Hill City Capital LP Makes New $75.34 Billion Investment in Advanced Drainage Systems, Inc. $WMS

Hill City Capital LP acquired a new stake in Advanced Drainage Systems, Inc. (NYSE:WMS) in the second quarter, HoldingsChannel.com reports. The firm acquired 480,000 shares of the construction company’s stock, valued at approximately $75,340,800,000. Advanced Drainage Systems makes up about 1.8% of Hill City Capital LP’s investment portfolio, making the stock its 14th largest position.

Other large investors have also modified their holdings of the company. Allworth Financial LP purchased a new position in shares of Advanced Drainage Systems during the second quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. raised its position in Advanced Drainage Systems by 352.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 226 shares of the construction company’s stock valued at $26,000 after purchasing an additional 176 shares during the last quarter. SJS Investment Consulting Inc. raised its position in Advanced Drainage Systems by 78.1% in the 1st quarter. SJS Investment Consulting Inc. now owns 244 shares of the construction company’s stock valued at $33,000 after purchasing an additional 107 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in Advanced Drainage Systems during the 3rd quarter worth $36,000. Finally, Kestra Advisory Services LLC acquired a new stake in Advanced Drainage Systems during the 4th quarter worth $37,000. 89.83% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. UBS Group lifted 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. DA Davidson assumed coverage on shares of Advanced Drainage Systems in a research note on Tuesday. They set a “buy” rating and a $190.00 target price for the company. Zacks Research raised Advanced Drainage Systems from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. KeyCorp restated an “overweight” rating on shares of Advanced Drainage Systems in a research report on Monday, June 22nd. Finally, Oppenheimer reduced their price objective on Advanced Drainage Systems from $195.00 to $190.00 and set an “outperform” rating for the company in a research note on Tuesday, May 26th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $188.70.

Advanced Drainage Systems Stock Performance

NYSE:WMS opened at $139.16 on Friday. The company has a debt-to-equity ratio of 0.95, a current ratio of 2.12 and a quick ratio of 1.18. The firm has a market cap of $10.49 billion, a price-to-earnings ratio of 24.03, a price-to-earnings-growth ratio of 1.55 and a beta of 1.27. The firm’s fifty day moving average price is $146.19 and its 200 day moving average price is $146.54. Advanced Drainage Systems, Inc. has a 1-year low of $128.03 and a 1-year high of $179.32.

Advanced Drainage Systems (NYSE:WMS) last announced its quarterly earnings data on Thursday, August 6th. The construction company reported $2.49 EPS for the quarter, topping analysts’ consensus estimates of $2.10 by $0.39. Advanced Drainage Systems had a net margin of 14.00% and a return on equity of 28.28%. The company had revenue of $1 billion during the quarter, compared to the consensus estimate of $991.39 million. During the same quarter in the prior year, the firm earned $1.95 EPS. Advanced Drainage Systems’s quarterly revenue was up 20.6% on a year-over-year basis. On average, sell-side analysts expect that Advanced Drainage Systems, Inc. will post 6.62 EPS for the current year.

Advanced Drainage Systems Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Tuesday, September 1st. Advanced Drainage Systems’s payout ratio is 13.82%.

Advanced Drainage Systems Profile

Advanced Drainage Systems, Inc (NYSE: WMS) is a leading manufacturer and supplier of water management solutions in North America. Headquartered in Hilliard, Ohio, the company specializes in the design, production and distribution of high-density polyethylene (HDPE) drainage pipe and related products. Its core business addresses stormwater management, on-site septic systems and erosion control for residential, commercial and infrastructure projects.

The company’s product portfolio includes corrugated plastic pipe, tubing, fittings, geocells, geogrids and stormwater structures such as inlets, manholes and detention/retention systems.