D. Scott Barbour Divests Over $11.9 Million in Advanced Drainage Systems Shares

D. Scott Barbour, an insider at Advanced Drainage Systems, Inc. (NYSE: WMS), has sold a significant number of shares in the company. On November 12, 2023, Barbour offloaded 80,030 shares at an average price of $148.95, resulting in a total transaction value of approximately $11,920,468.50. Following this sale, Barbour retains ownership of 42,867 shares, valued at around $6,385,039.65, marking a substantial decrease of 65.12% in his holdings.

The details of this transaction were disclosed in a filing with the U.S. Securities and Exchange Commission (SEC). The document is accessible for public review, providing further transparency into the insider trading activity.

Market Performance and Financial Metrics

Shares of Advanced Drainage Systems opened at $143.88 on November 13, 2023. The company currently has a market capitalization of $11.19 billion and exhibits solid financial health, with a debt-to-equity ratio of 0.82. Key metrics include a current ratio of 3.22 and a quick ratio of 2.25.

Over the past fifty days, the stock has maintained a moving average price of $141.70, while the two-hundred day moving average stands at $128.56. Advanced Drainage Systems has experienced a fifty-two week low of $93.92 and a high of $153.25.

The company recently reported its quarterly earnings on November 6, 2023, revealing an earnings per share (EPS) of $1.97. This figure surpassed analysts’ expectations, which had predicted an EPS of $1.70. Revenue for the quarter reached $850.38 million, exceeding estimates of $802.49 million. With a net margin of 14.82% and a return on equity of 29.57%, the company has shown an 8.7% increase in revenue year-over-year compared to the same quarter last year, when it reported an EPS of $1.70.

Investor Activity and Analyst Ratings

Recent activity among institutional investors has also been notable. Envestnet Asset Management Inc. increased its stake in Advanced Drainage Systems by 11.3% during the first quarter, now owning 70,705 shares valued at approximately $7,682,000. Other firms, including Xponance Inc. and Signaturefd LLC, have also adjusted their holdings, highlighting a robust interest in the stock. Currently, institutional investors hold 89.83% of the company’s shares.

Wall Street analysts have expressed positive sentiments toward Advanced Drainage Systems. Weiss Ratings has maintained a “hold” rating, while Barclays raised its target price from $160.00 to $176.00, designating an “overweight” rating. UBS Group reaffirmed a “buy” rating with a new price target of $167.00, up from $146.00. Royal Bank of Canada and Robert W. Baird have also set target prices of $168.00 and $166.00, respectively.

MarketBeat.com reports that the consensus rating for Advanced Drainage Systems is “Moderate Buy,” with a target price of $156.56.

Advanced Drainage Systems, Inc. specializes in the design, manufacturing, and marketing of thermoplastic corrugated pipes and related water management products across North America and internationally. The company operates through various segments, including Pipe, International, Infiltrator, and Allied Products & Other, offering a range of products from single and double-wall pipes to septic systems and storm water management solutions.

This recent insider transaction and the company’s financial performance illustrate the dynamic nature of Advanced Drainage Systems as it navigates market conditions and investor interests.