Advanced Drainage Systems (NYSE:WMS) Reaches New 1-Year Low – Here’s Why

Advanced Drainage Systems, Inc. (NYSE:WMS)’s share price hit a new 52-week low on Thursday. The stock traded as low as $124.61 and last traded at $124.9330, with a volume of 35877 shares changing hands. The stock had previously closed at $126.71.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. DA Davidson started coverage on Advanced Drainage Systems in a research note on Tuesday, August 25th. They issued a “buy” rating and a $190.00 price target on the stock. Barclays increased their target price 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. Stephens reissued an “overweight” rating and set a $175.00 price target on shares of Advanced Drainage Systems in a research report on Monday, September 21st. KeyCorp restated an “overweight” rating on shares of Advanced Drainage Systems in a research note on Monday, June 22nd. Finally, Jefferies Financial Group started coverage on shares of Advanced Drainage Systems in a report on Thursday, June 11th. They issued a “buy” rating and a $175.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $188.70.

Advanced Drainage Systems Trading Up 0.3%

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 $9.58 billion, a price-to-earnings ratio of 21.95, a price-to-earnings-growth ratio of 1.41 and a beta of 1.28. The firm has a 50-day moving average price of $137.39 and a 200 day moving average price of $140.85.

Advanced Drainage Systems (NYSE:WMS) last announced 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. The firm had revenue of $1 billion for the quarter, compared to analysts’ expectations of $991.39 million. Advanced Drainage Systems had a return on equity of 28.28% and a net margin of 14.00%.The firm’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same period last year, the business posted $1.95 earnings per share. As a group, sell-side analysts forecast that Advanced Drainage Systems, Inc. will post 6.62 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 issued 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 was Tuesday, September 1st. Advanced Drainage Systems’s dividend payout ratio is 13.82%.

Institutional Investors Weigh In On Advanced Drainage Systems

A number of institutional investors have recently modified their holdings of WMS. BlackRock Inc. bought a new position in Advanced Drainage Systems in the second quarter worth about $1,172,482,000. Pictet Asset Management Holding SA grew its holdings in shares of Advanced Drainage Systems by 32.9% during the first quarter. Pictet Asset Management Holding SA now owns 2,204,801 shares of the construction company’s stock valued at $302,290,000 after purchasing an additional 546,298 shares during the last quarter. Amundi raised its position in shares of 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 during the period. Geode Capital Management LLC raised its position in shares of Advanced Drainage Systems by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 1,271,453 shares of the construction company’s stock worth $184,184,000 after purchasing an additional 15,069 shares during the period. Finally, Norges Bank bought a new stake in shares of Advanced Drainage Systems in the 4th quarter worth approximately $156,587,000. Institutional investors own 89.83% of the company’s stock.

About Advanced Drainage Systems

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.