Advanced Drainage Systems (NYSE:WMS) Shares Up 7.8% Following Earnings Beat

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS) were up 7.8% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $173.07 and last traded at $172.7380. Approximately 623,397 shares changed hands during mid-day trading, a decline of 11% from the average daily volume of 696,708 shares. The stock had previously closed at $160.26.

The construction company reported $1.27 EPS for the quarter, beating the consensus estimate of $1.11 by $0.16. Advanced Drainage Systems had a return on equity of 28.85% and a net margin of 15.35%.The firm had revenue of $693.35 million during the quarter, compared to the consensus estimate of $686.37 million. During the same quarter in the previous year, the company posted $1.09 earnings per share. The company’s quarterly revenue was up .4% on a year-over-year basis.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Advanced Drainage Systems in a report on Wednesday, January 21st. Oppenheimer lifted their price target on Advanced Drainage Systems from $175.00 to $180.00 and gave the company an “outperform” rating in a research note on Thursday, January 15th. KeyCorp boosted their price objective on Advanced Drainage Systems from $170.00 to $180.00 and gave the stock an “overweight” rating in a report on Monday, January 26th. Royal Bank Of Canada restated an “outperform” rating and issued a $176.00 target price on shares of Advanced Drainage Systems in a report on Thursday, January 15th. Finally, Barclays upped their price target on Advanced Drainage Systems from $181.00 to $187.00 and gave the stock an “overweight” rating in a report on Thursday, January 15th. Eight research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $165.33.

Insiders Place Their Bets

In other news, EVP Thomas J. Sr. Waun sold 1,000 shares of the firm’s stock in a transaction on Wednesday, November 12th. The stock was sold at an average price of $150.00, for a total transaction of $150,000.00. Following the completion of the sale, the executive vice president directly owned 14,970 shares of the company’s stock, valued at $2,245,500. This trade represents a 6.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Tim A. Makowski sold 4,901 shares of the business’s stock in a transaction dated Wednesday, November 12th. The stock was sold at an average price of $149.21, for a total transaction of $731,278.21. Following the completion of the transaction, the insider directly owned 2,467 shares in the company, valued at $368,101.07. This trade represents a 66.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 97,772 shares of company stock valued at $14,605,539. Insiders own 1.63% of the company’s stock.

Institutional Trading of Advanced Drainage Systems

Hedge funds have recently added to or reduced their stakes in the stock. Outlook Wealth Advisors LLC lifted its position in shares of Advanced Drainage Systems by 3.0% during the third quarter. Outlook Wealth Advisors LLC now owns 2,836 shares of the construction company’s stock worth $393,000 after acquiring an additional 82 shares in the last quarter. RWC Asset Management LLP lifted its holdings in Advanced Drainage Systems by 2.7% during the 3rd quarter. RWC Asset Management LLP now owns 3,234 shares of the construction company’s stock worth $449,000 after purchasing an additional 85 shares in the last quarter. CWM LLC boosted its stake in Advanced Drainage Systems by 16.2% in the 3rd quarter. CWM LLC now owns 702 shares of the construction company’s stock worth $97,000 after purchasing an additional 98 shares during the period. Louisiana State Employees Retirement System grew its holdings in Advanced Drainage Systems by 0.5% during the 2nd quarter. Louisiana State Employees Retirement System now owns 19,900 shares of the construction company’s stock valued at $2,286,000 after buying an additional 100 shares in the last quarter. Finally, State of Michigan Retirement System increased its position in shares of Advanced Drainage Systems by 0.6% during the second quarter. State of Michigan Retirement System now owns 17,000 shares of the construction company’s stock valued at $1,953,000 after buying an additional 100 shares during the period. Institutional investors own 89.83% of the company’s stock.

Advanced Drainage Systems Stock Performance

The business’s fifty day moving average price is $151.81 and its 200-day moving average price is $143.12. The company has a debt-to-equity ratio of 0.75, a current ratio of 3.48 and a quick ratio of 2.60. The stock has a market capitalization of $13.34 billion, a PE ratio of 29.24, a P/E/G ratio of 2.03 and a beta of 1.34.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc (NYSE: WMS) is a leading manufacturer and supplier of water management solutions in North America. Headquartered in Hilliard, Ohio, the company specializes in the design, production and distribution of high-density polyethylene (HDPE) drainage pipe and related products. Its core business addresses stormwater management, on-site septic systems and erosion control for residential, commercial and infrastructure projects.

The company’s product portfolio includes corrugated plastic pipe, tubing, fittings, geocells, geogrids and stormwater structures such as inlets, manholes and detention/retention systems.