Advanced Drainage Systems (WMS) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Advanced Drainage Systems (NYSE:WMS) from a hold rating to a sell rating in a report issued on Friday morning.

According to Zacks, “Advanced Drainage Systems, Inc. is a manufacturer of thermoplastic corrugated pipe, providing a comprehensive suite of water management products and drainage solutions for use in the construction and infrastructure marketplace. The company provides single, double, and triple wall corrugated polypropylene and polyethylene pipes; and allied products comprising PVC drainage structures, fittings and filters, and water quality filters and separators. Its products are used across a broad range of end markets and applications, including non-residential, residential, agriculture and infrastructure applications. Advanced Drainage Systems, Inc. is headquartered in Hilliard, Ohio. “

Other equities analysts also recently issued reports about the stock. Boenning Scattergood reaffirmed a hold rating on shares of Advanced Drainage Systems in a report on Thursday, August 9th. Robert W. Baird reaffirmed a buy rating and set a $35.00 price objective on shares of Advanced Drainage Systems in a report on Friday, August 10th. ValuEngine downgraded shares of Advanced Drainage Systems from a buy rating to a hold rating in a report on Monday, November 12th. Citigroup reduced their price objective on shares of Advanced Drainage Systems from $35.00 to $30.00 and set a hold rating for the company in a report on Monday, November 12th. Finally, Barclays raised their price objective on shares of Advanced Drainage Systems from $29.00 to $30.00 and gave the stock an equal weight rating in a report on Monday, August 13th. One research analyst has rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the company. Advanced Drainage Systems has an average rating of Hold and an average price target of $32.00.

Advanced Drainage Systems stock traded down $0.03 during mid-day trading on Friday, reaching $25.75. The company had a trading volume of 136,339 shares, compared to its average volume of 174,809. The company has a debt-to-equity ratio of 1.54, a current ratio of 2.31 and a quick ratio of 1.19. Advanced Drainage Systems has a 52 week low of $21.70 and a 52 week high of $33.50. The company has a market cap of $1.47 billion, a PE ratio of 31.79 and a beta of 1.01.

Advanced Drainage Systems (NYSE:WMS) last issued its quarterly earnings results on Thursday, November 8th. The construction company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates of $0.44 by $0.01. The firm had revenue of $406.56 million during the quarter, compared to the consensus estimate of $417.03 million. Advanced Drainage Systems had a net margin of 6.20% and a return on equity of 46.15%. The business’s revenue was up 1.4% on a year-over-year basis. During the same period in the prior year, the firm earned $0.29 EPS. Analysts expect that Advanced Drainage Systems will post 1.07 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 14th. Stockholders of record on Friday, November 30th will be issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.24%. The ex-dividend date of this dividend is Thursday, November 29th. Advanced Drainage Systems’s payout ratio is 39.51%.

Several large investors have recently added to or reduced their stakes in WMS. Vanguard Group Inc. increased its position in shares of Advanced Drainage Systems by 6.3% during the 3rd quarter. Vanguard Group Inc. now owns 3,493,825 shares of the construction company’s stock worth $107,959,000 after purchasing an additional 206,839 shares in the last quarter. BlackRock Inc. increased its position in shares of Advanced Drainage Systems by 30.4% during the 2nd quarter. BlackRock Inc. now owns 3,099,765 shares of the construction company’s stock worth $88,498,000 after purchasing an additional 723,150 shares in the last quarter. JPMorgan Chase & Co. increased its position in shares of Advanced Drainage Systems by 12.7% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,943,128 shares of the construction company’s stock worth $60,041,000 after purchasing an additional 219,049 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Advanced Drainage Systems by 7.9% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,089,129 shares of the construction company’s stock worth $33,656,000 after purchasing an additional 79,569 shares in the last quarter. Finally, Northern Trust Corp increased its position in shares of Advanced Drainage Systems by 19.0% during the 2nd quarter. Northern Trust Corp now owns 556,109 shares of the construction company’s stock worth $15,877,000 after purchasing an additional 88,616 shares in the last quarter. 79.71% of the stock is owned by institutional investors.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in the United States and internationally. The company offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators.

Further Reading: Quiet Period

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