Advanced Drainage Systems (NYSE:WMS) Share Price Crosses Above Fifty Day Moving Average - Here's Why

Key Points

• Advanced Drainage Systems shares rose above their 50-day moving average, reaching $136.85 and last trading at $136.76, up 5.1%.
• Analysts remain broadly optimistic, with eight Buy ratings and two Holds; the stock has a “Moderate Buy” consensus and an average price target of $187.40.
• The company reported strong quarterly results, with EPS of $2.49 beating estimates by $0.39 and revenue increasing 20.6% year over year to $1 billion. It also declared a quarterly dividend of $0.20 per share.

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report) crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $130.97 and traded as high as $136.85. Advanced Drainage Systems shares last traded at $136.76, with a volume of 610,076 shares traded.

Analysts Set New Price Targets

Several brokerages have issued reports on WMS. Barclays upped their price objective on Advanced Drainage Systems from $181.00 to $191.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. Royal Bank Of Canada reduced their price target on shares of Advanced Drainage Systems from $178.00 to $170.00 and set an "outperform" rating on the stock in a research report on Wednesday, October 14th. National Bank Financial set a $190.00 price objective on shares of Advanced Drainage Systems in a research report on Monday, August 24th. DA Davidson reiterated a "buy" rating and set a $190.00 price objective on shares of Advanced Drainage Systems in a research note on Tuesday, October 6th. Finally, Robert W. Baird set a $206.00 target price on shares of Advanced Drainage Systems in a report on Friday, August 7th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $187.40.

Advanced Drainage Systems Stock Up 5.1%

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's fifty day simple moving average is $130.97 and its two-hundred day simple moving average is $143.81. The company has a market capitalization of $10.31 billion, a price-to-earnings ratio of 23.62, a P/E/G ratio of 1.49 and a beta of 1.29.

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, topping analysts' consensus estimates of $2.10 by $0.39. Advanced Drainage Systems had a return on equity of 28.28% and a net margin of 14.00%. The firm had revenue of $1 billion for the quarter, compared to analysts' expectations of $991.39 million. During the same quarter last year, the business posted $1.95 EPS. Advanced Drainage Systems's revenue was up 20.6% on a year-over-year basis. On average, sell-side analysts anticipate that Advanced Drainage Systems, Inc. will post 6.57 EPS for the current year.

Advanced Drainage Systems Dividend Announcement

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

Institutional Investors Weigh In On Advanced Drainage Systems

Several large investors have recently made changes to their positions in the company. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Advanced Drainage Systems in the second quarter valued at $3,297,000. BlackRock Inc. purchased a new position in Advanced Drainage Systems in the second quarter valued at $1,172,482,000. Cibc World Market Inc. acquired a new position in Advanced Drainage Systems during the 2nd quarter worth $1,278,000. Weiss Asset Management LP acquired a new position in Advanced Drainage Systems during the 1st quarter worth $5,170,000. Finally, Amundi grew its stake in Advanced Drainage Systems by 5.1% during the 2nd quarter. Amundi now owns 1,354,610 shares of the construction company's stock worth $212,681,000 after purchasing an additional 65,938 shares in the last quarter. Institutional investors own 89.83% of the company's stock.

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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