ABN Amro Investment Solutions Purchases 34,815 Shares of Xylem Inc. $XYL

Key Points

• ABN Amro Investment Solutions increased its Xylem stake by 16.8% in the fourth quarter, buying 34,815 more shares and bringing its total holdings to 242,147 shares valued at about $33 million.
• Xylem reported better-than-expected quarterly results, with EPS of $1.12 versus $1.09 expected and revenue of $2.13 billion versus $2.11 billion expected; revenue rose 2.7% year over year.
• The company also authorized a $1.5 billion share repurchase program and declared a quarterly dividend of $0.43 per share, implying a 1.6% annualized yield.

ABN Amro Investment Solutions grew its position in Xylem Inc. (NYSE:XYL - Free Report) by 16.8% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 242,147 shares of the industrial products company's stock after acquiring an additional 34,815 shares during the quarter. ABN Amro Investment Solutions owned 0.10% of Xylem worth $32,976,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the company. Vanguard Group Inc. lifted its position in shares of Xylem by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 30,054,743 shares of the industrial products company's stock worth $4,092,855,000 after acquiring an additional 152,507 shares during the period. State Street Corp lifted its position in shares of Xylem by 1.2% in the 3rd quarter. State Street Corp now owns 10,953,206 shares of the industrial products company's stock worth $1,615,598,000 after acquiring an additional 133,173 shares during the period. Swedbank AB lifted its position in shares of Xylem by 6.0% in the 4th quarter. Swedbank AB now owns 5,507,966 shares of the industrial products company's stock worth $750,075,000 after acquiring an additional 310,213 shares during the period. Northern Trust Corp lifted its position in shares of Xylem by 1.6% in the 3rd quarter. Northern Trust Corp now owns 3,259,233 shares of the industrial products company's stock worth $480,737,000 after acquiring an additional 51,343 shares during the period. Finally, Legal & General Group Plc lifted its position in shares of Xylem by 12.2% in the 3rd quarter. Legal & General Group Plc now owns 2,029,272 shares of the industrial products company's stock worth $299,318,000 after acquiring an additional 220,246 shares during the period. Institutional investors own 87.96% of the company's stock.

Xylem Trading Up 1.6%

XYL stock opened at $108.08 on Thursday. The company has a market cap of $25.69 billion, a P/E ratio of 26.88, a PEG ratio of 1.51 and a beta of 1.08. Xylem Inc. has a twelve month low of $105.29 and a twelve month high of $154.27. The company has a quick ratio of 1.10, a current ratio of 1.46 and a debt-to-equity ratio of 0.13. The business has a fifty day moving average of $119.40 and a 200-day moving average of $131.61.

Xylem (NYSE:XYL - Get Free Report) last released its earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, topping analysts' consensus estimates of $1.09 by $0.03. The company had revenue of $2.13 billion during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.03 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. As a group, equities research analysts expect that Xylem Inc. will post 5.51 EPS for the current year.

Xylem announced that its Board of Directors has approved a share repurchase program on Wednesday, February 25th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the industrial products company to repurchase up to 4.8% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Xylem Dividend Announcement

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

Insiders Place Their Bets

In related news, Director Jerome A. Peribere acquired 1,210 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The stock was acquired at an average cost of $116.61 per share, with a total value of $141,098.10. Following the completion of the purchase, the director directly owned 27,209 shares in the company, valued at approximately $3,172,841.49. This trade represents a 4.65% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 sale, the chief accounting officer directly owned 3,605 shares of the company's stock, valued at approximately $423,443.30. This trade represents a 54.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.32% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have commented on XYL. Royal Bank Of Canada reduced their price objective on Xylem from $176.00 to $162.00 and set an "outperform" rating for the company in a research report on Wednesday, February 11th. JPMorgan Chase & Co. reduced their price objective on Xylem from $170.00 to $160.00 and set an "overweight" rating for the company in a research report on Thursday, April 16th. Stifel Nicolaus cut their target price on Xylem from $163.00 to $159.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. TD Cowen restated a "hold" rating on shares of Xylem in a research report on Monday, February 23rd. Finally, UBS Group raised their target price on Xylem from $132.00 to $133.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Seven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price 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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