Advanced Drainage Systems (NYSE:WMS) Reaches New 52-Week Low – Time to Sell?

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS) reached a new 52-week low on Thursday . The company traded as low as $127.50 and last traded at $127.6450, with a volume of 333491 shares traded. The stock had previously closed at $131.78.

Wall Street Analyst Weigh In

WMS has been the topic of several recent analyst reports. Barclays upped their price target on shares of Advanced Drainage Systems from $181.00 to $191.00 and gave the company an “overweight” rating in a report on Tuesday, July 14th. Weiss Ratings restated a “hold (c)” rating on shares of Advanced Drainage Systems in a research note on Friday, July 17th. Jefferies Financial Group initiated coverage on Advanced Drainage Systems in a research note on Thursday, June 11th. They issued a “buy” rating and a $175.00 price target for the company. Oppenheimer cut their price objective on Advanced Drainage Systems from $195.00 to $190.00 and set an “outperform” rating on the stock in a research note on Tuesday, May 26th. Finally, National Bank Financial set a $190.00 target price on Advanced Drainage Systems in a research report on Monday, August 24th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $188.70.

Advanced Drainage Systems Trading Down 3.3%

The company has a quick ratio of 1.18, a current ratio of 2.12 and a debt-to-equity ratio of 0.95. The firm’s 50 day moving average is $143.37 and its two-hundred day moving average is $144.19. The stock has a market cap of $9.61 billion, a price-to-earnings ratio of 22.03, a price-to-earnings-growth ratio of 1.46 and a beta of 1.28.

Advanced Drainage Systems (NYSE:WMS) last posted its 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 during the quarter, compared to analyst estimates of $991.39 million. Advanced Drainage Systems had a return on equity of 28.28% and a net margin of 14.00%.The business’s revenue was up 20.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.95 earnings per share. Equities analysts anticipate that Advanced Drainage Systems, Inc. will post 6.62 EPS for the current year.

Advanced Drainage Systems Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be given a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.80 annualized dividend and a yield of 0.6%. Advanced Drainage Systems’s dividend payout ratio (DPR) is currently 13.82%.

Hedge Funds Weigh In On Advanced Drainage Systems

Hedge funds and other institutional investors have recently modified their holdings of the company. California State Teachers Retirement System increased its stake in shares of Advanced Drainage Systems by 15,172.0% in the second quarter. California State Teachers Retirement System now owns 13,246,953 shares of the construction company’s stock valued at $2,079,242,000 after purchasing an additional 13,160,213 shares during the period. BlackRock Inc. acquired a new stake in Advanced Drainage Systems in the 2nd quarter valued at approximately $1,172,482,000. State Street Corp raised its stake in Advanced Drainage Systems by 3.1% during the 3rd quarter. State Street Corp now owns 2,551,901 shares of the construction company’s stock valued at $353,949,000 after acquiring an additional 75,777 shares in the last quarter. Pictet Asset Management Holding SA boosted its position in Advanced Drainage Systems by 32.9% during the 1st 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 period. Finally, Amundi grew its stake in shares of Advanced Drainage Systems by 5.1% in the second quarter. Amundi now owns 1,354,610 shares of the construction company’s stock worth $212,681,000 after purchasing an additional 65,938 shares in the last quarter. Institutional investors and hedge funds own 89.83% of the company’s stock.

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.