Advanced Drainage Systems (NYSE:WMS) Shares Up 7.8% Following Better-Than-Expected Earnings

Advanced Drainage Systems, Inc. (NYSE:WMS) was up 7.8% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $173.07 and last traded at $172.7380. Approximately 623,397 shares changed hands during mid-day trading, a decline of 11% from the average daily volume of 696,708 shares. The stock had previously closed at $160.26.

The construction company reported $1.27 EPS for the quarter, beating the consensus estimate of $1.11 by $0.16. Advanced Drainage Systems had a net margin of 15.35% and a return on equity of 28.85%. The business had revenue of $693.35 million during the quarter, compared to the consensus estimate of $686.37 million. During the same period in the previous year, the business earned $1.09 earnings per share. The company’s revenue was up .4% on a year-over-year basis.

Analyst Ratings Changes

Several brokerages recently commented on WMS. Barclays increased their price objective on shares of Advanced Drainage Systems from $181.00 to $187.00 and gave the company an “overweight” rating in a research note on Thursday, January 15th. Weiss Ratings reissued a “hold (c)” rating on shares of Advanced Drainage Systems in a report on Wednesday, January 21st. KeyCorp boosted their price objective on Advanced Drainage Systems from $170.00 to $180.00 and gave the stock an “overweight” rating in a research report on Monday, January 26th. UBS Group increased their target price on Advanced Drainage Systems from $183.00 to $197.00 and gave the company a “buy” rating in a research report on Tuesday, January 6th. Finally, Oppenheimer lifted their price target on Advanced Drainage Systems from $175.00 to $180.00 and gave the company an “outperform” rating in a research note on Thursday, January 15th. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $165.33.

Insider Activity

In other news, insider Tim A. Makowski sold 4,901 shares of Advanced Drainage Systems stock in a transaction dated Wednesday, November 12th. The stock was sold at an average price of $149.21, for a total value of $731,278.21. Following the completion of the transaction, the insider directly owned 2,467 shares of the company’s stock, valued at approximately $368,101.07. This trade represents a 66.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, 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 in the company, valued at approximately $7,652,614.32. The trade was a 17.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 97,772 shares of company stock valued at $14,605,539. 1.63% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Advanced Drainage Systems

Several institutional investors have recently added to or reduced their stakes in WMS. Impax Asset Management Group plc lifted its position in shares of Advanced Drainage Systems by 4.8% during the 2nd quarter. Impax Asset Management Group plc now owns 3,043,909 shares of the construction company’s stock valued at $348,709,000 after acquiring an additional 139,495 shares during the period. State Street Corp grew its holdings in Advanced Drainage Systems by 3.1% in the third quarter. State Street Corp now owns 2,551,901 shares of the construction company’s stock worth $353,949,000 after purchasing an additional 75,777 shares during the period. First Trust Advisors LP increased its stake in Advanced Drainage Systems by 10.9% in the third quarter. First Trust Advisors LP now owns 2,416,942 shares of the construction company’s stock valued at $335,230,000 after purchasing an additional 238,179 shares in the last quarter. American Century Companies Inc. raised its holdings in shares of Advanced Drainage Systems by 6.5% during the third quarter. American Century Companies Inc. now owns 1,472,176 shares of the construction company’s stock valued at $204,191,000 after purchasing an additional 90,106 shares during the period. Finally, Wellington Management Group LLP boosted its position in shares of Advanced Drainage Systems by 234.0% during the 3rd quarter. Wellington Management Group LLP now owns 1,188,906 shares of the construction company’s stock worth $164,901,000 after purchasing an additional 832,929 shares in the last quarter. 89.83% of the stock is owned by institutional investors and hedge funds.

Advanced Drainage Systems Stock Performance

The company has a market capitalization of $13.34 billion, a price-to-earnings ratio of 29.24, a P/E/G ratio of 2.03 and a beta of 1.34. The company has a 50 day moving average price of $151.81 and a 200 day moving average price of $143.12. The company has a debt-to-equity ratio of 0.75, a quick ratio of 2.60 and a current ratio of 3.48.

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.