Advanced Drainage Systems (NYSE:WMS) Hits New 52-Week High – Still a Buy?

Advanced Drainage Systems, Inc. (NYSE:WMS) shares reached a new 52-week high on Monday . The stock traded as high as $156.69 and last traded at $154.0650, with a volume of 85128 shares trading hands. The stock had previously closed at $149.63.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on WMS shares. KeyCorp upped their price objective on shares of Advanced Drainage Systems from $159.00 to $170.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. Barclays lifted their price target on shares of Advanced Drainage Systems from $176.00 to $181.00 and gave the company an “overweight” rating in a report on Monday, December 8th. Weiss Ratings reiterated a “hold (c)” rating on shares of Advanced Drainage Systems in a research note on Wednesday, October 8th. Finally, Royal Bank Of Canada lifted their price objective on Advanced Drainage Systems from $158.00 to $168.00 and gave the company an “outperform” rating in a research report on Friday, November 7th. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $157.11.

Advanced Drainage Systems Trading Up 1.7%

The stock has a market cap of $11.83 billion, a P/E ratio of 25.96, a PEG ratio of 1.94 and a beta of 1.33. The company has a quick ratio of 2.60, a current ratio of 3.48 and a debt-to-equity ratio of 0.75. The business’s 50 day simple moving average is $146.74 and its two-hundred day simple moving average is $137.07.

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, beating analysts’ consensus estimates of $1.70 by $0.27. Advanced Drainage Systems had a return on equity of 28.85% and a net margin of 15.35%.The firm had revenue of $850.38 million for the quarter, compared to analyst estimates of $802.49 million. During the same period last year, the firm posted $1.70 earnings per share. The business’s revenue for the quarter was up 8.7% on a year-over-year basis. As a group, analysts expect that Advanced Drainage Systems, Inc. will post 6.1 EPS for the current year.

Advanced Drainage Systems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were given a $0.18 dividend. The ex-dividend date was Monday, December 1st. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.5%. Advanced Drainage Systems’s payout ratio is 12.29%.

Insider Activity

In other Advanced Drainage Systems news, insider D. Scott Barbour sold 80,030 shares of the stock in a transaction that occurred on Wednesday, November 12th. The stock was sold at an average price of $148.95, for a total transaction of $11,920,468.50. Following the transaction, the insider directly owned 42,867 shares in the company, valued at approximately $6,385,039.65. This represents a 65.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Robert M. Eversole sold 10,569 shares of Advanced Drainage Systems stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $152.82, for a total transaction of $1,615,154.58. Following the completion of the sale, the director owned 50,076 shares of the company’s stock, valued at $7,652,614.32. This represents a 17.43% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 97,772 shares of company stock worth $14,605,539 in the last three months. Corporate insiders own 1.63% of the company’s stock.

Institutional Investors Weigh In On Advanced Drainage Systems

Several hedge funds and other institutional investors have recently bought and sold shares of WMS. Valeo Financial Advisors LLC raised its holdings in shares of Advanced Drainage Systems by 134.8% in the 2nd quarter. Valeo Financial Advisors LLC now owns 5,275 shares of the construction company’s stock worth $606,000 after purchasing an additional 3,028 shares during the period. Fiduciary Alliance LLC purchased a new position in shares of Advanced Drainage Systems during the 2nd quarter valued at $203,000. Fisher Asset Management LLC grew its stake in shares of Advanced Drainage Systems by 47.5% during the 2nd quarter. Fisher Asset Management LLC now owns 40,651 shares of the construction company’s stock worth $4,669,000 after acquiring an additional 13,097 shares during the period. Truist Financial Corp bought a new position in shares of Advanced Drainage Systems during the 2nd quarter worth $211,000. Finally, Pacer Advisors Inc. purchased a new stake in Advanced Drainage Systems in the 3rd quarter worth about $1,321,000. 89.83% of the stock is owned by institutional investors.

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.