Advanced Drainage Systems (NYSE:WMS) Shares Gap Up After Dividend Announcement

Shares of Advanced Drainage Systems, Inc. (NYSE:WMS) gapped up before the market opened on Thursday after the company announced a dividend. The stock had previously closed at $116.01, but opened at $122.12. Advanced Drainage Systems shares last traded at $113.84, with a volume of 49,014 shares trading hands.

The newly announced dividend which will be paid on Friday, March 14th. Shareholders of record on Friday, February 28th will be paid a dividend of $0.16 per share. The ex-dividend date of this dividend is Friday, February 28th. This represents a $0.64 annualized dividend and a yield of 0.53%. Advanced Drainage Systems’s dividend payout ratio is currently 10.70%.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on WMS. Stephens reissued an “equal weight” rating and issued a $135.00 target price on shares of Advanced Drainage Systems in a research note on Friday. Loop Capital cut their price objective on Advanced Drainage Systems from $170.00 to $160.00 and set a “buy” rating on the stock in a research report on Friday. KeyCorp decreased their target price on Advanced Drainage Systems from $195.00 to $180.00 and set an “overweight” rating for the company in a research report on Monday, November 11th. Oppenheimer lowered their target price on Advanced Drainage Systems from $192.00 to $184.00 and set an “outperform” rating for the company in a research note on Monday, November 11th. Finally, UBS Group raised Advanced Drainage Systems from a “neutral” rating to a “buy” rating and set a $155.00 price target on the stock in a research report on Wednesday, January 8th. Two investment analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to MarketBeat, Advanced Drainage Systems currently has an average rating of “Moderate Buy” and an average target price of $164.25.

Advanced Drainage Systems Stock Performance

The firm has a market cap of $9.33 billion, a price-to-earnings ratio of 19.17, a PEG ratio of 1.16 and a beta of 1.52. The company has a quick ratio of 2.15, a current ratio of 3.19 and a debt-to-equity ratio of 0.97. The company has a 50 day moving average of $121.34 and a 200 day moving average of $140.35.

Advanced Drainage Systems (NYSE:WMS) last announced its earnings results on Thursday, February 6th. The construction company reported $1.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.34 by ($0.25). Advanced Drainage Systems had a net margin of 16.89% and a return on equity of 40.31%. As a group, equities research analysts expect that Advanced Drainage Systems, Inc. will post 6.12 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Impax Asset Management Group plc increased its position in shares of Advanced Drainage Systems by 34.6% in the 4th quarter. Impax Asset Management Group plc now owns 2,530,000 shares of the construction company’s stock worth $291,723,000 after purchasing an additional 650,052 shares during the last quarter. Amundi increased its holdings in Advanced Drainage Systems by 72.2% in the fourth quarter. Amundi now owns 854,764 shares of the construction company’s stock valued at $98,678,000 after buying an additional 358,271 shares during the last quarter. State Street Corp raised its stake in Advanced Drainage Systems by 8.8% during the third quarter. State Street Corp now owns 2,541,688 shares of the construction company’s stock valued at $399,452,000 after buying an additional 206,105 shares in the last quarter. Fernbridge Capital Management LP raised its stake in Advanced Drainage Systems by 108.2% during the third quarter. Fernbridge Capital Management LP now owns 253,549 shares of the construction company’s stock valued at $39,848,000 after buying an additional 131,781 shares in the last quarter. Finally, KBC Group NV lifted its holdings in Advanced Drainage Systems by 21.2% during the 4th quarter. KBC Group NV now owns 738,749 shares of the construction company’s stock worth $85,399,000 after buying an additional 129,252 shares during the last quarter. 89.83% of the stock is currently owned by institutional investors.

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.