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

Advanced Drainage Systems, Inc. (NYSE:WMS)’s stock price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $160.85 and last traded at $157.3980, with a volume of 44601 shares trading hands. The stock had previously closed at $157.15.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on WMS shares. Royal Bank Of Canada reissued an “outperform” rating and issued a $176.00 price target on shares of Advanced Drainage Systems in a report on Thursday, January 15th. Oppenheimer raised their price target on shares of Advanced Drainage Systems from $175.00 to $180.00 and gave the stock an “outperform” rating in a research note on Thursday, January 15th. Weiss Ratings reissued a “hold (c)” rating on shares of Advanced Drainage Systems in a report on Wednesday. Barclays boosted their target price on Advanced Drainage Systems from $181.00 to $187.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. Finally, KeyCorp increased their price target on Advanced Drainage Systems from $159.00 to $170.00 and gave the stock an “overweight” rating in a research note on Friday, November 7th. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, Advanced Drainage Systems presently has an average rating of “Moderate Buy” and an average target price of $164.22.

Advanced Drainage Systems Stock Down 1.7%

The stock has a market capitalization of $11.91 billion, a P/E ratio of 26.13, a price-to-earnings-growth ratio of 2.02 and a beta of 1.33. 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 fifty day moving average price of $150.45 and a 200 day moving average price of $140.81.

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

Advanced Drainage Systems Announces Dividend

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

Insider Activity

In other Advanced Drainage Systems news, insider Tim A. Makowski sold 4,901 shares of the firm’s stock in a transaction dated Wednesday, November 12th. The stock was sold at an average price of $149.21, for a total value of $731,278.21. Following the sale, the insider owned 2,467 shares of the company’s stock, valued at $368,101.07. This trade represents a 66.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider D. Scott Barbour sold 80,030 shares of Advanced Drainage Systems stock in a transaction dated Wednesday, November 12th. The shares were sold at an average price of $148.95, for a total value of $11,920,468.50. Following the sale, the insider owned 42,867 shares of the company’s stock, valued at approximately $6,385,039.65. This trade represents a 65.12% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 97,772 shares of company stock worth $14,605,539. Company insiders own 1.63% of the company’s stock.

Institutional Investors Weigh In On Advanced Drainage Systems

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Impax Asset Management Group plc lifted its position in Advanced Drainage Systems by 4.8% during the second quarter. Impax Asset Management Group plc now owns 3,043,909 shares of the construction company’s stock valued at $348,709,000 after purchasing an additional 139,495 shares during the last quarter. State Street Corp raised its position in shares of 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 in the last quarter. First Trust Advisors LP lifted its holdings in shares of Advanced Drainage Systems by 10.9% during 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. American Century Companies Inc. grew its position in 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 worth $204,191,000 after acquiring an additional 90,106 shares in the last quarter. Finally, Wellington Management Group LLP increased its stake in Advanced Drainage Systems by 234.0% in the third quarter. Wellington Management Group LLP now owns 1,188,906 shares of the construction company’s stock valued at $164,901,000 after acquiring an additional 832,929 shares during the last quarter. 89.83% of the stock is owned by hedge funds and other institutional investors.

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.