplastic corrugated pipe, fittings, drainage structures, stormwater chambers and related products used to manage the collection, conveyance, storage and treatment of water.

Its products serve a range of markets, including residential, commercial, agricultural, infrastructure and environmental applications. Advanced Drainage Systems supplies solutions for stormwater management, septic and wastewater systems, highway and road construction, land development, agriculture and erosion control.

Founded in 1966 and headquartered in Hilliard, Ohio, the company serves customers through a manufacturing and distribution network primarily covering the United States and Canada, with additional international operations.

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