Advanced Drainage Systems, Inc. (NYSE:WMS), the leading manufacturer of thermoplastic corrugated pipes in the United States, has caught the attention of First Trust Advisors LP with the company increasing its stake in shares by 37.2% in early February of this year. According to a filing with the Securities & Exchange Commission, First Trust owning 552,529 shares of WMS stock worth an estimated $45,291,000 as of early February. Advanced Drainage Systems, Inc produces and provides a suite of water management products and drainage solutions for construction and infrastructure applications through its Pipe, Infiltrator, International and Allied Products & Other segments.
The reports from several research firms have indicated favourable projections for WMS stock over the coming months. Morgan Stanley has confirmed an “overweight” rating for the company with a lowered target price of $105 per share after it originally projected $110 per share last April. Similarly to Morgan Stanley, Deutsche Bank Aktiengesellschaft is also backing up WMS’ potential by projecting a lower target price at $125 as opposed to its initial expectations at $147 while maintaining a “buy” rating for the corporation. Loop Capital also lowered their target price on shares from $118 to $115 but continued with an optimistic outlook for growth with positive buy ratings assigned to Advanced Drainage Systems.
StockNews.com took a more conservative approach with their assessments on the company giving it an overall “hold” rating suggesting that safe and secure investment options would be found elsewhere until further notice. However, Oppenheimer’s report provided positive ratings towards Advanced Drainage Systems by predicting healthy financial growth potential along projecting an ambitious price objective set at $108 per share.
It is clear that industry experts have different opinions regarding Advanced Drainage Systems’ future developments even though Bofi Federal Bank’s president Scott Hoch comments suggest that WMS remains undervalued by stating recently that “Advanced Drainage Systems is trading at a forward P/E of 22 and its average historical forward P/E is 31, suggesting major upside”.
Whether one agrees or disagrees with industry analysts’ projections or Bofi Federal Bank’s president Scott Hoch’s views on WMS shares, the financial news surrounding Advanced Drainage Systems continues to spark investor interest. One can only watch closely over coming months for signs as to what investment choices would be most profitable.
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Hedge Funds and Insider Trading Boost Interest in Advanced Drainage Systems Inc.
Advanced Drainage System Inc. (ADS) is a leading provider of water management solutions that provide for the efficient movement and control of water, while its products facilitate superior erosion control, and environmental protection. The construction company has recently been on the receiving end of modified holdings from many hedge funds. Among them, Robeco Schweiz AG has raised its position in shares of ADS by an astounding 188.1% during the fourth quarter.
As per recent SEC filings, institutional investors and hedge funds own 83.46% of ADS’ stock. Similarly, advanced Drainage systems also witnessed figures differ quite a bit with Liontrust Investment partners showing a growth stake by 961.4% while Vanguard Group showed an increase by 11.1%.
Besides hedge fund activities, ADS has also been buzzing due to insiders’ trading activities. As affirmed by SEC documents, Kevin C Talley- CAO at ADS sold over 22k shares on Friday, March 3^rd worth around $2million changing ownership to approximately 9%.
ADS is currently trading at $98.40 with a market capitalization of $7.99 billion and P/E ratio recorded as high as 17.73; this along with a high to low range record over the past year ranging from $75 – $153 has indeed maintained its potential for investors.
In summary, Advanced Drainage system’s ability to manage various stakeholders through regulatory compliance facilitates economic success when considering their impressive financials along with consistent rising investor interest in all quarters.
Therefore it remains a potentially lucrative investment since it continues maintaining liquidity coupled with robust operating margins through continuous expansive coverage in products and markets alike; meeting industry-specific challenges while providing innovative solutions simultaneously- Consequently reinforcing personal goodwill among customers throughout entrepreneurship years ahead while potentially maximizing shareholder value through strategic investments and increased partnerships.”
