Advanced Drainage Systems (NYSE:WMS) Shares Up 7.8% Following Earnings Beat

Advanced Drainage Systems, Inc. (NYSE:WMS)’s stock price traded up 7.8% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $173.07 and last traded at $172.7380. 623,397 shares traded hands during trading, a decline of 11% from the average session volume of 696,708 shares. The stock had previously closed at $160.26.

The construction company reported $1.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.11 by $0.16. Advanced Drainage Systems had a net margin of 15.75% and a return on equity of 27.72%. The firm had revenue of $693.35 million during the quarter, compared to the consensus estimate of $686.37 million. During the same period last year, the business posted $1.09 earnings per share. The business’s revenue for the quarter was up .4% compared to the same quarter last year.

Advanced Drainage Systems Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Monday, March 2nd. Advanced Drainage Systems’s payout ratio is presently 12.29%.

Trending Headlines about Advanced Drainage Systems

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

• Positive Sentiment: Q3 fiscal 2026 results topped estimates — EPS of $1.27 beat consensus and revenue of ~$693M slightly exceeded expectations; management reported strong margins and ROE, supporting the profit beat. Q3 Results & Repurchase
• Positive Sentiment: Management set a ~$3.015B revenue target and said NDS integration is progressing, while expanding the margin outlook — investors likely viewed this as confirmation that acquisitions and cost/scale synergies will drive future profitability. Revenue Target & NDS Integration
• Positive Sentiment: Capital return actions: board raised the quarterly dividend by ~13% to $0.18 and increased stock-repurchase authorization — both moves send cash-return and shareholder-friendly signals that support the stock. Dividend Announcement
• Neutral Sentiment: Additional coverage and materials (earnings call transcript and slide deck) are available for detail on segment trends, pricing and cost synergies — useful for investors doing deeper diligence. Earnings Call Transcript
• Neutral Sentiment: Recent commentary previews and analyst notes highlighted the stronger-than-expected sales in Q4 CY2025 and pointed to key metrics to watch next (growth, margins, NDS contribution). Q4 Sales Coverage
• Negative Sentiment: Top-line growth remains modest (revenue up ~0.4% YoY in the quarter) and valuation is extended vs. slower organic growth — these factors could cap upside if margin improvements or acquisition synergies disappoint. Share Price / Valuation

Analyst Ratings Changes

A number of research firms have issued reports on WMS. Robert W. Baird set a $205.00 price objective on shares of Advanced Drainage Systems in a report on Friday. KeyCorp lifted their price target on shares of Advanced Drainage Systems from $180.00 to $198.00 and gave the company an “overweight” rating in a research report on Friday. Oppenheimer increased their price target on Advanced Drainage Systems from $175.00 to $180.00 and gave the stock an “outperform” rating in a research report on Thursday, January 15th. UBS Group set a $215.00 price objective on Advanced Drainage Systems and gave the stock a “buy” rating in a research note on Friday. Finally, Barclays upped their target price on Advanced Drainage Systems from $187.00 to $198.00 and gave the company an “overweight” rating in a research report on Friday. Eight research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $183.50.

Insiders Place Their Bets

In other news, insider D. Scott Barbour sold 80,030 shares of the business’s stock in a transaction on Wednesday, November 12th. The stock was sold at an average price of $148.95, for a total transaction of $11,920,468.50. Following the completion of the transaction, the insider owned 42,867 shares of the company’s stock, valued at approximately $6,385,039.65. The trade was a 65.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Thomas J. Sr. Waun sold 1,272 shares of the stock in a transaction dated Tuesday, November 11th. The stock was sold at an average price of $148.30, for a total transaction of $188,637.60. Following the completion of the transaction, the executive vice president directly owned 797 shares of the company’s stock, valued at $118,195.10. This trade represents a 61.48% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 97,772 shares of company stock worth $14,605,539. 1.63% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Advanced Drainage Systems

A number of hedge funds have recently made changes to their positions in WMS. Bridges Investment Management Inc. grew its position in Advanced Drainage Systems by 32.9% in the 3rd quarter. Bridges Investment Management Inc. now owns 28,122 shares of the construction company’s stock valued at $3,901,000 after purchasing an additional 6,960 shares during the period. Mediolanum International Funds Ltd bought a new position in shares of Advanced Drainage Systems in the third quarter valued at $24,314,000. Pacer Advisors Inc. acquired a new position in shares of Advanced Drainage Systems during the third quarter valued at about $1,321,000. Asset Management One Co. Ltd. grew its holdings in shares of Advanced Drainage Systems by 29.7% during the third quarter. Asset Management One Co. Ltd. now owns 19,982 shares of the construction company’s stock valued at $2,772,000 after buying an additional 4,574 shares during the last quarter. Finally, Fisher Asset Management LLC increased its position in shares of Advanced Drainage Systems by 47.5% during the second quarter. Fisher Asset Management LLC now owns 40,651 shares of the construction company’s stock worth $4,669,000 after acquiring an additional 13,097 shares in the last quarter. 89.83% of the stock is currently owned by institutional investors.

Advanced Drainage Systems Stock Up 3.5%

The company has a market cap of $13.68 billion, a price-to-earnings ratio of 29.28, a price-to-earnings-growth ratio of 2.21 and a beta of 1.34. The company has a debt-to-equity ratio of 0.72, a quick ratio of 2.60 and a current ratio of 4.12. The stock’s fifty day moving average is $152.61 and its two-hundred day moving average is $143.76.

Advanced Drainage Systems Company 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.