Entropy Technologies LP Acquires Shares of 25,373 Xylem Inc. $XYL

Key Points

• Entropy Technologies LP opened a new position in Xylem during the fourth quarter, buying 25,373 shares worth about $3.46 million.
• Xylem reported better-than-expected quarterly results, with EPS of $1.12 topping estimates and revenue of $2.13 billion, up 2.7% year over year.
• The company also announced a quarterly dividend of $0.43 per share and a $1.5 billion share repurchase program, while analysts currently rate the stock a Moderate Buy on average.

Entropy Technologies LP acquired a new stake in shares of Xylem Inc. (NYSE:XYL - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 25,373 shares of the industrial products company's stock, valued at approximately $3,455,000.

Several other institutional investors and hedge funds have also recently bought and sold shares of the company. Fisher Asset Management LLC grew its holdings in shares of Xylem by 6.4% during 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 purchasing an additional 24,352 shares during the last quarter. LGT Capital Partners LTD. grew its holdings in shares of Xylem by 18.4% during 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 purchasing an additional 41,730 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Xylem by 2,309.7% during 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 purchasing an additional 413,904 shares during the last quarter. Abacus Wealth Partners LLC bought a new position in shares of Xylem during the fourth quarter valued at approximately $1,663,000. Finally, Callahan Advisors LLC bought a new position in shares of Xylem during the fourth quarter valued at approximately $1,721,000. Institutional investors and hedge funds own 87.96% of the company's stock.

Analyst Upgrades and Downgrades

XYL has been the subject of several recent research reports. Weiss Ratings lowered Xylem from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, May 8th. JPMorgan Chase & Co. lowered their target price on Xylem from $170.00 to $160.00 and set an "overweight" rating for the company in a report on Thursday, April 16th. Stifel Nicolaus lowered their target price on Xylem from $163.00 to $159.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. UBS Group increased their price objective on Xylem from $132.00 to $133.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Finally, Jefferies Financial Group reissued a "hold" rating and issued a $130.00 price objective (down from $140.00) on shares of Xylem in a report on Tuesday, March 31st. Seven 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.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $152.77.

Xylem Stock Performance

Shares of XYL stock opened at $109.92 on Monday. Xylem Inc. has a 12-month low of $105.29 and a 12-month high of $154.27. The firm has a market capitalization of $26.13 billion, a price-to-earnings ratio of 27.34, a price-to-earnings-growth ratio of 1.57 and a beta of 1.05. The business has a 50 day simple moving average of $115.78 and a 200 day simple moving average of $127.25. 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 (NYSE:XYL - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.03. Xylem had a return on equity of 11.26% and a net margin of 10.79%.The business had revenue of $2.13 billion during the quarter, compared to analyst estimates of $2.11 billion. During the same period in the prior year, the company posted $1.03 EPS. The business's revenue for the quarter 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, equities research analysts anticipate that Xylem Inc. will post 5.51 EPS for the current year.

Xylem Dividend Announcement

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

Xylem announced that its board has authorized a share repurchase program on Wednesday, February 25th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the industrial products company to purchase up to 4.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Jerome A. Peribere bought 1,210 shares of the business's stock in a transaction on Monday, May 4th. The stock was purchased at an average cost of $116.61 per share, for a total transaction of $141,098.10. Following the completion of the transaction, the director directly owned 27,209 shares of the company's stock, valued at approximately $3,172,841.49. This trade represents a 4.65% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Geri-Michelle Mcshane sold 4,269 shares of the company's stock in a transaction that occurred 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 completion of the sale, the chief accounting officer owned 3,605 shares of the company's stock, valued at $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. Corporate insiders own 0.32% of the company's stock.

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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