Is Advanced Drainage Systems Inc. (NYSE:WMS) ripe for offloading?

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Shares of Advanced Drainage Systems, Inc. (NYSE:WMS) last traded at $19.15. (NYSE:WMS) performance year to date is -7.04%. The 200 day simple moving average is -13.53%. The 200 SMA is considered a major indicator by market analysts and traders for determining the long-term trend. The price in the market that coincides with the 200 day SMA is recognized as a key support when price moves above the 200 day SMA or resistance when price drops below the same.

Advanced Drainage Systems, Inc. is a manufacturer of thermoplastic corrugated pipe, providing a comprehensive suite of water management products and drainage solutions for use in the construction and infrastructure marketplace. The company provides single, double, and triple wall corrugated polypropylene and polyethylene pipes; and allied products comprising PVC drainage structures, fittings and filters, and water quality filters and separators. Its products are used across a broad range of end markets and applications, including non-residential, residential, agriculture and infrastructure applications. Advanced Drainage Systems, Inc. is headquartered in Hilliard, Ohio.

Advanced Drainage Systems, Inc. (NYSE:WMS) has been in the buzz for all the right reasons.

The Barchart Technical Opinion rating is a 96% Sell with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend. The market is in highly oversold territory. Beware of a trend reversal.

The Exponential Moving Average is similar to a simple moving average but it uses a weighting element that exponentially drops from the recent data point. EMA analysis assesses the short term,5 days and 13 days, intermediate term that is 20 days and long-term 50 days EMA. These EMAs will give bullish indications when moving above trailing EMAs and below the latest price and vice versa. EMA alerts comprise crossovers that is the 5 day EMA crosses below/above the 20 day EMA and EMA convergences, 5 day EMA comparable to 13 day EMA. The 5 day EMA 19.40 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 21.54 is also higher than the current trading price depicting a bearish trend overall..

The relative strength index is a momentum oscillator that can measure the magnitude of stock price and velocity changes. Momentum is computed as the ratio of plus price changes to negative price changes. The RSI assessment compares the prevailing RSI against oversold (30), overbought (70) and neutral (50) conditions. Alerts will apprise you when stocks retreat from overbought/oversold levels or breakthrough neutral (50). The current RSI is 26.95 suggesting a bearish price action.

Advanced Drainage Systems, Inc. (NYSE:WMS) is all set to report its earnings on May 25/b. As per Zack’s analyst scores, Advanced Drainage Systems, Inc. (NYSE:WMS) currently has a mean brokerage rating of 2.5. On a scale of 1-5, a rating of 1 or 2 would imply a buy, and a rating of 4 or 5 would indicate a sell recommendation. A rating of 3 would represent a hold on the equity. The consensus target price on (NYSE:WMS) is $24.666 with a high of $26 and a low of $24.

As such, while we consider Advanced Drainage Systems, Inc. (NYSE:WMS) represents a enthralling growth story open to several attractive markets, it would be fascinating to see how it works for long-term shareholders.

Advanced Drainage Systems, Inc. (NYSE:WMS) (“ADS” or the “Company”), a leading global manufacturer of water management products and solutions for commercial, residential, infrastructure and agricultural applications, today announced that its Board of Directors has approved a quarterly cash dividend to its shareholders in the amount of $0.07 per share.

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