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

Advanced Drainage Systems, Inc. (NYSE:WMS)’s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $176.18, but opened at $180.64. Advanced Drainage Systems shares last traded at $171.83, with a volume of 246,612 shares changing hands.

The construction company reported $1.23 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.28. Advanced Drainage Systems had a net margin of 17.74% and a return on equity of 46.93%. The company had revenue of $653.80 million for the quarter, compared to analysts’ expectations of $611.99 million. During the same period in the prior year, the company posted $1.06 EPS. Advanced Drainage Systems’s revenue was up 5.9% compared to the same quarter last year.

Advanced Drainage Systems Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 14th. Stockholders of record on Friday, May 31st will be given a $0.16 dividend. This is a positive change from Advanced Drainage Systems’s previous quarterly dividend of $0.14. This represents a $0.64 dividend on an annualized basis and a dividend yield of 0.37%. The ex-dividend date of this dividend is Friday, May 31st. Advanced Drainage Systems’s dividend payout ratio (DPR) is 8.70%.

Analyst Ratings Changes

WMS has been the subject of a number of recent analyst reports. KeyCorp boosted their price target on shares of Advanced Drainage Systems from $185.00 to $195.00 and gave the company an “overweight” rating in a research report on Friday. StockNews.com upgraded shares of Advanced Drainage Systems from a “hold” rating to a “buy” rating in a research report on Wednesday, May 1st. Stephens boosted their price target on shares of Advanced Drainage Systems from $182.00 to $193.00 and gave the stock an “overweight” rating in a research note on Friday. Oppenheimer raised their price objective on shares of Advanced Drainage Systems from $172.00 to $180.00 and gave the company an “outperform” rating in a research report on Thursday, April 18th. Finally, Robert W. Baird increased their target price on Advanced Drainage Systems from $192.00 to $200.00 and gave the company an “outperform” rating in a research note on Friday. One analyst has rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. According to data from MarketBeat, Advanced Drainage Systems currently has an average rating of “Moderate Buy” and an average target price of $175.00.

Insider Activity at Advanced Drainage Systems

In other Advanced Drainage Systems news, Director Ross M. Jones sold 762,895 shares of the business’s stock in a transaction on Wednesday, February 28th. The shares were sold at an average price of $163.00, for a total transaction of $124,351,885.00. Following the transaction, the director now directly owns 70,749 shares of the company’s stock, valued at approximately $11,532,087. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In other Advanced Drainage Systems news, Director Ross M. Jones sold 762,895 shares of the company’s stock in a transaction that occurred on Wednesday, February 28th. The stock was sold at an average price of $163.00, for a total transaction of $124,351,885.00. Following the transaction, the director now owns 70,749 shares in the company, valued at approximately $11,532,087. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Michael G. Huebert sold 10,000 shares of Advanced Drainage Systems stock in a transaction that occurred on Wednesday, March 6th. The shares were sold at an average price of $163.52, for a total value of $1,635,200.00. Following the sale, the executive vice president now owns 13,450 shares in the company, valued at $2,199,344. The disclosure for this sale can be found here. 3.79% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Advanced Drainage Systems

A number of institutional investors have recently modified their holdings of WMS. NBC Securities Inc. purchased a new position in Advanced Drainage Systems in the 3rd quarter worth approximately $25,000. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of Advanced Drainage Systems by 319.4% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 151 shares of the construction company’s stock valued at $26,000 after purchasing an additional 115 shares in the last quarter. Contravisory Investment Management Inc. bought a new stake in Advanced Drainage Systems in the 4th quarter worth about $27,000. GAMMA Investing LLC purchased a new stake in Advanced Drainage Systems during the fourth quarter valued at approximately $28,000. Finally, Rise Advisors LLC purchased a new position in shares of Advanced Drainage Systems during the 1st quarter worth $32,000. 89.83% of the stock is owned by hedge funds and other institutional investors.

Advanced Drainage Systems Stock Performance

The business’s 50-day moving average price is $166.07 and its 200-day moving average price is $146.27. The stock has a market cap of $13.52 billion, a P/E ratio of 27.04, a P/E/G ratio of 1.51 and a beta of 1.51. The company has a debt-to-equity ratio of 1.13, a quick ratio of 2.04 and a current ratio of 2.96.

Advanced Drainage Systems Company Profile

Advanced Drainage Systems, Inc designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the construction and agriculture marketplaces in the United States, Canada, Mexico, and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments.