Callahan Advisors LLC Acquires Shares of 12,641 Xylem Inc. $XYL

Key Points

• Callahan Advisors LLC opened a new position in Xylem, buying 12,641 shares worth about $1.72 million in the fourth quarter.
• Xylem reported better-than-expected Q1 earnings, posting $1.12 per share on revenue of $2.13 billion, and also raised its FY 2026 guidance to $5.35–$5.60 EPS.
• The company announced a $1.5 billion share buyback and a quarterly dividend of $0.43 per share, payable June 25, while analysts currently rate the stock a Moderate Buy with a consensus target of $152.77.

Callahan Advisors LLC acquired a new stake in shares of Xylem Inc. (NYSE:XYL - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 12,641 shares of the industrial products company's stock, valued at approximately $1,721,000.

Several other institutional investors have also added to or reduced their stakes in XYL. Schroder Investment Management Group lifted its holdings in Xylem by 2,055.2% during 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 purchasing an additional 1,137,342 shares during the last quarter. Balyasny Asset Management L.P. lifted its holdings 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 worth $105,160,000 after buying an additional 553,152 shares in the last quarter. Adage Capital Partners GP L.L.C. purchased a new stake in shares of Xylem in the second quarter worth about $64,407,000. Jennison Associates LLC lifted its holdings 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 worth $86,290,000 after buying an additional 448,148 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Xylem by 2,309.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 431,824 shares of the industrial products company's stock worth $54,314,000 after buying an additional 413,904 shares in the last quarter. 87.96% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Jerome A. Peribere bought 1,210 shares of the stock in a transaction that occurred on Monday, May 4th. The shares were 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 of the company's stock, valued at $3,172,841.49. This trade represents a 4.65% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, 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 completion of the sale, the chief accounting officer directly owned 3,605 shares in the company, valued at $423,443.30. This represents a 54.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.32% of the company's stock.

Xylem Trading Up 1.6%

Shares of XYL opened at $108.08 on Thursday. The firm's 50 day simple moving average is $119.40 and its 200 day simple moving average is $131.61. The company has a market capitalization of $25.69 billion, a P/E ratio of 26.88, a P/E/G ratio of 1.51 and a beta of 1.08. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.46 and a quick ratio of 1.10. 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 earnings results on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share for the quarter, beating analysts' consensus estimates of $1.09 by $0.03. The business had revenue of $2.13 billion for the quarter, compared to the consensus estimate of $2.11 billion. Xylem had a net margin of 10.79% and a return on equity of 11.26%. Xylem's quarterly revenue was up 2.7% on a year-over-year basis. During the same period last year, the firm posted $1.03 earnings per share. Xylem has set its FY 2026 guidance at 5.350-5.600 EPS. Sell-side analysts forecast that Xylem Inc. will post 5.51 earnings per share for the current fiscal year.

Xylem declared that its Board of Directors has approved a share repurchase 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 stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Xylem Dividend Announcement

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

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. The Goldman Sachs Group set a $158.00 price target on shares of Xylem in a report on Wednesday, February 11th. Mizuho set a $138.00 price target on shares of Xylem in a report on Wednesday, February 11th. Royal Bank Of Canada lowered their price target on shares of Xylem from $176.00 to $162.00 and set an "outperform" rating on the stock in a report on Wednesday, February 11th. Citigroup lowered their price target on shares of Xylem from $174.00 to $168.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Finally, Stifel Nicolaus lowered their price target on shares of Xylem from $163.00 to $159.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Seven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $152.77.

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.

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