WMS Advanced Drainage Systems Inc

Mirova US LLC reduced its stake in Advanced Drainage Systems ($WMS) by 3.8% to 681,397 shares, valued at $94.51 million, though institutional investors collectively own nearly 90% of the company. Despite recent insider stock sales totaling $14.6 million, $WMS reported strong quarterly earnings and analysts maintain a "Moderate Buy" rating with an average price target of $157.11. The company also announced a quarterly dividend of $0.18 per share.

Scott Barbour, President and CEO of Advanced Drainage Systems (ADS), has been named Columbus CEO's 2025 CEO of the Year for the Large For-Profit category. Since joining ADS in 2017, Barbour has significantly grown the company's revenue and profitability, emphasizing sustainability and strategic acquisitions. His leadership has led to increased growth and operational efficiency throughout the company.

Swedbank AB significantly reduced its stake in Advanced Drainage Systems (NYSE:WMS) by 20.7%, now holding 361,230 shares valued at $50.10 million. Despite insider selling, Advanced Drainage Systems exceeded quarterly earnings and revenue expectations, leading analysts to maintain a "Moderate Buy" consensus with an average price target of $157.11. The company also declared a quarterly dividend of $0.18 per share.

Advanced Drainage Systems (WMS) has seen a significant stock price increase, outpacing the S&P 500. This article evaluates the company, highlighting its strong operating margin and increasing free cash flow margin as positive indicators. However, it also points out a concern regarding lackluster revenue growth.

Advanced Drainage Systems (WMS) has shown strong performance with a 26.2% return over six months, driven by elite operating margins, an average of 21.5% over five years, and increasing free cash flow margins. Despite these positives, the company faces skepticism due to its lackluster revenue growth, with a recent annualized growth of 2.7% falling below its five-year trend. The article suggests that while WMS's positive characteristics outweigh the negatives, its current valuation at 24.3x forward P/E warrants careful consideration.

Advanced Drainage Systems, Inc. (NYSE:WMS) has seen a significant share price rise, trading at yearly-high levels. Despite this, the company's stock is currently considered overvalued by approximately 39% according to Simply Wall St's valuation model. However, its earnings growth is expected to be in the teens in the upcoming years, suggesting robust future cash flows, which means there could be a future opportunity to buy.