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

Advanced Drainage Systems, Inc. (NYSE:WMS) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. 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 traded.

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

Advanced Drainage Systems Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 16th. Investors of record on Friday, May 30th will be given a $0.18 dividend. The ex-dividend date is Friday, May 30th. This is an increase from Advanced Drainage Systems’s previous quarterly dividend of $0.16. This represents a $0.72 dividend on an annualized basis and a yield of 0.59%. Advanced Drainage Systems’s dividend payout ratio (DPR) is currently 10.70%.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on WMS shares. UBS Group lowered their price target on Advanced Drainage Systems from $155.00 to $146.00 and set a “buy” rating for the company in a research report on Friday. Deutsche Bank Aktiengesellschaft started coverage on Advanced Drainage Systems in a research report on Tuesday, April 1st. They issued a “buy” rating and a $134.00 price target for the company. Oppenheimer lowered their price target on Advanced Drainage Systems from $165.00 to $160.00 and set an “outperform” rating for the company in a research report on Friday. StockNews.com upgraded Advanced Drainage Systems from a “sell” rating to a “hold” rating in a research report on Monday, May 5th. Finally, Stephens restated an “equal weight” rating and issued a $135.00 price target on shares of Advanced Drainage Systems in a research report on Friday, February 7th. Two analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $139.88.

Institutional Trading of Advanced Drainage Systems

Several institutional investors and hedge funds have recently made changes to their positions in the business. UMB Bank n.a. lifted its position in shares of Advanced Drainage Systems by 12.7% during the fourth quarter. UMB Bank n.a. now owns 781 shares of the construction company’s stock worth $90,000 after purchasing an additional 88 shares during the last quarter. Blue Trust Inc. lifted its position in shares of Advanced Drainage Systems by 12.0% during the fourth quarter. Blue Trust Inc. now owns 1,005 shares of the construction company’s stock worth $116,000 after purchasing an additional 108 shares during the last quarter. US Bancorp DE lifted its position in shares of Advanced Drainage Systems by 5.7% during the first quarter. US Bancorp DE now owns 2,017 shares of the construction company’s stock worth $219,000 after purchasing an additional 109 shares during the last quarter. Bessemer Group Inc. lifted its position in shares of 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 purchasing an additional 115 shares during the last quarter. Finally, CIBC Asset Management Inc increased its stake in shares of Advanced Drainage Systems by 5.2% during the fourth quarter. CIBC Asset Management Inc now owns 2,390 shares of the construction company’s stock valued at $276,000 after buying an additional 119 shares during the period. 89.83% of the stock is currently owned by institutional investors.

Advanced Drainage Systems Stock Performance

The stock has a market cap of $9.44 billion, a PE ratio of 20.36, a price-to-earnings-growth ratio of 1.13 and a beta of 1.31. The company has a quick ratio of 1.98, a current ratio of 3.21 and a debt-to-equity ratio of 0.93. The firm 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.