Advanced Drainage Systems (NYSE:WMS) Shares Down 8.5% Following Weak Earnings

Advanced Drainage Systems, Inc. (NYSE:WMS)’s stock price fell 8.5% during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $141.74 and last traded at $145.44. 134,266 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 483,529 shares. The stock had previously closed at $159.00.

The construction company reported $1.70 earnings per share for the quarter, missing analysts’ consensus estimates of $1.93 by ($0.23). The firm had revenue of $782.60 million for the quarter, compared to analyst estimates of $819.41 million. Advanced Drainage Systems had a return on equity of 43.60% and a net margin of 17.09%. Advanced Drainage Systems’s quarterly revenue was up .3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.71 earnings per share.

Advanced Drainage Systems Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be issued a $0.16 dividend. The ex-dividend date is Monday, December 2nd. This represents a $0.64 dividend on an annualized basis and a dividend yield of 0.47%. Advanced Drainage Systems’s payout ratio is 10.13%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on WMS. Oppenheimer reissued an “outperform” rating and set a $192.00 price target on shares of Advanced Drainage Systems in a research report on Thursday, August 15th. StockNews.com lowered Advanced Drainage Systems from a “buy” rating to a “hold” rating in a report on Wednesday, July 17th. Loop Capital dropped their price target on Advanced Drainage Systems from $188.00 to $180.00 and set a “buy” rating on the stock in a research note on Monday, August 12th. Barclays reduced their price objective on shares of Advanced Drainage Systems from $202.00 to $194.00 and set an “overweight” rating for the company in a research report on Friday, August 9th. Finally, Robert W. Baird decreased their price objective on shares of Advanced Drainage Systems from $200.00 to $187.00 and set an “outperform” rating on the stock in a report on Friday, August 9th. One investment analyst has rated the stock with a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $190.14.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Swedbank AB acquired a new stake in shares of Advanced Drainage Systems in the first quarter valued at approximately $220,853,000. Vanguard Group Inc. increased its stake in Advanced Drainage Systems by 5.8% during the 1st quarter. Vanguard Group Inc. now owns 7,265,169 shares of the construction company’s stock worth $1,251,353,000 after acquiring an additional 395,099 shares during the period. Boston Partners raised its holdings in Advanced Drainage Systems by 16.9% in the 1st quarter. Boston Partners now owns 1,519,118 shares of the construction company’s stock valued at $261,609,000 after acquiring an additional 219,629 shares in the last quarter. Millennium Management LLC lifted its position in shares of Advanced Drainage Systems by 136.2% during the 2nd quarter. Millennium Management LLC now owns 312,393 shares of the construction company’s stock valued at $50,105,000 after acquiring an additional 180,154 shares during the period. Finally, Lazard Freres Gestion S.A.S. acquired a new stake in shares of Advanced Drainage Systems during the 2nd quarter worth $28,870,000. Institutional investors own 89.83% of the company’s stock.

Advanced Drainage Systems Stock Down 14.4 %

The company has a market cap of $10.56 billion, a P/E ratio of 21.54, a PEG ratio of 1.38 and a beta of 1.53. The stock has a 50-day moving average of $151.62 and a 200 day moving average of $159.76. The company has a debt-to-equity ratio of 1.04, a current ratio of 2.89 and a quick ratio of 1.90.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc designs, manufactures, and markets thermoplastic corrugated pipes and related water management products in North America and internationally. The company operates through Pipe, International, Infiltrator, and Allied Products & Other segments. It offers single, double, and triple wall corrugated polypropylene and polyethylene pipes; plastic leachfield chambers and systems; EZflow synthetic aggregate bundles; wastewater purification through mechanical aeration wastewater for residential and commercial systems; septic tanks and accessories; combined treatment and dispersal systems, including advanced enviro-septic and advanced treatment leachfield systems; and allied products, including storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators.