AXQ Capital LP Acquires Shares of 20,858 Xylem Inc. $XYL

Key Points

• AXQ Capital LP disclosed a new position in Xylem, buying 20,858 shares worth about $2.84 million in the fourth quarter. The stake represents roughly 0.6% of AXQ’s portfolio and is its 6th largest holding.
• Xylem’s latest quarterly results topped expectations, with EPS of $1.12 versus estimates of $1.09 and revenue of $2.13 billion versus expectations of $2.11 billion. The company also reiterated strong fundamentals, including FY 2026 EPS guidance of 5.35 to 5.60.
• The company announced a $1.50 billion share repurchase authorization and a quarterly dividend of $0.43 per share, payable June 25. Analysts remain cautiously positive, with a consensus rating of Moderate Buy and an average price target of $152.77.

AXQ Capital LP bought a new position in shares of Xylem Inc. (NYSE:XYL - Free Report) in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 20,858 shares of the industrial products company's stock, valued at approximately $2,840,000. Xylem accounts for about 0.6% of AXQ Capital LP's holdings, making the stock its 6th largest holding.

Other hedge funds also recently added to or reduced their stakes in the company. Fisher Asset Management LLC boosted its position in Xylem by 6.4% during the third quarter. Fisher Asset Management LLC now owns 404,613 shares of the industrial products company's stock worth $59,681,000 after acquiring an additional 24,352 shares during the last quarter. LGT Capital Partners LTD. boosted its holdings in shares of Xylem by 18.4% in the 3rd quarter. LGT Capital Partners LTD. now owns 268,704 shares of the industrial products company's stock valued at $39,634,000 after purchasing an additional 41,730 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Xylem by 2,309.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 431,824 shares of the industrial products company's stock valued at $54,314,000 after purchasing an additional 413,904 shares during the last quarter. ABN AMRO Bank N.V. raised its stake in shares of Xylem by 2.3% in the 3rd quarter. ABN AMRO Bank N.V. now owns 1,637,096 shares of the industrial products company's stock valued at $240,511,000 after acquiring an additional 36,992 shares during the period. Finally, Abacus Wealth Partners LLC purchased a new stake in Xylem during the 4th quarter worth $1,663,000. 87.96% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Xylem news, CAO Geri-Michelle Mcshane sold 4,269 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $117.46, for a total transaction of $501,436.74. Following the sale, the chief accounting officer directly owned 3,605 shares in the company, valued at approximately $423,443.30. This trade represents a 54.22% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Jerome A. Peribere bought 1,210 shares of the company's stock in a transaction on Monday, May 4th. The shares were bought at an average price of $116.61 per share, for a total transaction of $141,098.10. Following the completion of the acquisition, 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 position. Additional details regarding this purchase are available in the official SEC disclosure. 0.32% of the stock is currently owned by company insiders.

Xylem Price Performance

NYSE XYL opened at $108.38 on Tuesday. The company has a current ratio of 1.46, a quick ratio of 1.10 and a debt-to-equity ratio of 0.13. The company has a fifty day simple moving average of $117.60 and a 200 day simple moving average of $129.31. The company has a market cap of $25.76 billion, a P/E ratio of 26.96, a P/E/G ratio of 1.56 and a beta of 1.05. Xylem Inc. has a 1 year low of $105.29 and a 1 year high of $154.27.

Xylem (NYSE:XYL - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 net margin of 10.79% and a return on equity of 11.26%. The business's revenue was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.03 EPS. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. On average, sell-side analysts predict that Xylem Inc. will post 5.51 EPS for the current year.

Xylem declared that its board has authorized a stock repurchase plan on Wednesday, February 25th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the industrial products company to repurchase up to 4.8% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its shares are undervalued.

Xylem Dividend Announcement

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

Analysts Set New Price Targets

Several research firms have recently weighed in on XYL. Barclays dropped their target price on shares of Xylem from $156.00 to $154.00 and set an "overweight" rating for the company in a research report on Wednesday, April 29th. Oppenheimer decreased their price target on shares of Xylem from $160.00 to $158.00 and set an "outperform" rating for the company in a report on Wednesday, April 29th. The Goldman Sachs Group set a $158.00 price target on shares of Xylem in a report on Wednesday, February 11th. TD Cowen reissued a "hold" rating on shares of Xylem in a research note on Monday, February 23rd. Finally, Mizuho set a $138.00 target price on shares of Xylem in a research note on Wednesday, February 11th. Seven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus 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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