Advanced Drainage Systems (NYSE:WMS) Stock Keeps Buy Rating at DA Davidson

DA Davidson reiterated their buy rating on shares of Advanced Drainage Systems (NYSE:WMS) in a report issued on Tuesday morning, MarketBeat Ratings reports. DA Davidson currently has a $190.00 target price on the construction company’s stock.

Other analysts have also recently issued reports about the company. National Bank Financial set a $190.00 price objective on Advanced Drainage Systems in a research report on Monday, August 24th. Zacks Research raised Advanced Drainage Systems from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. KeyCorp restated an “overweight” rating on shares of Advanced Drainage Systems in a research note on Monday, June 22nd. Robert W. Baird set a $206.00 price target on Advanced Drainage Systems in a report on Friday, August 7th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Advanced Drainage Systems in a report on Friday, July 17th. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $188.70.

Advanced Drainage Systems Stock Up 0.5%

Advanced Drainage Systems stock opened at $130.03 on Tuesday. The firm has a market capitalization of $9.80 billion, a PE ratio of 22.46, a P/E/G ratio of 1.42 and a beta of 1.29. The company’s 50-day moving average is $136.24 and its 200-day moving average is $140.57. Advanced Drainage Systems has a fifty-two week low of $124.61 and a fifty-two week high of $179.32. The company has a debt-to-equity ratio of 0.95, a current ratio of 2.12 and a quick ratio of 1.18.

Advanced Drainage Systems (NYSE:WMS) last issued its earnings results on Thursday, August 6th. The construction company reported $2.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.10 by $0.39. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The business had revenue of $1 billion during the quarter, compared to the consensus estimate of $991.39 million. During the same period last year, the business posted $1.95 EPS. Advanced Drainage Systems’s revenue was up 20.6% on a year-over-year basis. Sell-side analysts anticipate that Advanced Drainage Systems will post 6.62 earnings per share for the current year.

Advanced Drainage Systems Dividend Announcement

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

Hedge Funds Weigh In On Advanced Drainage Systems

A number of large investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Advanced Drainage Systems in the 2nd quarter valued at $1,172,482,000. Pictet Asset Management Holding SA increased its position in Advanced Drainage Systems by 32.9% during the 1st quarter. Pictet Asset Management Holding SA now owns 2,204,801 shares of the construction company’s stock worth $302,290,000 after buying an additional 546,298 shares during the period. Amundi lifted its holdings in shares of Advanced Drainage Systems by 5.1% during the second quarter. Amundi now owns 1,354,610 shares of the construction company’s stock worth $212,681,000 after buying an additional 65,938 shares in the last quarter. Capital International Investors lifted its holdings in shares of Advanced Drainage Systems by 0.3% during the fourth quarter. Capital International Investors now owns 936,239 shares of the construction company’s stock worth $135,595,000 after buying an additional 2,388 shares in the last quarter. Finally, KBC Group NV boosted its position in shares of Advanced Drainage Systems by 1.7% in the first quarter. KBC Group NV now owns 916,981 shares of the construction company’s stock valued at $125,746,000 after acquiring an additional 14,915 shares during the period. Institutional investors own 89.83% of the company’s stock.

Trending Headlines about Advanced Drainage Systems

Here are the key news stories impacting Advanced Drainage Systems this week:

• Positive Sentiment: DA Davidson reaffirmed its “Buy” rating on Advanced Drainage Systems and set a $190 price target, implying substantial upside from the referenced price of $130.03. The call signals continued confidence in ADS’s earnings outlook and water-management business. Advanced Drainage Systems Stock Keeps Buy Rating at DA Davidson
• Positive Sentiment: ADS agreed to acquire StormTrap Investments for approximately $530 million. StormTrap provides engineered, large-volume stormwater systems designed for space-constrained projects. The deal could expand ADS’s product portfolio, strengthen its position in stormwater infrastructure and create cross-selling opportunities. Advanced Drainage Systems Announces Acquisition of StormTrap Investments
• Neutral Sentiment: Sell-side brokerages collectively rate WMS a “Moderate Buy.” The consensus indicates generally constructive sentiment, although it is less bullish than a unanimous Buy rating and does not by itself provide a new earnings catalyst. Advanced Drainage Systems Rated Moderate Buy
• Negative Sentiment: The StormTrap transaction introduces potential near-term risks, including integration costs, execution challenges and the use of substantial capital. Investors may also require evidence that the acquisition will contribute meaningfully to ADS’s earnings and cash flow.

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.