Advanced Drainage Systems (NYSE:WMS) Reaches New 1-Year High – Should You Buy?

Advanced Drainage Systems, Inc. (NYSE:WMS) shares reached a new 52-week high during trading on Monday . The stock traded as high as $156.69 and last traded at $154.0650, with a volume of 85128 shares. The stock had previously closed at $149.63.

Analyst Ratings Changes

Several brokerages have recently weighed in on WMS. KeyCorp lifted their price target on Advanced Drainage Systems from $159.00 to $170.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Advanced Drainage Systems in a report on Wednesday, October 8th. Barclays increased their price target on shares of Advanced Drainage Systems from $176.00 to $181.00 and gave the stock an “overweight” rating in a report on Monday, December 8th. Finally, Royal Bank Of Canada boosted their price objective on shares of Advanced Drainage Systems from $158.00 to $168.00 and gave the company an “outperform” rating in a research note on Friday, November 7th. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $157.11.

Advanced Drainage Systems Stock Performance

The company has a debt-to-equity ratio of 0.75, a quick ratio of 2.60 and a current ratio of 3.48. The stock has a market cap of $11.83 billion, a PE ratio of 25.96, a PEG ratio of 1.94 and a beta of 1.33. The company’s 50-day moving average price is $146.74 and its two-hundred day moving average price is $137.07.

Advanced Drainage Systems (NYSE:WMS) last released its earnings results on Thursday, November 6th. The construction company reported $1.97 EPS for the quarter, beating analysts’ consensus estimates of $1.70 by $0.27. Advanced Drainage Systems had a return on equity of 28.85% and a net margin of 15.35%.The business had revenue of $850.38 million for the quarter, compared to analysts’ expectations of $802.49 million. During the same quarter in the prior year, the firm earned $1.70 earnings per share. The firm’s revenue was up 8.7% on a year-over-year basis. On average, equities research analysts forecast that Advanced Drainage Systems, Inc. will post 6.1 EPS for the current year.

Advanced Drainage Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Investors of record on Monday, December 1st were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Monday, December 1st. Advanced Drainage Systems’s dividend payout ratio (DPR) is currently 12.29%.

Insider Transactions at Advanced Drainage Systems

In other Advanced Drainage Systems news, insider D. Scott Barbour sold 80,030 shares of the company’s stock in a transaction dated Wednesday, November 12th. The shares were sold at an average price of $148.95, for a total transaction of $11,920,468.50. Following the completion of the sale, the insider directly owned 42,867 shares in the company, valued at $6,385,039.65. This represents a 65.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Thomas J. Sr. Waun sold 1,000 shares of Advanced Drainage Systems stock in a transaction dated Wednesday, November 12th. The stock was sold at an average price of $150.00, for a total value of $150,000.00. Following the completion of the transaction, the executive vice president owned 14,970 shares in the company, valued at approximately $2,245,500. This represents a 6.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 97,772 shares of company stock worth $14,605,539 in the last three months. Corporate insiders own 1.63% of the company’s stock.

Hedge Funds Weigh In On Advanced Drainage Systems

Large investors have recently bought and sold shares of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Advanced Drainage Systems by 50.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,114,224 shares of the construction company’s stock valued at $338,360,000 after purchasing an additional 1,049,697 shares during the period. Impax Asset Management Group plc raised its holdings in Advanced Drainage Systems by 4.8% during the 2nd quarter. Impax Asset Management Group plc now owns 3,043,909 shares of the construction company’s stock valued at $348,709,000 after buying an additional 139,495 shares during the last quarter. State Street Corp boosted its position in Advanced Drainage Systems by 3.1% during the 3rd quarter. State Street Corp now owns 2,551,901 shares of the construction company’s stock valued at $353,949,000 after buying an additional 75,777 shares during the period. First Trust Advisors LP grew its holdings in Advanced Drainage Systems by 10.9% in the 3rd quarter. First Trust Advisors LP now owns 2,416,942 shares of the construction company’s stock worth $335,230,000 after acquiring an additional 238,179 shares during the last quarter. Finally, American Century Companies Inc. increased its position in shares of Advanced Drainage Systems by 6.5% in the third quarter. American Century Companies Inc. now owns 1,472,176 shares of the construction company’s stock valued at $204,191,000 after acquiring an additional 90,106 shares during the period. 89.83% of the stock is owned by hedge funds and other institutional investors.

Advanced Drainage Systems Company Profile

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.