CIBC Asset Management Inc Grows Stock Holdings in Xylem Inc. $XYL

Key Points

• CIBC Asset Management increased its Xylem stake by 70.1% in the fourth quarter, bringing its holdings to 57,608 shares valued at about $7.85 million.
• Wall Street remains generally positive on Xylem, with seven analysts rating it a Buy, six a Hold, and a consensus price target of $152.77 despite several recent target cuts.
• Xylem reported better-than-expected quarterly results, with EPS of $1.12 and revenue of $2.13 billion, while also maintaining a quarterly dividend of $0.43 per share and authorizing a $1.5 billion share buyback.

CIBC Asset Management Inc boosted its position in Xylem Inc. (NYSE:XYL - Free Report) by 70.1% in the 4th quarter, according to its most recent filing with the SEC. The firm owned 57,608 shares of the industrial products company's stock after acquiring an additional 23,732 shares during the period. CIBC Asset Management Inc's holdings in Xylem were worth $7,845,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Fisher Asset Management LLC increased its stake in Xylem by 6.4% in the third quarter. Fisher Asset Management LLC now owns 404,613 shares of the industrial products company's stock valued at $59,681,000 after acquiring an additional 24,352 shares during the last quarter. LGT Capital Partners LTD. increased its stake in Xylem by 18.4% in the third quarter. LGT Capital Partners LTD. now owns 268,704 shares of the industrial products company's stock valued at $39,634,000 after acquiring an additional 41,730 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in 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 valued at $54,314,000 after acquiring an additional 413,904 shares during the last quarter. Abacus Wealth Partners LLC bought a new position in Xylem in the fourth quarter valued at $1,663,000. Finally, Boston Common Asset Management LLC increased its stake in Xylem by 15.3% in the fourth quarter. Boston Common Asset Management LLC now owns 143,740 shares of the industrial products company's stock valued at $19,575,000 after acquiring an additional 19,073 shares during the last quarter. 87.96% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms recently commented on XYL. Stifel Nicolaus reduced their target price on Xylem from $163.00 to $159.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Citigroup reduced their target price on Xylem from $174.00 to $168.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Robert W. Baird set a $161.00 target price on Xylem in a research note on Wednesday, February 11th. Royal Bank Of Canada reduced their price objective on Xylem from $176.00 to $162.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 11th. Finally, Jefferies Financial Group reaffirmed a "hold" rating and set a $130.00 price objective (down from $140.00) on shares of Xylem in a research note on Tuesday, March 31st. 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 company has a consensus rating of "Moderate Buy" and an average price target of $152.77.

Xylem Stock Performance

Shares of XYL opened at $109.84 on Friday. 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 one year low of $105.29 and a one year high of $154.27. The company has a 50-day simple moving average of $116.75 and a two-hundred day simple moving average of $128.41. The firm has a market capitalization of $26.11 billion, a PE ratio of 27.32, a price-to-earnings-growth ratio of 1.57 and a beta of 1.04.

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

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 issued a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Thursday, May 28th. Xylem's dividend payout ratio (DPR) is presently 42.79%.

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

Insider Activity at Xylem

In other news, CAO Geri-Michelle Mcshane sold 4,269 shares of Xylem 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 transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jerome A. Peribere bought 1,210 shares of the stock in a transaction dated 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 acquisition, the director directly owned 27,209 shares of the company's stock, valued at approximately $3,172,841.49. The trade was a 4.65% increase in their position. The SEC filing for this purchase provides additional information. 0.32% of the stock is currently owned by company insiders.

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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