Advanced Drainage Systems (NYSE:WMS) Shares Gap Up on Strong Earnings

Advanced Drainage Systems, Inc. (NYSE:WMS)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $113.91, but opened at $125.10. Advanced Drainage Systems shares last traded at $133.59, with a volume of 397,595 shares trading hands.

The construction company reported $1.95 earnings per share for the quarter, topping the consensus estimate of $1.78 by $0.17. Advanced Drainage Systems had a return on equity of 32.33% and a net margin of 15.50%. The firm had revenue of $829.88 million for the quarter, compared to analyst estimates of $800.54 million. During the same period in the previous year, the company posted $2.06 earnings per share. The company’s revenue for the quarter was up 1.8% on a year-over-year basis.

Advanced Drainage Systems Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 29th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 0.5%. Advanced Drainage Systems’s dividend payout ratio (DPR) is currently 12.50%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. UBS Group cut their price target on shares of Advanced Drainage Systems from $155.00 to $146.00 and set a “buy” rating on the stock in a research note on Friday, May 16th. Wall Street Zen cut shares of Advanced Drainage Systems from a “hold” rating to a “sell” rating in a research report on Saturday, July 26th. Oppenheimer dropped their price target on Advanced Drainage Systems from $165.00 to $160.00 and set an “outperform” rating on the stock in a research note on Friday, May 16th. Barclays upped their price objective on Advanced Drainage Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research report on Friday, May 16th. Finally, Robert W. Baird dropped their target price on Advanced Drainage Systems from $146.00 to $141.00 and set an “outperform” rating on the stock in a research report on Friday, May 16th. One analyst has rated the stock with a sell rating, one has given a hold rating and seven have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $139.88.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. NBC Securities Inc. acquired a new stake in shares of Advanced Drainage Systems in the 1st quarter valued at approximately $26,000. Bessemer Group Inc. raised its position in Advanced Drainage Systems by 76.2% during the first quarter. Bessemer Group Inc. now owns 266 shares of the construction company’s stock worth $29,000 after acquiring an additional 115 shares in the last quarter. Parallel Advisors LLC lifted its stake in Advanced Drainage Systems by 177.4% in the second quarter. Parallel Advisors LLC now owns 430 shares of the construction company’s stock valued at $49,000 after acquiring an additional 275 shares during the last quarter. Banque Cantonale Vaudoise bought a new position in shares of Advanced Drainage Systems in the 1st quarter valued at about $66,000. Finally, Signaturefd LLC increased its stake in shares of Advanced Drainage Systems by 110.7% during the 1st quarter. Signaturefd LLC now owns 670 shares of the construction company’s stock worth $73,000 after purchasing an additional 352 shares during the last quarter. 89.83% of the stock is owned by institutional investors and hedge funds.

Advanced Drainage Systems Stock Performance

The company has a market capitalization of $10.36 billion, a P/E ratio of 23.16, a PEG ratio of 1.65 and a beta of 1.27. The stock’s fifty day moving average price is $115.95 and its 200-day moving average price is $114.40. The company has a debt-to-equity ratio of 0.90, a quick ratio of 2.10 and a current ratio of 3.33.

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.