Advanced Drainage Systems (NYSE:WMS) Rating Increased to Strong-Buy at DA Davidson

DA Davidson upgraded shares of Advanced Drainage Systems (NYSE:WMS) to a strong-buy rating in a research report report published on Monday morning,Zacks.com reports.

Several other brokerages have also issued reports on WMS. UBS Group lifted their price objective on shares of Advanced Drainage Systems from $205.00 to $207.00 and gave the company a “buy” rating in a report on Friday, August 7th. National Bank Financial set a $190.00 target price on Advanced Drainage Systems in a report on Monday. Robert W. Baird set a $206.00 target price on Advanced Drainage Systems in a research report on Friday, August 7th. Zacks Research upgraded Advanced Drainage Systems from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Advanced Drainage Systems in a research report on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Advanced Drainage Systems has an average rating of “Moderate Buy” and a consensus target price of $188.70.

Advanced Drainage Systems Stock Performance

Shares of Advanced Drainage Systems stock opened at $141.52 on Monday. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95. The stock’s fifty day moving average price is $146.30 and its 200-day moving average price is $147.00. The firm has a market cap of $10.67 billion, a P/E ratio of 24.44, a P/E/G ratio of 1.54 and a beta of 1.27. Advanced Drainage Systems has a 12 month low of $128.03 and a 12 month high of $179.32.

Advanced Drainage Systems (NYSE:WMS) last released its quarterly earnings data on Thursday, August 6th. The construction company reported $2.49 earnings per share for the quarter, topping analysts’ consensus estimates 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 company had revenue of $1 billion during the quarter, compared to analyst estimates of $991.39 million. During the same period in the prior year, the firm earned $1.95 earnings per share. The firm’s revenue for the quarter was up 20.6% compared to the same quarter last year. On average, equities research analysts expect that Advanced Drainage Systems will post 6.62 earnings per share for the current fiscal year.

Advanced Drainage Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.20 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.6%. Advanced Drainage Systems’s payout ratio is presently 13.82%.

Hedge Funds Weigh In On Advanced Drainage Systems

Hedge funds and other institutional investors have recently modified their holdings of the stock. Allworth Financial LP purchased a new position in shares of Advanced Drainage Systems in the second quarter worth $26,000. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Advanced Drainage Systems by 352.0% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 226 shares of the construction company’s stock worth $26,000 after purchasing an additional 176 shares during the period. SJS Investment Consulting Inc. increased its holdings in Advanced Drainage Systems by 78.1% in the 1st quarter. SJS Investment Consulting Inc. now owns 244 shares of the construction company’s stock worth $33,000 after buying an additional 107 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in Advanced Drainage Systems during the 3rd quarter valued at approximately $36,000. Finally, Kestra Advisory Services LLC purchased a new stake in shares of Advanced Drainage Systems in the 4th quarter valued at $37,000. 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.