Royal Bank Of Canada Has Lowered Expectations for Advanced Drainage Systems (NYSE:WMS) Stock Price

by · The Markets Daily

Advanced Drainage Systems (NYSE:WMS – Get Free Report) had its target price cut by research analysts at Royal Bank Of Canada from $170.00 to $163.00 in a note issued to investors on Friday, Benzinga reports. The firm presently has an “outperform” rating on the construction company’s stock. Royal Bank Of Canada‘s target price points to a potential upside of 31.91% from the company’s current price.

Several other equities research analysts also recently commented on the stock. Oppenheimer restated an “outperform” rating and issued a $180.00 target price (down from $185.00) on shares of Advanced Drainage Systems in a report on Friday. Robert W. Baird set a $206.00 price target on Advanced Drainage Systems in a research note on Friday, August 7th. Stephens reiterated an “overweight” rating and set a $175.00 price target on shares of Advanced Drainage Systems in a research note on Monday, September 21st. Zacks Research raised Advanced Drainage Systems from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. Finally, DA Davidson set a $180.00 price objective on Advanced Drainage Systems in a research note on Friday. Eight equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Advanced Drainage Systems currently has an average rating of “Moderate Buy” and a consensus price target of $184.40.

Check Out Our Latest Stock Analysis on WMS

Advanced Drainage Systems Stock Up 0.8%

WMS stock traded up $0.94 during trading on Friday, reaching $123.56. 394,323 shares of the stock were exchanged, compared to its average volume of 823,226. The firm’s 50 day moving average is $130.34 and its 200 day moving average is $143.25. Advanced Drainage Systems has a twelve month low of $119.53 and a twelve month high of $179.32. The company has a current ratio of 2.12, a quick ratio of 1.18 and a debt-to-equity ratio of 0.95. The firm has a market cap of $9.32 billion, a P/E ratio of 21.34, a price-to-earnings-growth ratio of 1.65 and a beta of 1.30.

Advanced Drainage Systems (NYSE:WMS – Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The construction company reported $1.88 earnings per share for the quarter, topping the consensus estimate of $1.81 by $0.07. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The firm had revenue of $889.41 million for the quarter, compared to the consensus estimate of $921.79 million. During the same quarter in the prior year, the company posted $1.97 earnings per share. The business’s revenue was up 4.6% on a year-over-year basis. As a group, research analysts forecast that Advanced Drainage Systems will post 6.57 EPS for the current year.

Institutional Trading of Advanced Drainage Systems

Institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of Advanced Drainage Systems during the 2nd quarter worth $1,172,482,000. Pictet Asset Management Holding SA boosted its holdings in shares of Advanced Drainage Systems by 33.4% in the 3rd quarter. Pictet Asset Management Holding SA now owns 1,505,017 shares of the construction company’s stock worth $190,712,000 after buying an additional 377,043 shares during the last quarter. Amundi boosted its holdings in shares of Advanced Drainage Systems by 5.1% in the 2nd quarter. Amundi now owns 1,354,610 shares of the construction company’s stock worth $212,681,000 after buying an additional 65,938 shares during the last quarter. KBC Group NV grew its position in Advanced Drainage Systems by 1.7% during the first quarter. KBC Group NV now owns 916,981 shares of the construction company’s stock valued at $125,746,000 after buying an additional 14,915 shares during the period. Finally, Bamco Inc. NY bought a new position in Advanced Drainage Systems during the second quarter valued at about $106,800,000. 89.83% of the stock is owned by hedge funds and other institutional investors.

Advanced Drainage Systems News Roundup

Here are the key news stories impacting Advanced Drainage Systems this week:

  • Positive Sentiment: Barclays lowered its price target to $183 from $191 but kept its “overweight” rating. The new target still indicates substantial upside from the price cited in the report. Tickerreport article
  • Neutral Sentiment: ADS declared a quarterly dividend of $0.20 per share, payable December 15 to shareholders of record December 1. The annualized dividend is $0.80, a yield of about 0.6%. Dividend details
  • Negative Sentiment: Fiscal Q2 revenue was $889.4 million, below analysts’ $921.8 million estimate. EPS was $1.88: above the $1.81 consensus cited in one report, but just below Zacks’ $1.89 estimate and down from $1.97 a year earlier. Earnings coverage
  • Negative Sentiment: Coverage also flagged a guidance cut, adding to concerns raised by the revenue miss and contributing to the negative reaction to the results. Guidance coverage

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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