Advanced Drainage Systems (NYSE:WMS) Reaches New 12-Month High – Time to Buy?

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS) hit a new 52-week high on Thursday . The company traded as high as $160.85 and last traded at $157.3980, with a volume of 44601 shares changing hands. The stock had previously closed at $157.15.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on WMS shares. Barclays boosted their price objective on shares of Advanced Drainage Systems from $181.00 to $187.00 and gave the stock an “overweight” rating in a research note on Thursday, January 15th. KeyCorp lifted their price objective on Advanced Drainage Systems from $159.00 to $170.00 and gave the stock an “overweight” rating in a research note on Friday, November 7th. Weiss Ratings restated a “hold (c)” rating on shares of Advanced Drainage Systems in a research note on Wednesday, October 8th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $176.00 price target on shares of Advanced Drainage Systems in a research report on Thursday, January 15th. Finally, Oppenheimer upped their price target on Advanced Drainage Systems from $175.00 to $180.00 and gave the stock an “outperform” rating in a report on Thursday, January 15th. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $164.22.

Advanced Drainage Systems Trading Down 0.6%

The company has a debt-to-equity ratio of 0.75, a quick ratio of 2.60 and a current ratio of 3.48. The business’s 50 day moving average price is $150.12 and its 200-day moving average price is $140.45. The company has a market cap of $12.15 billion, a price-to-earnings ratio of 26.63, a PEG ratio of 2.01 and a beta of 1.33.

Advanced Drainage Systems (NYSE:WMS) last announced its quarterly earnings results on Thursday, November 6th. The construction company reported $1.97 EPS for the quarter, topping analysts’ consensus estimates of $1.70 by $0.27. The firm had revenue of $850.38 million during the quarter, compared to analysts’ expectations of $802.49 million. Advanced Drainage Systems had a net margin of 15.35% and a return on equity of 28.85%. The company’s revenue for the quarter was up 8.7% compared to the same quarter last year. During the same quarter last year, the company earned $1.70 earnings per share. On average, research analysts forecast that Advanced Drainage Systems, Inc. will post 6.1 EPS for the current year.

Advanced Drainage Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 0.5%. The ex-dividend date was Monday, December 1st. Advanced Drainage Systems’s dividend payout ratio is currently 12.29%.

Insider Activity

In other news, Director Robert M. Eversole sold 10,569 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $152.82, for a total value of $1,615,154.58. Following the sale, the director owned 50,076 shares of the company’s stock, valued at approximately $7,652,614.32. This represents a 17.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Thomas J. Sr. Waun sold 1,000 shares of the stock in a transaction dated Wednesday, November 12th. The stock was sold at an average price of $150.00, for a total transaction of $150,000.00. Following the sale, the executive vice president owned 14,970 shares of the company’s stock, valued at $2,245,500. This trade represents a 6.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 97,772 shares of company stock worth $14,605,539 over the last 90 days. 1.63% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Mather Group LLC. acquired a new stake in Advanced Drainage Systems during the 3rd quarter valued at $28,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Advanced Drainage Systems by 352.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 226 shares of the construction company’s stock valued at $26,000 after buying an additional 176 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC bought a new position in shares of Advanced Drainage Systems in the third quarter valued at about $33,000. Cullen Frost Bankers Inc. lifted its position in Advanced Drainage Systems by 1,242.1% during the 3rd quarter. Cullen Frost Bankers Inc. now owns 255 shares of the construction company’s stock worth $35,000 after buying an additional 236 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new stake in Advanced Drainage Systems during the 3rd quarter worth about $36,000. 89.83% of the stock is owned by institutional investors and hedge funds.

Advanced Drainage Systems Company Profile

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.