Advanced Drainage Systems (NYSE:WMS) Reaches New 12-Month High After Better-Than-Expected Earnings

Shares of Advanced Drainage Systems, Inc. (NYSE:WMSGet Rating) reached a new 52-week high during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $138.62 and last traded at $137.02, with a volume of 26649 shares changing hands. The stock had previously closed at $136.82.

The construction company reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.00 by $1.22. The firm had revenue of $914.20 million for the quarter, compared to analyst estimates of $849.39 million. Advanced Drainage Systems had a net margin of 9.75% and a return on equity of 37.32%. The firm’s quarterly revenue was up 36.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.87 earnings per share.

Advanced Drainage Systems Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 15th. Shareholders of record on Thursday, September 1st will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 0.34%. The ex-dividend date is Wednesday, August 31st. Advanced Drainage Systems’s payout ratio is 15.24%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on WMS shares. Morgan Stanley lowered their price objective on shares of Advanced Drainage Systems from $142.00 to $120.00 and set an “overweight” rating on the stock in a research report on Tuesday, June 28th. Robert W. Baird lifted their price objective on shares of Advanced Drainage Systems from $119.00 to $170.00 and gave the company an “outperform” rating in a research note on Friday. Loop Capital cut their target price on shares of Advanced Drainage Systems from $158.00 to $124.00 and set a “buy” rating for the company in a research report on Friday, July 8th. TheStreet lowered shares of Advanced Drainage Systems from a “b” rating to a “c+” rating in a research report on Thursday, May 19th. Finally, Barclays upped their price objective on shares of Advanced Drainage Systems from $135.00 to $164.00 and gave the stock an “overweight” rating in a research note on Friday. Two research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $144.50.

Insider Activity at Advanced Drainage Systems

In other news, CAO Kevin C. Talley sold 26,500 shares of the stock in a transaction on Tuesday, June 14th. The shares were sold at an average price of $90.54, for a total transaction of $2,399,310.00. Following the completion of the sale, the chief accounting officer now owns 62,025 shares of the company’s stock, valued at $5,615,743.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, Director Anil Seetharam sold 200,000 shares of Advanced Drainage Systems stock in a transaction dated Tuesday, June 7th. The shares were sold at an average price of $112.45, for a total value of $22,490,000.00. Following the completion of the transaction, the director now owns 6,167,265 shares of the company’s stock, valued at approximately $693,508,949.25. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CAO Kevin C. Talley sold 26,500 shares of the firm’s stock in a transaction dated Tuesday, June 14th. The stock was sold at an average price of $90.54, for a total transaction of $2,399,310.00. Following the sale, the chief accounting officer now owns 62,025 shares of the company’s stock, valued at approximately $5,615,743.50. The disclosure for this sale can be found here. Insiders have sold 355,426 shares of company stock worth $38,979,477 over the last ninety days. Company insiders own 9.33% of the company’s stock.

Institutional Trading of Advanced Drainage Systems

A number of hedge funds have recently modified their holdings of the stock. Keystone Financial Group acquired a new stake in Advanced Drainage Systems in the 2nd quarter worth about $620,000. Illinois Municipal Retirement Fund raised its stake in Advanced Drainage Systems by 110.4% in the 2nd quarter. Illinois Municipal Retirement Fund now owns 8,144 shares of the construction company’s stock worth $734,000 after purchasing an additional 4,273 shares in the last quarter. Regents of The University of California acquired a new stake in Advanced Drainage Systems in the 2nd quarter worth about $1,275,000. BRR OpCo LLC raised its stake in Advanced Drainage Systems by 56.3% in the 2nd quarter. BRR OpCo LLC now owns 237,438 shares of the construction company’s stock worth $21,386,000 after purchasing an additional 85,518 shares in the last quarter. Finally, State of New Jersey Common Pension Fund D increased its holdings in Advanced Drainage Systems by 21.4% in the 2nd quarter. State of New Jersey Common Pension Fund D now owns 37,039 shares of the construction company’s stock valued at $3,336,000 after buying an additional 6,537 shares during the period. Institutional investors and hedge funds own 98.10% of the company’s stock.

Advanced Drainage Systems Trading Up 2.2 %

The company has a debt-to-equity ratio of 1.01, a quick ratio of 0.97 and a current ratio of 2.23. The stock has a market capitalization of $11.87 billion, a P/E ratio of 44.37 and a beta of 1.51. The firm’s fifty day simple moving average is $100.96 and its 200 day simple moving average is $108.35.

About Advanced Drainage Systems

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Advanced Drainage Systems, Inc designs, manufactures, and markets thermoplastic corrugated pipes and related water management products, and drainage solutions for use in the underground construction and infrastructure marketplace in the United States, Canada, Mexico, and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments.

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