Advanced Drainage Systems (WMS) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Advanced Drainage Systems (NYSE:WMS) from a buy rating to a hold rating in a research note published on Tuesday.

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. “

Several other research firms have also recently commented on WMS. Barclays upped their target price on shares of Advanced Drainage Systems from $29.00 to $30.00 and gave the company an equal weight rating in a research note on Monday, August 13th. Boenning Scattergood reiterated a hold rating on shares of Advanced Drainage Systems in a research note on Thursday, August 9th. Robert W. Baird reiterated a buy rating and set a $35.00 target price on shares of Advanced Drainage Systems in a research note on Friday, August 10th. Finally, Citigroup upped their target price on shares of Advanced Drainage Systems from $29.00 to $30.00 and gave the company a neutral rating in a research note on Monday, July 23rd. Four equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. The stock presently has a consensus rating of Hold and an average target price of $32.25.

NYSE WMS opened at $28.99 on Tuesday. The company has a quick ratio of 1.10, a current ratio of 2.22 and a debt-to-equity ratio of 1.99. The firm has a market cap of $1.76 billion, a P/E ratio of 35.79 and a beta of 0.94. Advanced Drainage Systems has a 1 year low of $17.90 and a 1 year high of $33.50.

Advanced Drainage Systems (NYSE:WMS) last released its earnings results on Thursday, August 9th. The construction company reported $0.51 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.40 by $0.11. The firm had revenue of $387.85 million during the quarter, compared to analysts’ expectations of $382.67 million. Advanced Drainage Systems had a net margin of 5.43% and a return on equity of 47.60%. The business’s quarterly revenue was up 8.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.28 EPS. On average, equities research analysts expect that Advanced Drainage Systems will post 1.1 earnings per share for the current year.

In other news, SVP Ewout Leeuwenburg sold 30,000 shares of the stock in a transaction on Thursday, August 16th. The shares were sold at an average price of $31.42, for a total value of $942,600.00. Following the completion of the transaction, the senior vice president now owns 73,062 shares in the company, valued at approximately $2,295,608.04. The sale was disclosed in a filing with the SEC, which is available at this link. Also, major shareholder Berkshire Partners Holdings Ll acquired 1,500,000 shares of the company’s stock in a transaction dated Tuesday, August 28th. The stock was acquired at an average price of $30.08 per share, with a total value of $45,120,000.00. Following the purchase, the insider now owns 745,556 shares in the company, valued at approximately $22,426,324.48. The disclosure for this purchase can be found here. 20.97% of the stock is owned by corporate insiders.

Several hedge funds have recently made changes to their positions in the company. SG Americas Securities LLC bought a new stake in shares of Advanced Drainage Systems in the 2nd quarter worth about $101,000. Hsbc Holdings PLC bought a new stake in shares of Advanced Drainage Systems in the 1st quarter worth about $207,000. Valeo Financial Advisors LLC bought a new stake in shares of Advanced Drainage Systems in the 2nd quarter worth about $338,000. Manchester Capital Management LLC grew its holdings in shares of Advanced Drainage Systems by 84.3% in the 2nd quarter. Manchester Capital Management LLC now owns 12,570 shares of the construction company’s stock worth $359,000 after purchasing an additional 5,750 shares during the last quarter. Finally, Global X Management Co LLC grew its holdings in shares of Advanced Drainage Systems by 19.1% in the 2nd quarter. Global X Management Co LLC now owns 14,260 shares of the construction company’s stock worth $407,000 after purchasing an additional 2,284 shares during the last quarter. Institutional investors own 78.10% of the company’s stock.

Advanced Drainage Systems Company Profile

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.

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