Covea Finance Boosts Holdings in Xylem Inc. $XYL

Key Points

• Covea Finance has increased its stake in Xylem Inc. by 34.8%, owning about 0.08% of the company after purchasing an additional 47,646 shares.
• Xylem has reported a net margin of 10.74% and exceeded earnings expectations by reporting $1.26 earnings per share in its most recent quarter.
• Multiple analysts have raised their price targets for Xylem, with UBS Group increasing it from $164.00 to $168.00 and giving a "buy" rating.

Covea Finance increased its stake in shares of Xylem Inc. (NYSE:XYL - Free Report) by 34.8% in the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 184,547 shares of the industrial products company's stock after buying an additional 47,646 shares during the period. Covea Finance owned about 0.08% of Xylem worth $23,873,000 as of its most recent SEC filing.

Other large investors have also added to or reduced their stakes in the company. AFG Fiduciary Services Limited Partnership bought a new position in Xylem during the second quarter worth about $275,000. IFM Investors Pty Ltd boosted its position in shares of Xylem by 11.6% in the second quarter. IFM Investors Pty Ltd now owns 54,073 shares of the industrial products company's stock valued at $6,995,000 after acquiring an additional 5,617 shares during the period. Dynamic Advisor Solutions LLC bought a new position in shares of Xylem in the first quarter valued at approximately $694,000. Farther Finance Advisors LLC boosted its position in shares of Xylem by 30.4% in the first quarter. Farther Finance Advisors LLC now owns 1,797 shares of the industrial products company's stock valued at $215,000 after acquiring an additional 419 shares during the period. Finally, NBC Securities Inc. bought a new position in shares of Xylem in the first quarter valued at approximately $72,000. Hedge funds and other institutional investors own 87.96% of the company's stock.

Insider Buying and Selling at Xylem

In other news, CAO Geri-Michelle Mcshane sold 1,000 shares of the stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $139.96, for a total value of $139,960.00. Following the transaction, the chief accounting officer owned 2,957 shares in the company, valued at $413,861.72. This represents a 25.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.27% of the stock is owned by company insiders.

Analysts Set New Price Targets

XYL has been the subject of a number of analyst reports. UBS Group raised their price objective on shares of Xylem from $164.00 to $168.00 and gave the company a "buy" rating in a research report on Tuesday, August 5th. Stifel Nicolaus lifted their target price on shares of Xylem from $162.00 to $175.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Barclays assumed coverage on shares of Xylem in a research report on Friday. They set an "overweight" rating and a $165.00 target price for the company. Cowen reiterated a "hold" rating on shares of Xylem in a research report on Tuesday, August 26th. Finally, Citigroup reiterated a "buy" rating and set a $152.00 target price (up from $137.00) on shares of Xylem in a research report on Monday, July 14th. Seven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $152.33.

Xylem Price Performance

Shares of NYSE:XYL opened at $143.55 on Tuesday. The firm's 50 day moving average price is $139.49 and its 200-day moving average price is $128.12. Xylem Inc. has a twelve month low of $100.47 and a twelve month high of $145.33. The company has a quick ratio of 1.43, a current ratio of 1.90 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $34.94 billion, a PE ratio of 37.29, a price-to-earnings-growth ratio of 2.47 and a beta of 1.09.

Xylem (NYSE:XYL - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The industrial products company reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.15 by $0.11. Xylem had a net margin of 10.74% and a return on equity of 10.33%. The firm had revenue of $2.30 billion for the quarter, compared to analysts' expectations of $2.20 billion. During the same quarter in the prior year, the business earned $1.09 EPS. The business's quarterly revenue was up 6.1% on a year-over-year basis. Xylem has set its FY 2025 guidance at 4.700-4.850 EPS. Equities research analysts expect that Xylem Inc. will post 4.65 EPS for the current year.

Xylem Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 25th. Stockholders of record on Thursday, August 28th will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, August 28th. Xylem's dividend payout ratio is 41.56%.

Xylem Profile

Xylem Inc, together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services. The Water Infrastructure segment offers products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment and rental services under the ADI, Flygt, Godwin, Sanitaire, Magneto, Neptune Benson, Ionpure, Leopold, Wedeco, and Xylem Vue brands.

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