Advanced Drainage Systems (NYSE:WMS) Hits New 12-Month Low – Time to Sell?

Advanced Drainage Systems, Inc. (NYSE:WMS)’s stock price reached a new 52-week low during mid-day trading on Wednesday. The company traded as low as $124.39 and last traded at $125.1320, with a volume of 157580 shares trading hands. The stock had previously closed at $130.07.

Analyst Upgrades and Downgrades

WMS has been the topic of a number of analyst reports. Royal Bank Of Canada increased their price target on Advanced Drainage Systems from $170.00 to $178.00 and gave the company an “outperform” rating in a research report on Friday, August 7th. Zacks Research upgraded shares of Advanced Drainage Systems from a “strong sell” rating to a “hold” rating in a research note on Monday, July 27th. DA Davidson reaffirmed a “buy” rating and issued a $190.00 target price on shares of Advanced Drainage Systems in a report on Tuesday. Robert W. Baird set a $206.00 price target on shares of Advanced Drainage Systems in a research note on Friday, August 7th. Finally, National Bank Financial set a $190.00 price target on shares of Advanced Drainage Systems in a report on Monday, August 24th. Eight investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $188.70.

Advanced Drainage Systems Stock Down 3.5%

The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.18 and a current ratio of 2.12. The firm has a market cap of $9.46 billion, a price-to-earnings ratio of 21.68, a price-to-earnings-growth ratio of 1.42 and a beta of 1.29. The firm has a 50-day moving average price of $136.24 and a two-hundred day moving average price of $140.57.

Advanced Drainage Systems (NYSE:WMS) last announced its quarterly earnings results on Thursday, August 6th. The construction company reported $2.49 EPS for the quarter, beating the consensus estimate of $2.10 by $0.39. The company had revenue of $1 billion for the quarter, compared to analyst estimates of $991.39 million. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The firm’s revenue was up 20.6% on a year-over-year basis. During the same period in the prior year, the firm posted $1.95 earnings per share. On average, sell-side analysts forecast that Advanced Drainage Systems, Inc. will post 6.62 earnings per share for the current year.

Advanced Drainage Systems Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 0.6%. The ex-dividend date was Tuesday, September 1st. Advanced Drainage Systems’s dividend payout ratio (DPR) is currently 13.82%.

Hedge Funds Weigh In On Advanced Drainage Systems

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Advanced Drainage Systems in the 2nd quarter valued at about $1,172,482,000. Pictet Asset Management Holding SA grew its position in shares of Advanced Drainage Systems by 32.9% during the first quarter. Pictet Asset Management Holding SA now owns 2,204,801 shares of the construction company’s stock worth $302,290,000 after acquiring an additional 546,298 shares during the last quarter. Amundi increased its holdings in shares of Advanced Drainage Systems by 5.1% in the 2nd quarter. Amundi now owns 1,354,610 shares of the construction company’s stock valued at $212,681,000 after acquiring an additional 65,938 shares during the period. Capital International Investors increased its holdings in shares of Advanced Drainage Systems by 0.3% in the 4th quarter. Capital International Investors now owns 936,239 shares of the construction company’s stock valued at $135,595,000 after acquiring an additional 2,388 shares during the period. Finally, KBC Group NV raised its position in Advanced Drainage Systems by 1.7% in the 1st quarter. KBC Group NV now owns 916,981 shares of the construction company’s stock valued at $125,746,000 after purchasing an additional 14,915 shares during the last quarter. Hedge funds and other institutional investors own 89.83% of the company’s stock.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc (NYSE:WMS) designs and manufactures water management solutions for infrastructure, construction, agriculture and residential applications. The company is best known for its thermoplastic corrugated pipe and related products used to manage stormwater, drainage and wastewater.

Its product portfolio includes stormwater detention and treatment systems, drainage pipe, septic wastewater systems, fittings, chambers, pumps and other water management components. Advanced Drainage Systems also provides products for agricultural drainage, commercial and residential construction, and large-scale infrastructure projects.

Founded in 1966 and headquartered in Hilliard, Ohio, the company serves customers primarily across North America through manufacturing facilities, distribution centers and a network of independent distributors.