34,513 Shares in Xylem Inc. $XYL Bought by Capital Innovations LLC

Key Points

• Capital Innovations LLC opened a new position in Xylem during the fourth quarter, buying 34,513 shares worth about $4.7 million. The stake makes Xylem its 28th-largest holding and about 1.3% of its portfolio.
• Xylem continues to see heavy institutional interest, with multiple funds increasing or initiating positions and 87.96% of shares now owned by institutions. Insider activity was mixed, as one executive sold shares while a director bought shares.
• The company reported stronger-than-expected quarterly results, with EPS of $1.12 and revenue of $2.13 billion, and it also authorized a $1.5 billion share buyback. Xylem declared a quarterly dividend of $0.43 per share and maintained a “Moderate Buy” analyst consensus.

Capital Innovations LLC bought a new stake in Xylem Inc. (NYSE:XYL - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 34,513 shares of the industrial products company's stock, valued at approximately $4,700,000. Xylem accounts for approximately 1.3% of Capital Innovations LLC's holdings, making the stock its 28th biggest position.

Several other hedge funds have also recently made changes to their positions in XYL. Norges Bank bought a new stake in shares of Xylem in the fourth quarter valued at $361,012,000. Schroder Investment Management Group raised its stake in shares of Xylem by 2,055.2% in the third quarter. Schroder Investment Management Group now owns 1,192,682 shares of the industrial products company's stock valued at $171,687,000 after buying an additional 1,137,342 shares during the period. Balyasny Asset Management L.P. raised its stake in shares of Xylem by 346.2% in the third quarter. Balyasny Asset Management L.P. now owns 712,950 shares of the industrial products company's stock valued at $105,160,000 after buying an additional 553,152 shares during the period. Adage Capital Partners GP L.L.C. bought a new stake in shares of Xylem in the second quarter valued at $64,407,000. Finally, Jennison Associates LLC raised its stake in shares of Xylem by 241.6% in the fourth quarter. Jennison Associates LLC now owns 633,648 shares of the industrial products company's stock valued at $86,290,000 after buying an additional 448,148 shares during the period. 87.96% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Xylem

In other news, CAO Geri-Michelle Mcshane sold 4,269 shares of Xylem stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $117.46, for a total value of $501,436.74. Following the completion of the transaction, the chief accounting officer directly owned 3,605 shares in the company, valued at approximately $423,443.30. The trade was a 54.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jerome A. Peribere bought 1,210 shares of Xylem stock in a transaction that occurred on Monday, May 4th. The shares were acquired at an average price of $116.61 per share, with a total value of $141,098.10. Following the completion of the transaction, the director owned 27,209 shares of the company's stock, valued at $3,172,841.49. This represents a 4.65% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.32% of the stock is currently owned by insiders.

Xylem Price Performance

Shares of NYSE XYL opened at $110.30 on Wednesday. The stock has a market cap of $26.22 billion, a PE ratio of 27.44, a price-to-earnings-growth ratio of 1.54 and a beta of 1.04. Xylem Inc. has a fifty-two week low of $105.29 and a fifty-two week high of $154.27. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.10 and a current ratio of 1.46. The stock has a fifty day moving average of $117.60 and a 200-day moving average of $129.31.

Xylem (NYSE:XYL - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.03. The company had revenue of $2.13 billion during the quarter, compared to analysts' expectations of $2.11 billion. Xylem had a return on equity of 11.26% and a net margin of 10.79%.The firm's quarterly revenue was up 2.7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.03 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. Equities research analysts anticipate that Xylem Inc. will post 5.51 earnings per share for the current year.

Xylem declared that its board has approved a stock buyback program on Wednesday, February 25th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the industrial products company to purchase up to 4.8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Xylem Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, May 28th will be given a $0.43 dividend. The ex-dividend date is Thursday, May 28th. This represents a $1.72 annualized dividend and a dividend yield of 1.6%. Xylem's payout ratio is 42.79%.

Analyst Upgrades and Downgrades

Several analysts have issued reports on XYL shares. Jefferies Financial Group restated a "hold" rating and issued a $130.00 target price (down from $140.00) on shares of Xylem in a research note on Tuesday, March 31st. TD Cowen restated a "hold" rating on shares of Xylem in a research note on Monday, February 23rd. Weiss Ratings lowered Xylem from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 8th. JPMorgan Chase & Co. lowered their target price on Xylem from $170.00 to $160.00 and set an "overweight" rating on the stock in a research note on Thursday, April 16th. Finally, Mizuho set a $138.00 price target on Xylem in a research report on Wednesday, February 11th. Seven research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $152.77.

About Xylem

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.

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