Xylem Inc. (NYSE:XYL) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Xylem Inc. (NYSE:XYL) has been assigned an average rating of “Moderate Buy” from the fifteen brokerages that are presently covering the firm, Marketbeat.com reports. Six research analysts have rated the stock with a hold rating and nine have issued a buy rating on the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $154.3846.

Several equities analysts have recently commented on the company. Stifel Nicolaus cut their price target on Xylem from $175.00 to $163.00 and set a “buy” rating on the stock in a research note on Tuesday. William Blair assumed coverage on Xylem in a research note on Monday, January 26th. They set an “outperform” rating on the stock. Royal Bank Of Canada cut their price target on Xylem from $176.00 to $162.00 and set an “outperform” rating on the stock in a research note on Wednesday, February 11th. Mizuho set a $138.00 price target on Xylem in a research note on Wednesday, February 11th. Finally, Oppenheimer reissued an “outperform” rating and set a $160.00 price objective (down from $165.00) on shares of Xylem in a report on Wednesday, April 1st.

Hedge Funds Weigh In On Xylem

Institutional investors have recently bought and sold shares of the business. SJS Investment Consulting Inc. grew its stake in Xylem by 1,844.4% in the third quarter. SJS Investment Consulting Inc. now owns 175 shares of the industrial products company’s stock valued at $26,000 after purchasing an additional 166 shares during the last quarter. Knuff & Co LLC purchased a new position in Xylem in the third quarter valued at about $27,000. Board of the Pension Protection Fund purchased a new position in Xylem in the fourth quarter valued at about $27,000. Commonwealth Retirement Investments LLC purchased a new position in Xylem in the fourth quarter valued at about $27,000. Finally, Wexford Capital LP purchased a new position in Xylem in the third quarter valued at about $27,000. 87.96% of the stock is owned by hedge funds and other institutional investors.

Xylem Stock Performance

Shares of NYSE:XYL opened at $125.23 on Thursday. The firm has a market cap of $30.45 billion, a PE ratio of 31.95, a price-to-earnings-growth ratio of 1.86 and a beta of 1.18. The firm’s 50 day simple moving average is $125.70 and its 200-day simple moving average is $136.85. Xylem has a one year low of $107.04 and a one year high of $154.27. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.28 and a current ratio of 1.62.

Xylem (NYSE:XYL) last issued its earnings results on Tuesday, February 10th. The industrial products company reported $1.42 EPS for the quarter, hitting analysts’ consensus estimates of $1.42. Xylem had a net margin of 10.59% and a return on equity of 11.11%. The company’s quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter last year, the firm earned $1.18 EPS. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. As a group, equities analysts predict that Xylem will post 4.65 EPS for the current year.

Xylem Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, February 24th were issued a dividend of $0.43 per share. The ex-dividend date of this dividend was Tuesday, February 24th. This is a positive change from Xylem’s previous quarterly dividend of $0.40. This represents a $1.72 annualized dividend and a yield of 1.4%. Xylem’s dividend payout ratio is 43.88%.

Xylem declared that its Board of Directors has initiated a stock buyback plan on Wednesday, February 25th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the industrial products company to purchase up to 4.8% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Xylem Company Profile

Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.