Advanced Drainage Systems (NYSE:WMS) Stock Breaks Above Fifty Day Moving Average – Should You Sell?

by · The Markets Daily

Advanced Drainage Systems, Inc. (NYSE:WMS – Get Free Report) passed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $130.97 and traded as high as $136.85. Advanced Drainage Systems shares last traded at $136.76, with a volume of 610,076 shares.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on WMS. Zacks Research upgraded Advanced Drainage Systems from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. National Bank Financial set a $190.00 price target on shares of Advanced Drainage Systems in a research note on Monday, August 24th. Robert W. Baird set a $206.00 price objective on shares of Advanced Drainage Systems in a research report on Friday, August 7th. UBS Group raised their price objective on shares of Advanced Drainage Systems from $205.00 to $207.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Finally, Oppenheimer reduced their price objective on shares of Advanced Drainage Systems from $190.00 to $185.00 and set an “outperform” rating for the company in a research note on Friday, October 9th. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $187.40.

Read Our Latest Stock Report on Advanced Drainage Systems

Advanced Drainage Systems Trading Down 0.8%

The firm has a market capitalization of $10.21 billion, a PE ratio of 23.39, a P/E/G ratio of 1.57 and a beta of 1.29. The firm has a 50 day simple moving average of $130.83 and a 200 day simple moving average of $143.70. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95.

Advanced Drainage Systems (NYSE:WMS – Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The construction company reported $2.49 earnings per share for the quarter, topping the consensus estimate of $2.10 by $0.39. Advanced Drainage Systems had a return on equity of 28.28% and a net margin of 14.00%. The firm had revenue of $1 billion during the quarter, compared to analysts’ expectations of $991.39 million. During the same quarter in the previous year, the business earned $1.95 earnings per share. The company’s revenue was up 20.6% on a year-over-year basis. Equities analysts expect that Advanced Drainage Systems, Inc. will post 6.57 earnings per share for the current fiscal year.

Advanced Drainage Systems Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were given a $0.20 dividend. The ex-dividend date of this dividend was Tuesday, September 1st. This represents a $0.80 dividend on an annualized basis and a yield of 0.6%. Advanced Drainage Systems’s payout ratio is 13.82%.

Institutional Trading of Advanced Drainage Systems

Institutional investors have recently made changes to their positions in the stock. Allworth Financial LP purchased a new stake in shares of Advanced Drainage Systems in the second quarter worth $26,000. Avalon Trust Co bought a new stake in shares of Advanced Drainage Systems during the 2nd quarter valued at $42,000. Vega Investment Solutions purchased a new position in shares of Advanced Drainage Systems during the 2nd quarter valued at $50,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Advanced Drainage Systems during the 2nd quarter valued at $55,000. Finally, Bessemer Group Inc. lifted its stake in shares of Advanced Drainage Systems by 70.3% during the 1st quarter. Bessemer Group Inc. now owns 395 shares of the construction company’s stock valued at $54,000 after buying an additional 163 shares in the last quarter. Hedge funds and other institutional investors own 89.83% of the company’s stock.

Advanced Drainage Systems Company Profile

(Get Free Report)

Advanced Drainage Systems, Inc (NYSE: WMS) is a manufacturer of water management products and solutions. The company produces thermoplastic corrugated pipe, fittings, drainage structures, stormwater chambers and related products used to manage the collection, conveyance, storage and treatment of water.

Its products serve a range of markets, including residential, commercial, agricultural, infrastructure and environmental applications. Advanced Drainage Systems supplies solutions for stormwater management, septic and wastewater systems, highway and road construction, land development, agriculture and erosion control.

Founded in 1966 and headquartered in Hilliard, Ohio, the company serves customers through a manufacturing and distribution network primarily covering the United States and Canada, with additional international operations.

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