Xylem (NYSE:XYL) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded Xylem to “strong sell” from “hold,” while the broader analyst consensus remains “hold” with an average price target of $121.31. Several firms also recently reduced their ratings or price targets.
• Xylem’s latest quarter fell slightly short of expectations, with EPS of $1.44 versus $1.45 expected and revenue of $2.20 billion versus $2.28 billion; revenue declined 3% year over year.
• Shares opened at $92.41, near their 12-month low, despite a director purchasing 11,000 shares for approximately $985,600. Institutional investors continue to own a significant 87.96% of the company.

Xylem (NYSE:XYL - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Thursday, Zacks reports.

A number of other brokerages also recently commented on XYL. Mizuho set a $99.00 target price on shares of Xylem in a report on Wednesday. UBS Group lowered their price target on shares of Xylem from $112.00 to $99.00 and set a "neutral" rating on the stock in a report on Thursday. Stifel Nicolaus cut their price objective on shares of Xylem from $141.00 to $114.00 and set a "buy" rating on the stock in a research report on Wednesday. Citigroup reduced their price objective on shares of Xylem from $148.00 to $130.00 and set a "buy" rating for the company in a research note on Wednesday. Finally, Barclays cut shares of Xylem from an "overweight" rating to an "equal weight" rating and decreased their target price for the company from $139.00 to $104.00 in a research report on Wednesday. Nine equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $121.31.

Xylem Stock Up 1.8%

Shares of NYSE XYL opened at $92.41 on Thursday. Xylem has a 12-month low of $87.40 and a 12-month high of $152.43. The stock's fifty day simple moving average is $105.05 and its two-hundred day simple moving average is $117.57. The stock has a market capitalization of $21.19 billion, a PE ratio of 20.44, a price-to-earnings-growth ratio of 1.51 and a beta of 1.00. The company has a current ratio of 1.39, a quick ratio of 1.24 and a debt-to-equity ratio of 0.23.

Xylem (NYSE:XYL - Get Free Report) last released its quarterly earnings results on Tuesday, October 27th. The industrial products company reported $1.44 EPS for the quarter, missing the consensus estimate of $1.45 by ($0.01). The company had revenue of $2.20 billion during the quarter, compared to the consensus estimate of $2.28 billion. Xylem had a return on equity of 12.06% and a net margin of 11.94%. The company's revenue was down 3.0% on a year-over-year basis. During the same period in the previous year, the firm posted $1.37 earnings per share. As a group, analysts expect that Xylem will post 5.45 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director D Koch acquired 11,000 shares of Xylem stock in a transaction on Thursday, October 29th. The stock was acquired at an average price of $89.60 per share, for a total transaction of $985,600.00. Following the purchase, the director owned 12,247 shares of the company's stock, valued at approximately $1,097,331.20. This represents a 882.12% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.32% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Oregon Public Employees Retirement Fund boosted its holdings in shares of Xylem by 0.4% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 27,923 shares of the industrial products company's stock worth $3,337,000 after buying an additional 100 shares during the last quarter. Thrive Wealth Management LLC lifted its position in shares of Xylem by 2.1% during the 2nd quarter. Thrive Wealth Management LLC now owns 5,032 shares of the industrial products company's stock valued at $595,000 after buying an additional 104 shares during the last quarter. World Investment Advisors raised its stake in Xylem by 3.7% in the 1st quarter. World Investment Advisors now owns 3,319 shares of the industrial products company's stock valued at $397,000 after acquiring an additional 119 shares during the period. Aventus Investment Advisors Inc. lifted its holdings in Xylem by 66.7% during the second quarter. Aventus Investment Advisors Inc. now owns 300 shares of the industrial products company's stock valued at $35,000 after purchasing an additional 120 shares during the last quarter. Finally, Aprio Wealth Management LLC raised its position in shares of Xylem by 6.2% in the third quarter. Aprio Wealth Management LLC now owns 2,114 shares of the industrial products company's stock valued at $214,000 after purchasing an additional 123 shares during the period. 87.96% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Xylem

Here are the key news stories impacting Xylem this week:

• Positive Sentiment: Director D. Christian Koch purchased 11,000 Xylem shares for approximately $985,600 at an average price of $89.60. The transaction increased his direct holdings more than eightfold and may signal confidence that the recent selloff has created an attractive entry point. Insider purchase report
• Positive Sentiment: Some analysts continue to see longer-term value. RBC Capital reaffirmed its buy rating, while RBC’s new coverage assigned a moderate-buy rating and a $125 price target, implying substantial upside from recent levels. RBC rating report
• Neutral Sentiment: Xylem announced divestitures and a new three-segment operating structure. The changes could sharpen strategic focus and improve portfolio efficiency, but execution and transition risks remain. Xylem restructuring report
• Negative Sentiment: Xylem’s latest quarter missed expectations: EPS was $1.44 versus $1.45 expected, revenue was $2.20 billion versus $2.28 billion expected, and sales declined 3% year over year. Management’s new 2026 adjusted-EPS ceiling of $5.45 is below the prior $5.55 floor, reinforcing concerns about weaker growth.
• Negative Sentiment: Barclays downgraded Xylem to equal weight from overweight, JPMorgan lowered its rating to underweight, and UBS, Stifel, BNP Paribas Exane, Citigroup and Oppenheimer reduced price targets. The revisions reflect diminished near-term earnings and valuation expectations. Barclays downgrade report
• Negative Sentiment: Levi & Korsinsky announced an investigation into potential securities-law violations related to investor losses, adding legal uncertainty and another possible overhang for XYL shareholders. Investigation announcement

About Xylem

Xylem Inc NYSE: XYL is a global water technology company that develops products and services for the transportation, treatment, testing and efficient use of water and wastewater. Its offerings support municipal water and wastewater utilities, industrial customers, commercial facilities and residential applications.

The company's products and solutions include water and wastewater pumps, treatment systems, dewatering equipment, smart meters, monitoring and control technologies, leak detection tools, and data-driven analytics.

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