Shares of Advanced Drainage Systems, Inc. (NYSE:WMS) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $20.90, but opened at $19.90. Advanced Drainage Systems shares last traded at $19.40, with a volume of 3,776,730 shares trading hands.

The construction company reported $0.27 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.35 by $0.08. The firm had revenue of $358.36 million for the quarter, compared to analyst estimates of $372.63 million. Advanced Drainage Systems had a return on equity of 102.23% and a net margin of 3.05%. The firm’s quarterly revenue was up .2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.29 EPS.

The company also recently declared a quarterly dividend, which will be paid on Friday, September 15th. Stockholders of record on Friday, September 1st will be issued a dividend of $0.07 per share. The ex-dividend date of this dividend is Wednesday, August 30th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.44%. Advanced Drainage Systems’s dividend payout ratio is currently 50.00%.

A number of brokerages have recently issued reports on WMS. Boenning Scattergood restated a “hold” rating on shares of Advanced Drainage Systems in a report on Thursday. BidaskClub upgraded shares of Advanced Drainage Systems from a “strong sell” rating to a “sell” rating in a report on Monday. Zacks Investment Research upgraded shares of Advanced Drainage Systems from a “sell” rating to a “buy” rating and set a $22.00 price target for the company in a report on Thursday, July 13th. Finally, Royal Bank Of Canada restated a “hold” rating on shares of Advanced Drainage Systems in a report on Friday, May 26th. One analyst has rated the stock with a sell rating, three have given a hold rating and two have assigned a buy rating to the stock. The company has an average rating of “Hold” and an average target price of $25.33.

In related news, CEO Joseph A. Chlapaty bought 30,000 shares of the company’s stock in a transaction that occurred on Wednesday, June 7th. The stock was purchased at an average price of $19.39 per share, for a total transaction of $581,700.00. Following the acquisition, the chief executive officer now owns 227,786 shares of the company’s stock, valued at $4,416,770.54. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Chairman Joseph A. Chlapaty bought 10,000 shares of the company’s stock in a transaction that occurred on Thursday, June 15th. The stock was bought at an average price of $20.28 per share, with a total value of $202,800.00. Following the acquisition, the chairman now directly owns 227,786 shares in the company, valued at approximately $4,619,500.08. The disclosure for this purchase can be found here. 21.43% of the stock is currently owned by company insiders.

Hedge funds have recently bought and sold shares of the stock. Sei Investments Co. purchased a new position in Advanced Drainage Systems during the first quarter valued at about $157,000. Manchester Capital Management LLC increased its position in Advanced Drainage Systems by 3,123.3% in the first quarter. Manchester Capital Management LLC now owns 9,670 shares of the construction company’s stock valued at $212,000 after buying an additional 9,370 shares during the last quarter. Gotham Asset Management LLC purchased a new position in Advanced Drainage Systems during the first quarter valued at about $238,000. Paloma Partners Management Co purchased a new position in Advanced Drainage Systems during the first quarter valued at about $295,000. Finally, Highbridge Capital Management LLC purchased a new position in Advanced Drainage Systems during the fourth quarter valued at about $278,000. Hedge funds and other institutional investors own 79.62% of the company’s stock.

The stock’s 50-day moving average is $20.27 and its 200-day moving average is $21.82. The stock has a market cap of $1.08 billion, a PE ratio of 38.80 and a beta of 0.92.

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About Advanced Drainage Systems

Advanced Drainage Systems, Inc is engaged in designing, manufacturing and marketing of thermoplastic corrugated pipe and related water management products, primarily in North and South America, and Europe. The Company operates through two segments: Domestic and International. The Domestic segment manufactures and markets products throughout the United States.

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