Advanced Drainage Systems (NYSE:WMS) Shares Gap Down Following Weak Earnings

Advanced Drainage Systems, Inc. (NYSE:WMS) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $121.68, but opened at $106.77. Advanced Drainage Systems shares last traded at $113.91, with a volume of 311,175 shares trading hands.

The construction company reported $1.03 EPS for the quarter, missing the consensus estimate of $1.09 by ($0.06). The business had revenue of $615.76 million for the quarter, compared to analysts’ expectations of $653.22 million. Advanced Drainage Systems had a net margin of 15.90% and a return on equity of 35.79%.

Advanced Drainage Systems Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 16th. Investors of record on Friday, May 30th will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 0.59%. This is a positive change from Advanced Drainage Systems’s previous quarterly dividend of $0.16. The ex-dividend date is Friday, May 30th. Advanced Drainage Systems’s dividend payout ratio is currently 10.70%.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on WMS shares. Deutsche Bank Aktiengesellschaft started coverage on shares of Advanced Drainage Systems in a report on Tuesday, April 1st. They issued a “buy” rating and a $134.00 target price for the company. Loop Capital cut their price objective on shares of Advanced Drainage Systems from $143.00 to $133.00 and set a “buy” rating for the company in a report on Friday. StockNews.com raised shares of Advanced Drainage Systems from a “sell” rating to a “hold” rating in a report on Monday, May 5th. Stephens reaffirmed an “equal weight” rating and set a $135.00 price objective on shares of Advanced Drainage Systems in a report on Friday, February 7th. Finally, UBS Group cut their price objective on shares of Advanced Drainage Systems from $155.00 to $146.00 and set a “buy” rating for the company in a report on Friday. Two research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $139.88.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. UMB Bank n.a. boosted its position in shares of Advanced Drainage Systems by 12.7% during the 4th quarter. UMB Bank n.a. now owns 781 shares of the construction company’s stock valued at $90,000 after acquiring an additional 88 shares during the last quarter. Blue Trust Inc. boosted its position in shares of Advanced Drainage Systems by 12.0% during the 4th quarter. Blue Trust Inc. now owns 1,005 shares of the construction company’s stock valued at $116,000 after acquiring an additional 108 shares during the last quarter. US Bancorp DE boosted its position in shares of Advanced Drainage Systems by 5.7% during the 1st quarter. US Bancorp DE now owns 2,017 shares of the construction company’s stock valued at $219,000 after acquiring an additional 109 shares during the last quarter. Bessemer Group Inc. boosted its position in shares of Advanced Drainage Systems by 76.2% during the 1st quarter. Bessemer Group Inc. now owns 266 shares of the construction company’s stock valued at $29,000 after acquiring an additional 115 shares during the last quarter. Finally, CIBC Asset Management Inc boosted its position in shares of Advanced Drainage Systems by 5.2% during the 4th quarter. CIBC Asset Management Inc now owns 2,390 shares of the construction company’s stock valued at $276,000 after acquiring an additional 119 shares during the last quarter. 89.83% of the stock is currently owned by institutional investors.

Advanced Drainage Systems Stock Up 3.6%

The company has a current ratio of 3.21, a quick ratio of 1.98 and a debt-to-equity ratio of 0.93. The stock has a market capitalization of $9.44 billion, a P/E ratio of 20.36, a P/E/G ratio of 1.13 and a beta of 1.31. The business has a 50-day moving average price of $109.69 and a 200 day moving average price of $119.53.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators.