Barclays PLC Increases Stake in Advanced Drainage Systems, Inc.
In a recently filed report with the Securities and Exchange Commission, Barclays PLC disclosed that it has boosted its stake in Advanced Drainage Systems, Inc. (NYSE:WMS) by 126.1%, during the fourth quarter of this year. The financial giant now owns 94,420 shares of the construction company’s stock which is worth a staggering $7,740,000 after acquiring an additional 52,661 shares during the same period.
This move comes as feeling amongst investors and industry insiders suggests that drain systems will become increasingly important to society as climate change continues to alter weather patterns and cause flooding. There are concerns about drainage infrastructure being overwhelmed due to torrential rain and potential failure and subsequent damage to surrounding communities.
Despite this growth market prospect and Barclays’ enthusiasm towards it, Executive Vice President Darin S. Harvey sold 7,000 shares of Advanced Drainage Systems’ stock at an average price of $102.65 per share on June 5th – just ten days before a quarterly dividend was set to rise from $0.12 to $0.14 per share on June 15th.
Following this sale, Harvey owns just over five thousand shares in WMS valued at roughly $530k meaning he has not turned his back entirely on the niche market of automated pumping stations or other infrastructure investments despite taking profit at what others may see as an inappropriate time.
Nonetheless, savvy investors may perceive the move by Barclays PLC as a bullish indicator for future opportunities in this field making WMS one to watch closely during forthcoming earning reports and updates regarding partnerships or acquisitions by industry competitors who also sense the burgeoning opportunities within this specialist environment sector.
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Institutional Investors and Hedge Funds Show Growing Interest in Advanced Drainage Systems Amid Positive Financial Performance
Advanced Drainage Systems (NYSE:WMS) has recently received a flurry of investor interest as a number of institutional investors and hedge funds acquire significant stakes in the company. Belpointe Asset Management LLC, Neo Ivy Capital Management, CWM LLC, Steph & Co., and Royal London Asset Management Ltd. have all purchased positions in Advanced Drainage Systems over the last several quarters. This heightened level of investor activity is significant for the company and speaks to its growing prominence in the construction industry.
Several brokerages have weighed in on Advanced Drainage Systems with most offering very positive assessments of the stock’s prospects. Morgan Stanley reduced their target price from $110.00 to $105.00 but kept their “overweight” rating for the company intact, while Deutsche Bank Aktiengesellschaft lifted their price target from $125.00 to $131.00. Barclays raised their target price on Advanced Drainage Systems from $113.00 to $119.00 and Loop Capital lifted their target price from $115.00 to $120.00.
Such high praise is justified by Advanced Drainage Systems’ recent financial performance which has exceeded even analyst expectations. For Q1 2023, the construction company reported earnings per share (EPS) of $1.06, beating consensus estimates by a substantial 38 cents per share ($0.68). The firm also posted revenue of over half a billion dollars at $617.60 million for the quarter, compared to analysts’ expectations of $567 million.
In response to this solid financial foundation, Advance Drainage System’s board recently approved a quarterly dividend payout that is substantially larger than previous payouts – an indication that growth-oriented investors continue to remain bullish as well as confident that opportunities for further growth will continue even amid challenges such as stiff competition within the industry.
While it may be unclear if hedge fund managers,” are confident about WMS,” due to a single phase on the Bloomberg report, investors can be reassured by the stock’s recent trading pattern. Shares in Advanced Drainage Systems have traded as high $106.80 and as low $75.02 over the last 52 weeks and with positive financial indicators and positive ratings from brokerages, investors may consider this construction company for their portfolios.