Advanced Drainage Systems (WMS) Stock Rating Lowered by Zacks Investment Research

Advanced Drainage Systems (NYSE:WMS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Friday.

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. “

A number of other research firms also recently weighed in on WMS. ValuEngine downgraded shares of Advanced Drainage Systems from a “buy” rating to a “hold” rating in a research note on Monday, November 12th. Robert W. Baird reaffirmed a “buy” rating and issued a $35.00 price target on shares of Advanced Drainage Systems in a research note on Friday, August 10th. Boenning Scattergood reaffirmed a “hold” rating on shares of Advanced Drainage Systems in a research note on Thursday, August 9th. Citigroup dropped their price target on shares of Advanced Drainage Systems from $35.00 to $30.00 and set a “hold” rating on the stock in a research note on Monday, November 12th. Finally, Barclays upped their price target on shares of Advanced Drainage Systems from $29.00 to $30.00 and gave the stock an “equal weight” rating in a research note on Monday, August 13th. One research analyst has rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $32.00.

NYSE WMS opened at $26.03 on Friday. Advanced Drainage Systems has a 1-year low of $21.70 and a 1-year high of $33.50. The company has a debt-to-equity ratio of 1.54, a quick ratio of 1.19 and a current ratio of 2.31. The firm has a market capitalization of $1.50 billion, a PE ratio of 32.14 and a beta of 1.02.

Advanced Drainage Systems (NYSE:WMS) last posted its quarterly earnings results on Thursday, November 8th. The construction company reported $0.45 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.44 by $0.01. Advanced Drainage Systems had a net margin of 6.20% and a return on equity of 46.15%. The business had revenue of $406.56 million for the quarter, compared to the consensus estimate of $417.03 million. During the same period in the prior year, the business posted $0.29 earnings per share. Advanced Drainage Systems’s revenue for the quarter was up 1.4% compared to the same quarter last year. On average, sell-side analysts predict that Advanced Drainage Systems will post 1.07 EPS for the current year.

In other Advanced Drainage Systems news, major shareholder Berkshire Partners Holdings Ll acquired 1,500,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 28th. The stock was purchased at an average cost of $30.08 per share, for a total transaction of $45,120,000.00. Following the completion of the acquisition, the insider now owns 745,556 shares of the company’s stock, valued at approximately $22,426,324.48. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 20.97% of the company’s stock.

A number of large investors have recently modified their holdings of the stock. SG Americas Securities LLC bought a new stake in Advanced Drainage Systems during the second quarter valued at about $101,000. Tower Research Capital LLC TRC boosted its holdings in Advanced Drainage Systems by 5,933.3% during the third quarter. Tower Research Capital LLC TRC now owns 4,344 shares of the construction company’s stock valued at $134,000 after acquiring an additional 4,272 shares during the period. Janney Montgomery Scott LLC bought a new stake in Advanced Drainage Systems during the third quarter valued at about $209,000. Trexquant Investment LP bought a new stake in Advanced Drainage Systems during the third quarter valued at about $226,000. Finally, State Board of Administration of Florida Retirement System bought a new stake in Advanced Drainage Systems during the third quarter valued at about $250,000. Hedge funds and other institutional investors own 76.70% of the company’s stock.

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.

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