Advanced Drainage Systems (NYSE:WMS) Shares Cross Above 50 Day Moving Average on Analyst Downgrade

Key Points

• DA Davidson upgraded Advanced Drainage Systems to Strong Buy, and the shares moved above their 50-day moving average of $129.91, reaching $133.13 during trading.
• Analyst sentiment is broadly positive: eight analysts rate the stock Buy and two Hold, for a Moderate Buy consensus and an average price target of $184.40.
• Quarterly EPS of $1.88 beat estimates of $1.81, while revenue of $889.41 million fell short of forecasts; revenue rose 4.6% year over year. The company also declared a $0.20-per-share quarterly dividend.

Advanced Drainage Systems, Inc. (NYSE:WMS - Get Free Report)'s stock price crossed above its 50-day moving average during trading on Monday after DA Davidson upgraded the stock to a strong-buy rating. The stock has a 50-day moving average of $129.91 and traded as high as $133.13. Advanced Drainage Systems shares last traded at $131.1230, with a volume of 973,727 shares changing hands.

Several other equities analysts have also recently weighed in on the company. Jefferies Financial Group assumed coverage on Advanced Drainage Systems in a research note on Thursday, June 11th. They set a "buy" rating and a $175.00 price objective on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Advanced Drainage Systems in a report on Friday, July 17th. Oppenheimer reduced their target price on shares of Advanced Drainage Systems from $195.00 to $190.00 and set an "outperform" rating for the company in a research note on Tuesday, May 26th. Barclays increased 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. Finally, Zacks Research raised shares of Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a research report on Monday, July 27th. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $184.40.

Institutional Trading of Advanced Drainage Systems

Institutional investors and hedge funds have recently modified their holdings of the business. Allworth Financial LP purchased a new position in Advanced Drainage Systems in the second quarter worth $26,000. Gen Wealth Partners Inc bought a new stake in shares of Advanced Drainage Systems during the 3rd quarter worth $29,000. Avalon Trust Co bought a new stake in shares of Advanced Drainage Systems during the 2nd quarter worth $42,000. Vega Investment Solutions bought a new stake in shares of Advanced Drainage Systems during the 2nd quarter worth $50,000. Finally, Heritage Family Offices LLP purchased a new position in shares of Advanced Drainage Systems in the 3rd quarter worth about $53,000. 89.83% of the stock is owned by hedge funds and other institutional investors.

Advanced Drainage Systems Stock Up 5.5%

The stock's fifty day moving average is $129.91 and its two-hundred day moving average is $142.96. 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 capitalization of $9.89 billion, a PE ratio of 24.93, a P/E/G ratio of 1.65 and a beta of 1.30.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The construction company reported $1.88 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.81 by $0.07. The business had revenue of $889.41 million during the quarter, compared to the consensus estimate of $921.79 million. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The firm's quarterly revenue was up 4.6% compared to the same quarter last year. During the same quarter last year, the company posted $1.97 earnings per share. As a group, analysts predict that Advanced Drainage Systems, Inc. will post 6.52 EPS for the current year.

Advanced Drainage Systems Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Tuesday, December 1st. Advanced Drainage Systems's dividend payout ratio is currently 15.21%.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc NYSE: WMS manufactures water-management products for infrastructure, construction, agriculture and residential markets. Its offerings include thermoplastic corrugated pipe and related products used to manage stormwater, drainage and wastewater.

The company also provides stormwater storage, treatment and infiltration systems, as well as products for onsite wastewater and septic systems through its Infiltrator Water Technologies business. Its portfolio includes solutions for projects ranging from roadways and commercial developments to residential wastewater applications.

Founded in 1966 and headquartered in Hilliard, Ohio, Advanced Drainage Systems serves customers across North America and in international markets.

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